Weak Demand Limits PET Price Increases in Turkey

Turkey's local PET bottle-grade market has struggled to convert higher production costs into stronger transaction prices. Although domestic producers attempted to raise prices in recent weeks, supported by safeguard duties on imports, firmer feedstock costs, and the earlier rally in crude oil, buyers continued to resist higher offers due to weak demand and sufficient local supply.

While producers targeted $1,400/ton ex-warehouse Turkey (excluding VAT), most transactions were concluded in the low $1,300s/ton, reflecting limited buyer acceptance.

Higher Offers Face Strong Resistance

Domestic producers entered the market with greater confidence, encouraged by higher import costs following the safeguard duty and stronger upstream markets.

Feedstock prices also remained supportive despite recent fluctuations in crude oil. Monthly average prices for key raw materials stayed above previous levels, while MEG continued its upward trend, adding further pressure to production costs.

However, as crude oil lost momentum toward the end of July, buyers became increasingly cautious. The gap between sellers' asking prices and actual deal levels widened, with negotiations largely influenced by weak purchasing interest rather than higher production costs.

Market participants reported that producers frequently accepted lower prices than their initial offers to secure sales, indicating that higher list prices were difficult to achieve in the current market environment.

Weak Demand Continues to Control the Market

Industry participants believe that although safeguard duties and stronger feedstock costs have improved producers' pricing confidence, they have not changed the underlying demand situation.

Converters continue to purchase cautiously, avoiding large inventory builds due to slow end-user demand. Comfortable local availability and the upcoming European holiday season are also expected to limit export opportunities, keeping additional supply within the domestic market.

Looking ahead, producers are likely to continue defending firmer price targets if crude oil remains above late-June levels. However, discounts are expected to remain common in negotiations unless downstream demand improves significantly.

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