In Europe, domestic producers have kept their Polyethylene Terephthalate (PET) resin prices down for the past three weeks. Alongside decreasing feedstock costs, PET resin bottle prices in Germany dropped below the USD 37/tonne and hovered at USD 1576/MT FD Hamburg at the week ending on 16th December. Regarding the packaging sectors, despite differing demand perceptions, the overall market optimism has still been constrained by weakening cost pressure and softer demand. In addition, as the holiday season approaches in Europe, demand has decreased even further.

PET resin demand has decreased along with sales in the bottles and beverages industries as a result of the ongoing winter season. The price cap on natural gas has also helped to stabilize the market and lower prices because European Union energy ministers had agreed to cap gas prices to try lowering gas prices. Also, prices for feedstock Paraxylene have been perceived to be falling because Europe is averting a disastrous energy crisis and maintaining a balanced natural gas market.

Additionally, supply chains operate smoothly, providing a consistent flow of PET resin into the European market, acknowledging the less occupied yards and congested ports. As a result, the current PET resin inventories can readily meet demand from the downstream industries. In conclusion, a number of variables contribute to PET resin's declining market value in the European market, including lower demand, declining natural gas costs, and the resolution of supply chain concerns.

Conclusively, ChemAnalyst anticipates a declining price trend for PET resin, which may continue in the upcoming weeks. It is anticipated that in the following weeks, falling natural gas costs and negative market sentiment will further drive down the price of PET resin. Additionally, because December is a destocking month, manufacturers are more likely to accept a lower price for their goods, which would ultimately cut the cost of PET resin in the upcoming weeks.