Petrochemicals group Petkim lowers polymer prices for PE, PP and PVC in Turkey by US$25-$35/tonne due to declining European demand and low feedstock prices for naphtha, ethylene and propylene
November 2, 2012
(Industry Intelligence Inc.)
– Amid low feedstock costs and declining demand for polymers in Europe, Turkish petrochemicals group Petkim Petrokimya Holding AS has reduced its polymer prices by US$25 to $35 per tonne, reported Platts on Nov. 1.
Prices on a free-carrier basis for Aliaga, Turkey, were reduced for low density polyethylene by $25-$35/tonne to $1,690-$1,710/tonne and cut for high density polyethylene by $25/tonne to $1,650-$1,710/tonne, market sources told Platts.
Petkim lowered its polyvinyl chloride prices by $30tonne to $1,110-$1,140/tonne and reduced its polypropylene prices by $35/tonne to $1,615-$1,625/tonne, according to the sources on Nov. 1, Platts reported.
These price drops followed the reduction on Oct. 30 of November contract prices for ethylene and propylene in Europe. Prices free delivered to northwestern Europe fell from October by €15 (US$19) per tonne to €1,275/tonne for ethylene and by €20/tonne to €1,120/tonne for propylene.
This was in line with the modest increase in naphtha prices, which closed on Oct. 31 at $943.25/tonne, up from $939.75/tonne a day earlier and $925.50/tonne a week ago, according to Platts’ data, reported Platts.
With the forecast calling for continued weak demand, reductions in production and inventory were planned by many producers and consumers in downstream markets. One trader called Turkey’s market “bad.”
Reflecting what is happening in Europe, buying activity is weak and inventories are building in Turkey, the trader said. With the Eid holidays recently ended, orders are low and industry players are cautious, according to market sources, Platts reported.
The primary source of this article is Platts, New York, New York, on Nov. 1, 2012.