Turkish PET producers adopt firmer stances on rising costs

In Turkey, domestic PET producers are voicing firmer price targets after returning from the K Fair, which was held on October 19-26 in Dusseldorf, Germany. Their firmer attitude is attributed to higher upstream costs in Asia which pushed up import PET prices in China as well this week.

Overall, domestic producers’ list prices were quoted at $1000-1080/ton, cash and $1050-1080/ton, 90/120 days deferred payment, FD/ex-warehouse Turkey, not inc VAT for another week.

“During the K Fair, we concluded several deals amidst a firm PET sentiment. A few Chinese producers stated that they are not planning to export their materials for now as their own market is doing very well. Energy costs remain high despite the recent ease in crude oil markets which keep feedstock costs firm. Under these bullish circumstances, we are not willing to concede to below $1000/ton at the present. We are mulling over lifting our prices next week,” a domestic producer stated.

Similarly, a second producer plans to issue higher PET prices next week. A source from the seller reported, “We are standing firm on our current offers as our costs including for PTA and MEG increased notably over the past two weeks.“

Additionally, recently surging IPA (Isophthalic Acid) prices creates an upwards pressure on Turkish domestic producers as it counts for 2% of their PET production. A producer highlighted, “Although we consume a limited amount of it, visible gains in IPA costs are important for us as it is an expensive feedstock.”