Global PET Market Continues on an Optimistic Run, Prices to Soar Further

Polyethylene Terephthalate market has continued its bullish rally in the 2nd week of March 2022 owing to strong demand fundamentals and stable to weak supply dynamics globally. Polyethylene market has been firm in the past couple of months, and the recent price increase has ensured limited to no reprieve for Polyethylene terephthalate buyers in the short term.

Polyethylene terephthalate (PET) market has been firm in the European market, where prices continue to move northwards on the back of solid demand push and snug supply amid rising cost pressure from upstream olefins and others. Feedstock Purified Terephthalic acid (PTA) prices have also been high in the domestic market. Meanwhile, imports of PTA have become costly as speculations around global chains discouraged exporters from sending material on European shores amid rising prices freight charges. Consequently, Polyethylene Terephthalate prices were assessed at USD 1750 per MT on FD basis, gaining 5% since the last assessment.

In the USA, Polyethylene Terephthalate market has also observed a strong uptrend as PET prices crossed USD 2215 per MT mark after increasing by USD 60 per MT on FOB basis. Meanwhile, feedstock PTA prices have been firm due to strong crude oil and derivative prices in the US market. Imports from Mexico have improved in this quarter. However, healthy energy costs left limited space for price normalization, and consequently, Mexican exports have also been costly, increasing the overall cost of production. On the demand side, the packaging industry gains momentum as food and beverage consumption moves northwards.

In the Asian market, Polyethylene terephthalate prices have also been firm owing to strong demand fundamentals and rising cost pressure from upstream PTA. Consumption levels from the packaging industry have been robust as the food and beverage industry has increased volume intakes of PET bottles as the Northern hemisphere welcomes the summer season. Hence, as of the 2nd week of March, Polyethylene terephthalate prices were assessed at USD 1280 per MT on CFR basis in China. In India, Polyethylene terephthalate prices were assessed at USD 1420 per MT on CFR basis, gaining 4.5% in the last couple of weeks.

Meanwhile, r-PET supply continues to be snug in the European market, which deals with low PCB (Post-Consumer Bales) collection and deteriorating PCB quality. This has increased the demand pressure solely on virgin Polyethylene terephthalate and, consequently, a sharp increase in Polyethylene terephthalate prices.

As per ChemAnalyst, “Polyethylene terephthalate market is expected to remain in the uptrend in the coming weeks as growing demand is likely to outpace snug supply fundamentals. However, the recent decline in crude oil prices may signify another change in the derivative market that will normalize the surging Polyethylene Terephthalate prices.”