05 April 2012 09:09 [Source: ICIS news]
DUBAI (ICIS)--The polyethylene terephthalate (PET) spot market in Saudi Arabia is expected to enter the peak demand season in the second quarter, despite the recent low sales volumes, a major regional converter based in the Gulf Cooperation Council (GCC) said on Thursday.
"In Saudi Arabia, the weather has just started to get warmer and it was a relatively flat Q1 [first quarter] for us, unlike the previous years," said the converter who did not wish to be named. The source was speaking at the sidelines of the third Gulf Petrochemicals and Chemicals Association (GPCA) Plastics Summit.
"On top of that, the ongoing political unrest in some Middle Eastern regions is also affecting sentiment in the regional PET market," he said.
In the first quarter of 2012, sales volumes to the regional market dropped by around 15% compared with previous years, according to the converter.
"However, [sales] volumes are starting to pick up this month," he said, adding that it was just a delay in the peak demand season.
"Saudi is going to stay as the biggest market in the Middle East," the converter said.
He estimated that demand for PET resins in Saudi Arabia is at around 200,000-250,000 tonnes/year.
The GPCA Plastics Summit ends on Thursday.
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