Sentiment improves in Turkey’s PET market

Turkish players report improved sentiment in the PET market over the past week. Sellers started to receive an increasing number of inquiries from buyers in line with the opening high season for PET bottle applications amidst warmer weather conditions, as per ChemOrbis. Most sellers reported better sales compared to March, although, firmer sentiment has yet to affect import prices. This is mainly because spot feedstock markets followed a steady to slightly softer path recently. In Asia, where spot feedstock costs recorded gradual drops during March, MEG and PTA prices gained some ground during last week, while PX prices softened further. According to the latest figures, spot MEG prices were up US$20/ton while PTA prices edged up US$5/ton both on a CFR China basis in a weekly comparison. On the other hand, spot PX costs lost US$15/ton on FOB South Korea basis in the same period. With respect to the beginning of April, MEG prices are up by US$10/ton, while PTA costs didn’t change much, in contrast to the spot PX market which dropped by US$25/ton. Import PET offers into Turkey saw stable prices or relatively smaller decreases compared to the previous weeks when there were persistent price cuts during H2-March, owing to cautious purchases of buyers amidst their sufficient stocks as well as bearish feedstock markets. Looking at the overall ranges, non-European import PET cargoes that are subject to 3% customs duty were stable to US$20/ton lower week over week. Middle Eastern cargoes were priced steady to US$20/ton softer as well. Central Asian offers were down US$20-30/ton, as per ChemOrbis. “Prices have slightly softened. Buying interest picked up noticeably this week and April business is likely to be closed at current levels,” a trader commented. In the distribution market, an attractive deal softened the low end of the local range by US$10/ton. Nonetheless, the high end rose. A bottle converter who purchased some material noted that the sentiment is firmer and he expects to see price gains soon. A distributor reported receiving a good number of inquiries and they managed to conclude better sales over the week. “If you had asked me in March, I would not be able to say anything about demand being good. This is the first improvement we have seen over the last 6-8 weeks and we are pleased with our current sales performance,” he told ChemOrbis. He expects to see further improvement and therefore higher prices in the days ahead. In the light of better sentiment, domestic PET producers have been following flat pricing strategies since the start of April after issuing price cuts late last month. A source from a PET producer reported that their sales performance improved. “We managed to conclude deals easier than past weeks and we expect prices to move up further as of next week,” he commented.