FLUCTUATIONS IN TURKISH PET MARKET
DECREASE AND DISCOUNT FROM THE DOMESTIC MANUFACTURER
In Turkey, the competitive offers for some reported origins other than China created pressure on imported PET market. Sides are now expecting to see further declines in the face of cautious demand despite the recent declines in the raw material markets and the high season.
Sharp Declines in PX Weakened the Expectations
Spot PX prices in Asia and Europe have seen significant decreases due to abundant supply. On the basis of average data, the spot PX on the basis of FOB NWE fell to the lowest levels of the last year following the recent declines. FOB Korea prices have fallen below the $ 1000 / ton threshold for the first time since the beginning of January last week.
Meanwhile, prices in Asia and Europe have decreased by about 3% and 6% on average on a weekly basis since the beginning of April. Considering that global consumption is lower than expected despite the high season, the decline in PX prices is expected to reflect on PET prices. Industry leaders said “Wen. expect to see cost-driven reductions in PET. Because in the short term we do not think that there is a factor that will turn the direction of prices up.”
Purchasers’ Stocks are at Ease
The major buyers had previously tied goods in anticipation of seasonal increases. However, the expected increases in the season have not yet taken place.
Producers: “Purchasers are comfortable to stock up on purchases. They can return to the market after consuming their stocks.”
Meanwhile, some purchasers are unwilling to buy beyond their needs in order to avoid cautiousness due to cash congestion and economic concerns. According to the producers, commercial activities may continue to be sluggish during Ramadan.
Increased Oil Prices Can Prevent Sharp Fall
However, oil prices at the top of the last 6 months can ease the pressure on PET. According to the average data, NYMEX and Brent oil contracts reached the highest levels since November 2018 due to supply concerns. According to the parties, the increase in oil prices may limit the amount of expected decreases.
A revival in seasonal demand can also support prices significantly.
Discount from Domestic PET Manufacturers in Turkey
In Turkey, a domestic manufacturer, dropped the list prices $ 25/ton for the first time after 6 months of steadiness.
Accordingly, the manufacturer’s delivery to Turkey facility / warehouse is $ 1350 / ton in cash, and 60/90 days deferred payment is $ 1,450 / ton except KDV PET-based list prices. A source from the producer’s side mentioned that In April, demand slowed down compared to March and last month.
A brokerage firm also made a similar comment: “We do not expect an improvement in activities during the month of Ramadan due to the seasonal slowdown. In addition, global PET demand has remained sluggish.”
The producer’s decision was not only due to a weakening demand, but also due to loosening imported PET offers. According to the average data, imported PET prices have recorded a small decrease of around $ 15 / ton since the beginning of April.