Asian Polyethylene Terephthalate prices slips in the latest assessment

After witnessing a continuous hike in the prices for three weeks, Polyethylene Terephthalate (PET) market dropped in the first week of April due to stable demand from the downstream food and beverage industry. The feedstock Purified Terephthalic Acid (PTA) market also declined by 1% on March 28. Thus, fluctuating markets in different territories mirroring demand from the respected domestic market has settled the price in China at USD 1479 FOB Wuhu as of April 1, 2022.

In China, a decline in the feedstock PTA trend and a downturn in demand for PET has resulted in the weakening of the PET market. The resurgence of covid cases in China has curtailed the consumption of beverage bottles as outdoor activities were restricted under covid protocols. In addition, the operating rate of the industries reduced as the stocking willingness from the downstream sectors was not strong. Later, China being the major exporter of PET have reduced its shipping due to the restriction on transporting the products to other countries.

In Europe, the PET market witnessed a stable marginal rise in its price due to firm demand from the downstream packaging industry. Manufacturers reported that rising feedstock paraxylene prices have contributed to the increased cost pressure on raw material PTA. Inline, snug domestic production of PTA and limited availability of imports from Asia has impacted the PET output. Thus, with a slight price increase, the PET market was assessed at USD 1861 FD Norwich (UK).

Prices for Polyethylene Terephthalate in the USA market have been stable for the last three weeks with low availability of feedstock PTA in the domestic market. USA depends largely on Mexican PTA exports to fulfil its domestic demand. Consequently, decreased imports of Purified Terephthalic Acid from Mexico and increased domestic consumption have resulted in marginal to stable increment in the price of PTA in the North American region. Therefore, following stability, the PET bottle Grade price settled at USD 2212 FAS Houston (USA).

As per the ChemAnalyst analysis, “the Polyethylene Terephthalate (PET) price may fluctuate in the global market accompanied by the changing trend of the PTA market. Further, constraint supply pattern of the feedstock Purified Terephthalic Acid (PTA) amidst the seasonal change may affect the value chain of PET with higher demand from consumer’s end. Hence, it has been expected that PET prices will remain firm globally.”