Players in Turkey: Higher energy costs have little impact on PET

Buyers and sellers in Turkey comment that the rising energy complex has not had a major impact on PET prices so far as lower feedstock costs in Asia and dampened demand continue to dominate sentiment.

Import PET prices on a CFR Turkey basis edged down by $10/ton for origins including Chinese, Pakistani and duty-free Malaysian cargos amidst thin buying interest. This was in line with lower export prices out of China and South Korea. Based on export PET prices as low as $835/ton FOB China, prices could theoretically start from $880/ton CFR Turkey for this origin. The prevailing Chinese PET offers subject to 6.5% customs duty are at $900/ton CFR Turkey, subject to 6.65% additional duty.

A trader attributed the softening trend in China to lower MEG costs. “On the other side of the coin, crude oil prices have been on a firming trend in recent days, which we believe may put a cap on further decreases in MEG and PTA costs in the near term,” he argued. The recent increases in oil prices will not have a considerable impact on the market given quiet conditions, according to another seller.

A bottle manufacturer predicts that higher energy costs will not affect the PET market much. The buyer stated, “Prices started to retreat in line with our previous expectations based on the fact that most buyers have already secured their needs for summer in the previous months.”

In feedstock news, spot PX prices were down by around $25/ton on an FOB South Korea basis compared to early May. Spot MEG costs plunged by around $60/ton on a CFR China basis in the period while PTA prices lost $20/ton with the same terms.