High Purchasing and Rising Feedstock Cost Increases the PET Resin Prices
- 07-Feb-2023 1:37 PM
- Journalist: Timothy Greene
Europe: PET (Polyethylene Terephthalate) Resin prices have been increasing across the globe due to increasing customer queries and rising quotations from the exporting market. Firmer Feedstock Paraxylene costs and export prices on a FOB China basis supported the cost of imported PET Resin price in Europe. However, this week, moderate demand, higher freight rates, and favorable upstream markets have supported downstream packaging prices.
This week, import prices increased marginally as a result of supportive upstream Paraxylene markets and a more stable market post-holiday environment in China. As stated by a player, the earliest shipping from China could be scheduled for March. This was yet another element boosting the pricing of PET Resin in Europe.
In Germany, producer's reported stability in domestic PET Resin prices during 3rd February, with prices settling at USD 1323/MT FD Hamburg. On the demand side, traders have observed an increase in buyer interest due to upward adjustments in the local PET Resin Bottle Grade prices. According to a market insider, our sales are doing well, and we have even gotten queries from irregular buyers as well. Also, buyers are aware of the price hike they quoted.
In the meantime, supply constraints and higher feedstock costs continued to sustain the PET Resin market. A dealer commented that a Malaysian producer is yet to resume operations, and their return may take some time. However, operational rates at China's packaging plants have significantly decreased during the Chinese New Year break. Chinese producers are increasing tariffs from 40% to 60-70% following the end of the holiday season. As for the downstream Packaging sector, concerns regarding the current unsatisfactory offtakes are being voiced by players.
In conclusion, market participants for PET Resin anticipate more increases in the following weeks. The pricing of PET Bottles continues to receive support from strong upstream and China's market recovery.