In India, the Polyethylene Terephthalate market is expanding due to consistent demand from downstream end users. The market price for PET has risen in India, owing to the record high crude oil price since 2008. Feedstock PTA and MEG prices have also increased in tandem with rising crude oil value. As per ChemAnalyst data, the price for PET resin in India was assessed at USD 1504/MT bottle grade during the first week of the month.
PET resin, an important commercial polymer, is moulded into plastic bottles and containers for packaging foods and beverages, personal care products, and a variety of other consumer products. Meanwhile, upstream prices have risen in the last two weeks, with raw material PTA and MEG prices rising the most. The global price of crude oil has reached around $109 per barrel. While demand for PET resins remains seasonally higher in the summer, the current ongoing Russia-Ukraine conflict has further increased the uncertainty for export demand in the wake of resolutely high freight charges. Buying appetite from end-users picked up this week in response to the tight demand for soft drinks following a shift in the weather. Furthermore, the skyrocketing upstream product has disrupted the pricing structure of PET resin value due to more expensive intermediatory products such as PTA, MEG, and paraxylene.
According to ChemAnalyst, “the cost of PET in India may anticipate increasing with flooding upstream crude oil prices. Feedstock PTA and MEG price is expected to surge due to the expanding utilization of Polyethylene Terephthalate in packaging convenient-sized soft drinks, juices, and water.”
