Turkish PET producers revise list prices up

In Turkey, two domestic PET producers applied increases of $30-40/ton on their list prices over the week. Suppliers cited bullish feedstock costs, the strong sentiment in global markets as well as a cautious pickup in demand as the main reasons behind their hikes.

Accordingly, the two domestic PET producers’ list prices were revised up to $1250-1280/ton, cash and $1300-1380/ton FD/ex-warehouse Turkey, 90 days, not inc VAT.

“PET prices are not likely to soften so long as ICE Brent crude oil futures stand close to the recent $70/bbl threshold. Some large buyers have started to come back to the market to source some material with the anticipation of further hikes. We started seeing improved demand from the US after the country imposed preliminary antidumping duties for certain Asian origins. We are almost sold out for January,” a source from a domestic producer commented.

Despite bullish factors supporting possible additional hikes, a different local producer remarked that hikes in question might not be welcomed immediately by the buyers’ side. Nonetheless, the producer source said, “We’re clearing our backlogs. Increases stem from supply concerns as well as firmer feedstock costs, which are likely to gain further ground. Therefore, buyers aim for securing their January-February cargoes in late December before the seasonal buoyancy starts.”

The firming trend in global PET markets kicked off earlier in October-November period while its reflection on Turkey’s local market took some time given the lack of demand.