Currency Turkish Lira Crashes

Turkish Lira Crashes 5% And Prompts Contagion Fears – Currency Analysts Say Rand And Real Vulnerable

Currency Turkish Lira Crashes

UPDATE: After firming overnight, the Turkish Lira continued to incur losses in early Friday trading with the US Dollar to Lira exchange rate last seen trading at 5.63607, up 1.89% in favour of the Greenback.

Speaking late on Thursday, Finance Minister Berat Albayrak said Turkish banks had provided billions of Lira liquidity to FX markets and that market normalisations had begun. Currency Turkish Lira Crashes 

Nevertheless, the overarching issues of US-Turkey tension remains prevalent leading some analysts to maintain a bearish outlook on the TRY.

Commenting on the factors impinging on the Lira, Danske analysts wrote “One of the reasons for investor caution is the increasing tensions between Turkey and US. A Turkish employee of the US consulate in Istanbul went on trial on Tuesday on charges of espionage, terrorism and playing a role in an attempted overthrow of the government in a case that has strained Turkey’s ties with the US,” before adding “We remain bearish on the TRY.”

The Turkish Lira plunged in Thursday trading amid concerns over market liquidity as the central bank continue efforts to underpin the TRY and avoid a repeat of 2018’s rout.

At the time of writing, the US-Dollar-to-Lira exchange rate was seen to be trading at 5.56624, 4.65% up from the session open.

Thursday saw the Central Bank of the republic of Turkey (CBRT) raise its total lira swap sale limit to 30% from 20% for swap transactions that have yet to mature following Monday’s raise from 10% to 20% as the central bank attempt to shore up bank’s forex reserves, which declined sharply in the first two weeks of March as investors aggressively sold the TRY. Currency Turkish Lira Crashes 

Volatility for Lira markets has surged over the past four days with current levels unseen since 2004

Expected volatility among other EMs indicated that the most vulnerable EM currencies could be set for a bumpy ride alongside the Lira with analysts citing the recent price swings as similar to the conditions witnessed during 2018’s Lira meltdown and subsequent spread to other EMs. Currency Turkish Lira Crashes 

Commenting on the potential for the Lira’s weakness to spill-over into other EMs, Wells Fargo strategist, Brendan McKenna, wrote “It looks like there is some contagion, mostly focused on the high beta currencies — the South African rand and the Brazilian real. That’s not that uncommon. Those currencies felt some pain after the lira crisis last year too.” Head of emerging-markets strategy, Jason Daw, at Societe Generale commented that high-beta EMs were the most vulnerable to spreading jitters, “The surge in FX swap points seems related to idiosyncratic factors in Turkey rather than a broader squeeze in dollar funding costs. With that said, investors are probably concerned that there could be some contagion to other EM currencies given the experience last year. High beta EM is most at risk from a deterioration in sentiment, but for Asia it is important to realize that the direct trade and financial linkages are very small.”

Senior strategist, Koon Chow, at Union Bancaire Privee expects the South African Rand to be particularly susceptible should the Lira plunge develop into a broader EM sell-off. Currency Turkish Lira Crashes 

Chow wrote “The impact is probably limited unless we see a trend depreciation of the lira. A one-off lira depreciation should not have, if it happened, much of an effect because we are in a climate of low Treasury yields and low volatility.”

Before adding, “Of course there is a risk of a knee-jerk impact given the price action across currencies in July and August last year. South Africa is most vulnerable because of its largish current account deficits.”

Some analysts expect a wider impact, with a whole class of EMs expected to be driven lower – however, this outcome is reliant on an assessment that the current headwinds facing the Turkish economy are in fact not idiosyncratic and instead the result of a potential global slowdown. senior market analyst at Oanda Corporation, Jeffrey Halley said that EMs “tend to move as a bloc, so quid pro quo, we should see EM tarred with the same brush here in Asia,” adding “Turkey is perhaps a symptom and not a cause. The main driver being off course, a potential global slowdown which the rally in developed bond markets has been telling us is in the way all year.” Other analysts were more upbeat on the Lira, expecting the current factors weighing on the currency to fade over forthcoming sessions as liquidity issues ease and local elections pass. Currency Turkish Lira Crashes 

EM fixed-income fund manager, Patrick Wacker, at UOD Asset management, wrote “We do not see contagion to other EM countries. This was a concern during Turkey’s FX crisis last year. Then as in now, we believe Turkey’s situation is unique.” Wacker added “While Turkish bonds are trading wide to their rating, we believe there may be a better entry point once we are past today’s reserves data and Sunday’s local elections.”

Similarly, Andrey Kuznetsov of Hermes Investment Management, expects the risks facing the Turkish Lira to be Lira/Turkey-specific, limiting the potential for spread. Kuznetsov said “Turkish volatility is entirely idiosyncratic and related to country specific events, such as the upcoming local elections.” He went on to add that emerging markets “benefit from more established financial markets and a dedicated investor base. Currency Turkish Lira Crashes 

The universe is no longer viewed as a homogeneous asset class, but rather a diverse group of countries with resilience to withstand a good amount of external volatility… Compared to the late 1990s when a crisis in one country or region could cause a meltdown in the broader universe, the situation is starkly dissimilar right now.”

