Europe Sees a Gloomy Start for the Polyethylene Terephthalate (PET) Market in Early September

In early September, the Polyethylene Terephthalate (PET) market in Northwest Europe appeared to be declining due to stable supply and lower feedstock prices. The bearish trend continued from the second half of August, as consumers were reluctant to make significant purchases due to the European market's rising gas and electricity prices. Also, Polyethylene Terephthalate (PET) suppliers have been reducing their offers in order to sell out the available stocks as the peak season for its end-use industries is about to end.

Another European distributor reported declining prices for Polyethylene Terephthalate (PET)  after the significant decline seen in the second half of August amid stable feedstock costs and steady demand. In the European market, consumers had also chosen to secure some materials from overseas as prices for products with Chinese origins were falling.

Meanwhile, the Polyethylene Terephthalate (PET) demand has weakened; according to traders in Central Europe, "The hot summers helped the beverage industry's demand, but other industries saw a fall in consumption as a result of the local inflation." They further stated that, given decreasing freight costs from Asia, Polyethylene Terephthalate (PET) prices might continue to fall over the weeks, especially in the import sector.

Meanwhile, the Polyethylene Terephthalate (PET) market observed weaker sentiments in China, as prices fell by 1.79% starting September. At the same time, with the restart of Chengold and the new opening of the Sichuan Hanjiang New Material factory, China's Polyethylene Terephthalate (PET) supply and demand dynamics may improve, and the price may witness more stability.

As per ChemAnalyst Database, "The Polyethylene Terephthalate (PET) market may remain stable at its current levels or see a slight improvement in the following weeks, especially due to the hikes in natural gas and electricity prices in Europe, which may affect production units. Thus, more attention must be paid to production cost, expected to affect both producers and consumers."