20 November 2013 15:26 [Source: ICIS news]
DUBAI (ICIS)--Europe’s polymer demand is expected to improve next year in tandem with the regional economies, a senior industry executive said on Wednesday.
Demand in Italy has already started to pick up, said Thomas Endres, CEO of MB Barter & Trading, a Switzerland-based company that distributes and trades 1.3-1.5m tonnes of polyethylene (PE), polypropylene (PP) and polyethylene terephthalate (PET) globally.
Polymer distributors in Europe have experienced thin margins for most of this year because of weak demand, as several regional economies slowed down or slipped into recessions, Endres said.
He was speaking to ICIS at the sidelines of the 8th annual Gulf Petrochemicals and Chemicals (GPCA) Forum.
More than 65% of the polymers handled by MB Barter goes to Europe, said Endres.
The PE and PP trade flows to Europe would change after the region raises the import duty on Middle Eastern cargoes from 3% to 6.5% in January 2014, he said.
More PE and PP cargoes would flow from South Korea and Thailand as a result, he said.
PE and PP from South Korea are exempted from import duty in Europe, and that from Thailand are subject to a 2% duty rate.
The GPCA 2013 Forum will end on 21 November.
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