ChemOrbis 2nd PO Event: Turkey in the eye of the hurricane
“Lower crude income may delay investments in the USA, China and Russia while it may also push Russian and Iranian sellers to pursue aggressive petchem sales,” Borusso said. However, if crude oil goes back up to $100/bbl, investments will resume and margins will recover. A lower crude oil scenario will bring the petrochemical cycle to a peak in 2019-2020 whereas renewed investment on higher crude would send the market into a trough around 2020.
Borusso also analyzed total and net additions of PP and PE capacity by 2015-2025 in a graph showing different regions. He argued that Russia and the CIS region shows the largest net addition of supply less demand by 2025 both for PP and PE assuming all the projects are built as announced.
After talking about the inland routes from Russia to Asia and other destinations, Borusso argued that logistic developments may provide a different supply scenario in Central Asia. He also reiterated his comments from the panel discussion saying that Turkey is affected by the SEA market price albeit indirectly in terms of its relation to China. He also argued that supply fluctuations from Iran and Russia may cause a lower differential between SEA and Turkey.
More free plastics newsPlastic resin (PP, LDPE, LLDPE ,HDPE, PVC, GPS; HIPS, PET, ABS) prices, polymer market trends, and more...
- Asian ABS players turn cautious after recent rally
- July PVC dealt lower in Europe, what lies ahead for August?
- China’s Jan-May total polymer imports hit a record of nearly two decades
- India’s local PVC market soars to 6-month high after customs hike
- China’s export PET market faces correction after rising 10% from two-year-low
- Spot propylene moves in opposite directions in Asia and Europe
- European PS hits year-to-date low on July drops
- Turkey’s PP market on par with China, LLDPE and HDPE trade at discount
- Bearish trend persists in July for PP, PE in Mid-East, Africa
- Vietnam’s PE market sees first hike attempts after two months