ChemOrbis 4th Turkey Petrochemical Conference: What lies ahead for Turkey’s PET market?
Kökoğlu, General Manager of Köksan PET A.Ş., started his presentation by highlighting the 2015 market panorama, which was shaped by volatile crude oil prices and foreign exchange parities as well as the unstable political situation in Turkey.
Kökoğlu stated that global Polyester PET demand is expected to be around 80 million tons in 2015 while PET resin demand willl form 23.2 million tons of this total, a 5.5% year-on-year increase.
“Between the years 2006-2016, the demand and supply balance is tilted towards supply. Polyester PET demand in global markets has reached 80 million tons in 2015 while the current PET capacities are above this figure. Demand from the Asia Pacific region is greater when compared to other global markets. They are self sufficient and are also net exporters. However, the Middle East is also likely to become a net exporter starting from 2017.
Coming to the Turkish market, Kökoğlu said that Turkey has three local producers with a total production capacity of 370,000 tons/year. “There is also a 4th producer operating in the Free Zone with a capacity of 220,000 tons/year. That makes overall production nearly 600,000 tons/year in Turkey where overall PET consumption is expected to be around 400,00 tons in 2015. That makes 200,000 tons of extra PET production in Turkey that needs to be exported,” he added. Kökoğlu also commented that PET consumption centers mostly on the beverage sector in Turkey while edible oil, PET folio and cosmetics are the next most commonly used areas for PET resin.
Kökoğlu also touched upon upstream markets developments and said, “Long PTA supplies in China and India will force these countries to find new markets while MEG operating rates are estimated to come down by 18% during 2014-2019. Meanwhile, due to the oversupply situation, new PX investments are expected to slow down after 2015.”
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