Source : Elaine Housten

https://www.exchangerates.org.uk

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Polymers Petrochemicals R-PET Automotive 29-03-2019

  • China – Polyethylene Terephthalate

PET is steady, while its chain is assessed mixed.

  • Polyamide 6 and its chain are steady.

PET Bottle grade export 1,060/1,100 $/ton – PET Bottle grade domestic market 8,500/8,600 yuan/ton – PET Filament grade SD domestic market 7,700/7,800 yuan/ton – PET Filament grade BR domestic market 7,800/7,900 yuan/ton

PTA Taiwan 840/850 $/ton – PTA domestic market 6,550/6,650 yuan/ton – MEG $ 6,20/635 $/ton – MEG domestic market 4,950/5,050 yuan/ton – PX Korea 1,020/1,030 $/ton

POY 150D/48F  domestic market 8,950/9,050  yuan/ton – DTY 150D/48F  domestic market 10,550/10,650  yuan/ton – PSF domestic market 8,700/8,850  yuan/ton

Polymers Petrochemicals R-PET Automotive

After firming overnight, the Turkish Lira continued to incur losses in early Friday trading with the US Dollar to Lira exchange rate last seen trading at 5.63607, up 1.89% in favour of the Greenback.

Speaking late on Thursday, Finance Minister Berat Albayrak said Turkish banks had provided billions of Lira liquidity to FX markets and that market normalisations had begun.

Nevertheless, the overarching issues of US-Turkey tension remains prevalent leading some analysts to maintain a bearish outlook on the TRY.

Crude Oil Prices Trend

Lucozade Ribena Suntory is intensifying its sustainability programme by announcing the launch of an ambitious redesign project of its Ribena bottles.

Ribena was the first UK soft drink brand to use bottles made from 100% rPET

This is the company’s latest move to ensure all its packaging is fully recyclable within the UK’s current recycling infrastructure.

The manufacturer has appointed industrial design agency Seymour Powell to lead the redesign, following an in-depth agency pitch process which began in 2018.

Michelle Norman, Director of External Affairs and Sustainability at Lucozade Ribena Suntory said: “Lucozade Ribena Suntory takes its sustainability commitments very seriously and we are extremely proud to be announcing this packaging redesign to ensure our brands continue to be as sustainable as possible.”

The European Union’s (EU) proposal to introduce a 90% collection target for PET beverage bottles by 2029 is unlikely to be met without significant investment in infrastructure and waste management collection, according to Wood Mackenzie Chemicals.

Commenting on the directive, Isabelle Gilks, Wood Mackenzie Analyst, said: “The target placed on PET beverage bottles is arguably the most ambitious of those in the proposal.

To put this number into context, the 2017 European PET beverage bottle collection rate stood at an average of 58%. In volume terms, EU member states would need to collect twice as many bottles, by weight, in 2029 when compared to 2017.

Polymers Petrochemicals R-PET Automotive

Michael Tobias is the founder and principal of New York Engineers, an Inc 5000 Fastest Growing Company in America. He leads a team of 30+ mechanical, electrical, plumbing, and fire protection engineers from the company headquarters in New York City, and has led over 1,000 projects in New York, New Jersey, Pennsylvania, Connecticut, Florida, Maryland and California, as well as in Singapore and Malaysia.

A graduate of Georgia Tech class of 2004 with a Bachelor’s in Mechanical Engineering with honours, he is an advocate for green design and technologies, and has designed to both Passive House and Net 0 energy standards.

Oil prices have extended losses into a second straight session after an official data reported a rise in US crude stocks.

International Brent crude oil futures were down 20 cents at $67.63 a barrel, while US West Texas Intermediate (WTI) crude futures declined 23 cents at $59.18 per barrel, Reuters reported.

Oil prices came under pressure after US crude stocks witnessed an increase, although analysts pointed to support from efforts led by the Organization of the Petroleum Exporting Countries (OPEC) and non-affiliated members such as Russia, known as OPEC+, to cut production and increase prices.

Polyethylene Terephthalate is a resin, which is made by the combination of two monomers, purified terephthalic acid and modified Ethylene Glycol, to form a polymer called Polyethylene Terephthalate by esterification reaction.

It is mainly used in production of synthetic fibres, bottles, etc.

It is tough and temperature resistant.

The main difference between PET and Bio based PET is that the former uses non-biodegradable material in formation of PET and latter uses biodegradable material for producing the resultant polymer.

The Japanese parliament approved an extension of insurance coverage for imports of Iranian crude oil effective from the start of April and expiring a year later.

However, this does not mean Japanese refiners will continue buying Iranian crude if they do not score sanction waivers from Washington.

