In several Mediterranean markets, namely Europe, Turkey and Egypt, PET players have started to report improved demand ahead of the approaching summer months which is high season for PET applications.
In Europe, players have started to receive April PET offers with decreases of €30-40/ton from March given lower feedstock prices while currently players are evaluating the sustainability of a recent recovery in crude oil markets and the possible effects of these gains on the downstream PET markets. The current trend in the region is indicating the first price falls since mid October, according to weekly average levels on ChemOrbis Price Wizard.
A producer in Italy reported that demand is good as many buyers halted their purchases in the previous months when prices were on a firming note, adding that the rebound of crude oil prices in the last few days may halt the downward trend in May.
“We have purchased some material in order to build up some stocks ahead of the beginning of high season. Demand is better in Southeast Europe compared to Northwest Europe. We are receiving several calls from our suppliers,” said a manufacturer in Belgium.
A trader also commented that demand is good and slightly better than in March. “We are monitoring the feedstock costs as they have slightly increased over the past week which may limit decrease amounts in the days ahead,” noted the trader.
In Turkey, although the uncertainly looming over the activities in polymers markets given the upcoming referendum on April 16, PET players said that buying appetite has increased for PET products recently.
A domestic producer said that they sold out their April quota and they are now selling their May allocation. “Demand is good and there are more activities in the market this week. We expect big buyers to come back to the market as they have low stock levels,” added a producer source.
Similarly in Egypt, players report that PET demand has improved recently especially in the local market as many players prefer to meet their needs from the local market in order to flee from the import market risks amidst high exchange rates and their cash flow issues.
A PET bottle manufacturer said that end product demand is stable and added, "We are expecting demand to record further improvements by mid-April given the approaching summer season.”