MOSCOW (MRC) - Turkish plastics converters intend to fight against a sharp increase in raw material prices and will refuse to buy it from 1 April, 2021, the Turkish Plastics Industry Foundation (PAGEV) Association of Polymers of Turkey said in a statement.
Plastics converters in China also announced a similar campaign. PAGEV and China’s processing and machine manufacturing associations (CPPIA) and CPMIA (China’s processing and machine manufacturing associations) have reached an agreement on action in the polymer market, which includes a moratorium on the purchase of foreign raw materials.
Turkish media quotes PAGEV President Yavuz Eroglu: “We will not buy polymers until stocks of raw materials have dropped to a critical level. price reduction".
Earlier in February, the PAGEV association decided to boycott foreign supplies of raw materials. At the same time, it was proposed to temporarily abolish the import duty on the import of polymers into the country and prohibit local producers, namely the Petkim concern, from selling polymers for export.
Sharp price hikes and shortages of polymers, logistics problems have caused many problems for plastics processors around the world. “The loss of price stability has become a major concern and complaint for all of our industry companies,” Eroglu said during a recent PAGEV board meeting.
Earlier it was reported that the leadership of the Russian Union of Plastics Processors (SPP, Moscow) (SPP, Moscow) appealed to all manufacturers of polymer products with a request to provide copies of official documents confirming the high volatility of polymer prices and cases of refusal or non-compliance with deliveries on contracts with Russian polymer producers in the period from October 1, 2020 to March 19, 2021, as well as on price changes for April 2021. These letters, copies of correspondence, official price lists are required by the SPP to prepare for the work of the group with the participation of federal executive bodies and organizations at a meeting in the Ministry of Industry and Trade under the Government of the Russian Federation, which is scheduled for March 29, 2021.
It was also noted that the Ministry of Industry and Trade is against the regulation of polymer prices in Russia.
According to the ICIS-MRC Price Report, contractual deals for PVC supplies with K64/67 in March were done in Russia in the range of Rb116,000-119,000/tonne CPT Moscow, iincluding VAT, for volumes up to 500 tonnes. The increase against February amounted to Rb4,000-5,000/tonne. Three of the four producers intend to increase the contract prices for April supplies. A price increase of Rb10,000-15,000/tonne was discussed.
MRC