Reuters reports Japan’s parliament approved the import insurance extension yesterday.

Now, refiners are pressing the government to find a way to secure an extension to the waiver that Washington granted Tokyo and seven other importers in November.

Potential synergies are being explored between BiologiQ’s NuPlasticQ biopolymer and Dow’s PE resin portfolio

A new collaboration has been announced between Dow, Midland, Mich., and BioLogiQ, Idaho Falls, Idaho, to evaluate potential synergies between the latter’s novel NuPlastiQ plant-based biopolymer and Dow’s PE resin portfolio, in an effort to explore enhanced sustainable plastic options.

Dow and BioLogiQ will work together to test and consider potential applications that incorporate bio-based resins with PE, in the hopes of enabling more plant-based plastic products.

Seven-year-old startup BioLogiQ will utilize Dow’s industry-leading research and development, as well as the company’s extensive plastic resin sales and distribution network, to determine if they can successfully leverage plant-based plastics.

Every year around this time two things can be counted on: winter makes the official astronomical changeover to spring on the date of the equinox—though there’s frequently a disconnect between the calendar and the weather—and March Madness, i.e., the annual NCAA men’s basketball tournament field of 64 (or more) of the top teams, dominates sports coverage, chatter around many offices and generally reaches a feverish pitch.

Exactly like the college hoops tournament, PlasticsToday determines its March winners by performance, though the editorial “tournament” is based solely on a metrics analysis of top-read articles at the Packaging Channel for the period.

The beta PBT powder will be officially announced at AMUG next week

At the AMUG conference in Chicago next week, Dutch global sciences company Royal DSM will present a beta version of its new PBT powder product for 3D printing. The material marks the company’s first powder-based material for the additive manufacturing industry. Up until now, Royal DSM’s 3D printing portfolio has largely focused on polymer filaments and resins.

As a diamond sponsor of the annual AMUG conference, Royal DSM is preparing for a big showing next week. Not only will the company be unveiling a beta version of its first polymer powder for 3D printing, but DSM experts will also be presenting at various points during the event. Over the course of the conference, DSM plans to put an important emphasis on the sustainable potential of AM.

Company’s PET enzymatic recycling technology recognized for its patentability

Core process and technology protected until 2033

CARBIOS now holds 29 patent families worldwide, 11 related to PET recycling technology

“This patent strengthens our competitive position for the recycling of PET and it is gratifying to have the United States Patent and Trademark Office recognize the innovative nature of our proprietary technology.”

CARBIOS , a company pioneering new, bioindustrial solutions to reinvent the lifecycle of plastic and textile polymers, is pleased to announce that the United States Patent and Trademark Office (USPTO) has granted CARBIOS a patent on its proprietary process for PET recycling from plastic waste using enzymatic technology.

Techtextil is one of the most important exhibitions in the field of nonwovens and Dilo has participated since its inception in 1986. During a history of more than 100 years Dilo has always set new standards with technologies like Hyperpunch and DI-LOUR needling. These developments have opened new markets for nonwovens and raised the bar regarding quality and efficiency.

The development cycles in machine building cannot be measured in months. Therefore we are pleased that one of our latest developments in horizontal crosslappers, the “Hyperlayer” is now being installed in several spunlace production lines.

 

Philippine’s plastic situation is one of the worst, but thankfully, there is a glimmer of hope for the country’s plastic dilemma.

A group of students has discovered microorganisms that are capable of “eating” plastic in a hyper alkaline spring in Zambales in the southern area of the country. The discovery of the plastic-eating bacteria paves the way to developing a new approach in solving the plastic problem that the third world country is currently battling.

The study that led to the landmark discovery was conducted by researchers from the biology department of the University of the Philippines – Baguio where they uncovered four strains of bacteria that are proficient in biodegrading low-density polyethylene (LDPE), the kind of plastic typically used for plastic bags, cling wraps, shampoo bottles, and other single-use plastic containers.

The European Parliament has voted to ban problematic single-use plastic products across the EU in a bid to tackle plastic pollution.

The new Single-Use Plastic Directive, proposed by the European Commission (EC) last year and voted for by MEPs yesterday (27 March), will prevent the sale and use of 10 of the most polluting single-use plastic products on the EU market, including cotton bud sticks, cutlery, straws, stirrers and polystyrene containers, where alternatives exist. EU member states will have until 2021 to transpose the Directive into national legislation following the final adoption by the European Council of Ministers.

Just months after Shell Canada said it’s looking for a buyer for its refinery near Corunna, the Bloomberg news service is reporting the owners of Nova Chemicals are exploring options that may include the possible sale of a portion of the Canadian company.

Nova Chemicals, which has three production sites in St. Clair Township next to Sarnia, is owned by Abu Dhabi’s Mubadala Investments Co.

The Bloomberg report, based on people with knowledge of the situation, says Mubadala Investments is look at the possibility of selling a portion of Nova Chemicals to a Canadian pension fund or another chemical company.

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