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PET Market Outlook & Trend: North/South America
°™°™Mr. Inkyu Yang, sales manager from POSCO Daewoo Corporation

2017-10-19 16:57:34
Mr. Inkyu Yang, sales manager from POSCO Daewoo Corporation gave his speech of PET Market Outlook & Trend: North/South America 

The report analyzed American PET market in terms of North America and South America. In North America, PET market was slightly oversupplied and regional imbalance was obvious such as net export of Mexico and Canada yet net import of USA. In Q1 2018, M&G will start up a one million mt/yr PET unit in the USA. In addition, local market taxed 7.82-126.43% anti-dumping duty on products from China, Canada, Oman and India. Besides USA, about 700kt of total net surplus appeared, including over 350kt exported to the USA. Mexico products were mainly exported to the USA and Colombia with 70kt exported to Colombia (10% of import duty waive) and shorter transit time (4-5 days). For USA, about 500kt of net deficit and over 50% of the deficit was from NAFTA including Mexico (35-40%) and Canada (10%). The other 50% were split by regions in USWC like Taiwan, South Korea and Indonesia, and USEC like Pakistan and UAE. Non-NAFTA imports were composed of west 70% and east 30%. After imposed anti-dumping duties, the imports from non-North American free trade agreements countries (China, Canada, Oman, India) increased. M & G's new plant with capacity of 1 million tons could supply the US West Coast, East Coast and Mexico. But in the South American (West Coast) market, no capacity is available. Asia is the largest import origin with relatively low political risk and tax advantages. South American has the largest CSD market which requires Coca-Cola / Pepsi-Cola certification, so new producers are subject to entry barriers. Chinese bottle chip has its advantages: low production costs, CSD grade production, duty barriers to other origins. The report pointed out that the South American market restructuring is ongoing. On the one hand, it is the trade protectionism: Argentina and Brazil, on the other hand, the freight is increasing from NE/SE Asia, in addition, it is to face new capacity expansion such as PQS. At last, he concluded that global PET supplies will remain surplus, net trade is increasing, "fit" demand will lead to the reorganization of global trade operations, and the importance of some anti-dumping trade protectionism is increasing.
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