Increasing Purified Terephthalic Acid Cost Pressure Send Wave of Optimism in India Polyethylene Terephthalate Market
- 02-Feb-2022 1:44 PM
- Journalist: Jai Sen
After a sluggish end to 2021, Indian Polyethylene Terephthalate (PET) market has shown early signs of recovery on the back of strong feedstock Purified Terephthalic Acid (PTA) values in 2022. Both Purified Terephthalic Acid and Polyethylene Terephthalate markets have gained significantly in early assessments of Q1 2022.
Purified Terephthalic Acid prices have increased by 3.5% in the last week of January since the conclusion of Q4 2021 on Ex-location basis while Polyethylene Terephthalate market has risen by 6.7%. Increasing cost pressure from PTA has prompted market participants to opt for price spike in Polyethylene Terephthalate values.
Improvement in feedstock Purified Terephthalic Acid has been termed as timely by several market participants after sluggish Q4 2021 where market observed significant deterioration in values. Market participants have been revelling in the bullish rally of Purified Terephthalic Acid values and are optimistic about Polyethylene Terephthalate market.
Meanwhile, demand for Polyethylene Terephthalate bottles has been stable in the domestic market as food and beverage industry continue to keep the consumption levels firm in the peaking winter season. Inventory levels are healthy in the market as remarked by several market participants due to weak destocking activities in December.
As per ChemAnalyst, “Feedstock Purified Terephthalic Acid market is likely to gain further in coming months as downstream Polyethylene Terephthalate is expected to gain traction in coming months. Traditionally, it has been observed that spring season will bring improvement in demand of Polyethylene Terephthalate bottles as food and beverage industry witness optimistic change in consumption levels after winter slumber. ”