European Polyethylene terephthalate Prices continue to assess over USD 1700/MT, US PET in excess of USD 2000/MT

Polyethylene terephthalate prices continue to strengthen in both Europe and US market owing to strong offtakes and stable feedstock prices in both the region. Polyethylene terephthalate prices have been robust since the beginning of the year and incessant rise in Q4 culminated in record prices for bottle grade Polyethylene terephthalate in the West.

Polyethylene terephthalate prices in Europe were assessed at Euro 1510 per MT (USD 1715 per MT) on FD basis while FOB prices of Polyethylene terephthalate in USA were assessed at USD 2030 per MT on Friday (18^th February 2022).

Polyethylene terephthalate forms staple for food and beverage packaging and increasing economic activities have resulted in increased consumption of Polyethylene terephthalate bottles in the Western countries. Spot availability has improved comparatively in Q1 2022 however any drastic change is yet to seen in Europe and US.

Feedstock Purified Terephthalic Acid (PTA) has been in the short supply in last few months which has resulted in snug Polyethylene terephthalate production. PTA import dependency of both European nations and US has been at the fulcrum of recent price surge in Polyethylene terephthalate. US rely heavily on Mexico for its PTA imports however recent PTA production disruptions in Mexico has manifested in curtailed Polyethylene terephthalate operating rates in USA and thereby, in strong surge in prices. European region mainly depends on Asian countries for their PTA demand and resolutely high freight charges and shipping costs have hampered PTA supply on the European shores.

As per ChemAnalyst, “PTA supply has improved since the beginning of the year as production rates have improved amid easing freight situation globally. This may result in ease in prices of Polyethylene terephthalate in the West however upcoming months have been termed as peak consumption season for Polyethylene terephthalate which may result in another spike in Polyethylene terephthalate prices as current inventory levels are yet underwhelming and may not cover another surge in demand.”