A Turkey-based producer commented that the PET market in the country remains frail going into Q3 2020. The producer shared with SSESSMENTS.COM that demand for PET in Turkey is quite stable these days. The price is also not fluctuating much recently as the energy market is also rather stable.
As coronavirus is wreaking havoc, especially on the textile industry demand, producer pointed out demand from the food and beverage sector is still ongoing, which helps PET Bottle demand exists. Although, SSESSMENTS.COM noted that demand for small water bottles is shrinking as the tourism sector in Turkey remains muted amid travel restrictions around Europe. The producer also heard that China PET producers opted to focus on the local market as the prices in the export market remain unattractive while import demand in Turkey is still flat. Speaking about the yearly trend, the producer told SSESSMENTS.COM that 2020 trend for PET demand in Turkey will likely remain at the same level as 2019 due to coronavirus pandemic. According to the producer, pandemic causes overall demand unable to strengthen after in the previous year PET demand in Turkey weakened by the extreme weather conditions.
The producer also revealed that the company diversifies its product by entering a recycled PET Bottle (rPET) market. From March-April 2020, the producer has begun the process of entering into a contract to become an rPET supplier for European beverage manufacturers. According to producer calculations, 2021 would be the rPET year as there would be more beverage manufacturers starting to use rPET resins, in which more and more rPET players will emerge, both from the existing PET producers as well as new players. While at the moment, there is not much interest in rPET as the overall PET business hampered by the pandemic, hence, customers are not willing to pay extra money for rPET. Converters only focus on using virgin resins for the time being, while SSESSMENTS.COM quoted market talks saying that rPET price is still high recently, around $1,400/ton on FOB basis.
In terms of outlook, the producer told SSESSMENTS.COM that PET price is expected to be stable until October as the crude oil prices look quite stable as well.
