Turkish petrochemical producer Petkim cut its list prices for low density polyethylene, high density polyethylene, and polypropylene, due to more competitive offers from Europe following the weakening of the euro against the dollar, sources said Tuesday.
LDPE, HDPE (injection, blowmoulding, pipe), and PP list prices were down by $25/mt, $25/mt, and $15/mt, respectively.
LDPE and PP prices were reduced to $1,805-1,830/mt FCA Aliaga, and $1,760-1,785/mt. HDPE injection, blowmoulding, and pipe, were reduced to $1,775/mt, $1,785/mt, and $1,815/mt.
The fall in Petkim’s prices came following the recent trend of increased PP and PE product moving to Turkey, which led to a fall in Turkish prices.
Petkim was not immediately available to confirm.
PP raffia prices, in particular, were said to have collapsed on a glut of product coming from the Middle East, sources said, with offers heard at $1,520-1,530/mt Turkey.
European offers for LDPE were heard at Eur1,300-1,320/mt CFR Turkey. HD blowmoulding offers were heard at Eur1,230-1,250/mt CFR Turkey, and some HD film deals were heard done at Eur1,260-1,270/mt CFR Turkey, sources said.
The greater flow of PP and PE to Turkey was driven partly due the fall of the Euro against the dollar, which fell to $1.2832 on Monday, a low not seen since July 9, 2013.
It was also driven by the weak demand in the European PP and PE markets.
This low demand was due to bearish October contract price expectations following the recent slump in feedstock naphtha, which closed Monday at $831.75/mt CIF NWE.
When the ethylene and propylene contract prices settled for September at Eur1,150 and Eur1,105/mt, respectively, FD NWE, naphtha was trading at $868.25/mt CIF NWE.