04 April 2012 12:44 [Source: ICIS news]
DUBAI (ICIS)--Demand for polyethylene terephthalate (PET) bottle-grade resins will remain healthy in the Gulf Cooperation Council (GCC) region, with an estimated year-on-year growth of 8–12%, a source at a major regional converter said on Wednesday.
“Demand for water has increased; so has the demand for other applications such as hot-filled juice, carbonated soft drink as well as water cups,” the UAE-based converter said from the sidelines of the third Gulf Petrochemicals and Chemicals Association (GPCA) Plastics Summit.
“[The spot market] has been relatively slow in the first quarter, mainly because a number of buyers had taken a position and stocked up in the beginning of the year, when the spot prices just crossed $1,500/tonne [€1,140/tonne] CFR [cost & freight],” the converter added.
He was confident that demand will improve in the coming months, as the summer season kicks in.
“The only reason why the spot market is relatively slow right now is that buyers are resisting any price hikes, given their comfortable inventories,” he said, adding: “Demand is very much there.”
The Plastics Summit runs from 3–5 April in Dubai.
($1 = €0.76)
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