TWO LEG SOLUTION PROPOSAL OF PAGEV FOR THE ASTRONOMIC PRICE INCREASE IN PLASTICS RAW MATERIALS IN TURKEY

Drawing attention to the 100 percent increase in prices, PAGEV President Mr. Yavuz Eroğlu: "First of all, the domestic petrochemical company should sell the raw material that is already scarce to the domestic market instead of exporting it and the extra taxes on imported raw materials should be temporarily suspended"

The rise in raw material prices continues to be the primary agenda item of industrialists. Worldwide, after the reduction of production for various reasons, there have been more than a hundred percent astronomical price increases in plastic raw materials in the last 6 months. The increase in the prices of plastic raw materials used in the bottle of water we drink, the toothbrush we use, the water pipe, the refrigerator, the car, the food packaging, the mobile phone, the yarn that our clothes touch, in short, in every product from head to toe, is on the way to becoming the main actor that will trigger inflation.

The industrialist, who must buy the raw material he uses in production at high prices, is experiencing difficult processes with his customers and is rapidly melting his capital due to increasing prices. PAGEV continues to offer solutions to both the public and the economy management regarding the astronomical price increases in raw material prices. In this context, we present our suggestion and press reflections below to your attention.

Of raw material production in Turkey PAGEV President Yavuz Eroglu, indicating that stayed drop in the bucket next to aggregate demand, raw material, at least the name can be resolved in terms of Turkey astronomical price increases in the prices has shared the following views: "The domestic market has a serious demand for plastic raw materials.

Therefore, domestic manufacturers, the price of domestically more needs to revise its export strategy to ensure the climb. in the EU's main producers of raw materials in the country, supply shortages or price increases in the period they give the priority to their domestic market. Therefore, we are also as industrialists in Turkey have the right to expect the same approach from the domestic producers of raw materials. in addition, plastic is also managing the economy Instead of exporting raw materials as raw materials, we expect the domestic raw material producers to take the measures that will open the way to export them in a more value-added way by processing them domestically. It is to act in a massive state. If the call of the producer is obstructed, the public needs to draw the frame as a mediator or playmaker. As a matter of fact, in the past years, the public has imposed restrictions on raw material exports to prevent speculation in different sectors and contributed to the solution of the problem. "

Describing his second solution proposal to prevent the crazy rise in raw material prices, albeit partially, Eroğlu said, until this critical period triggered by the pandemic ends, temporary suspension of taxes such as reference price, surveillance, antidumping, additional financial liability on imported raw materials, at least within a certain timetable. made the offer. Stating that temporarily not collecting taxes from imported raw materials will bring a partial relief in prices, Eroğlu said, ‘Since it will be free of taxes, the cheaper imported raw materials will enable the wheels in the factories to spin faster. There will be a lowering effect on production costs and therefore on product costs. For example, the price of the plastic water bottle we buy from the market is determined by the cost of the plastic bottle rather than water. Therefore, our solution to the astronomical rise in raw material prices; In the first step, we can summarize that the domestic integrated petrochemical company sells all the raw materials it produces to our industrialists in the domestic market instead of exporting it, and in the second step, taxes such as reference price, surveillance, antidumping, additional financial obligation received from imported raw materials are temporarily not charged. These steps will allow the disposal of our production and the revival of Turkey's economy while relaxing on the other hand with a decrease in costs as well as facilitate the attachment of a 5 percent inflation target in the macro economy, "he said.

Plastics raw material prices increased between % 23-137 in the last 6 months and between % 25-56 in the last 3 months in Turkey due to the production cuts of global manufacturer because of compelling reasons. This situation is an important problem that prevents competitive production and export in the plastic products industry.

Price Increases in Plastics Raw Materials (%) 

Plastics Raw Materials

Increase in The

Last 6 Months

Increase in The

Last 3 Months

PVC13756
GPPS6050
HIPS5550
AYPE6040
YYPE4725
PP4540
PET2340


Source: Chemorbis

Plast Eurasia 23-26 November 2022
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