For the Quarter Ending June 2021
Prices of Polyethylene Terephthalate (PET) kept rising in USA during Q2 2021, backed by firm demand and high logistics cost. Buyers in USA revealed that the price of PET rose with increase in global shipping rates due to the trade destruction caused by pandemic in major Asian countries. Besides, overall inventory level was already low in the meantime due to the devastation during previous quarter in the Gulf of USA, which led to material shortage in the country. However, high freight cost provided opportunities to domestic manufacturers, as they also revised their prices and extended margins at times of low availability. Therefore, a steep rise in price of PET was observed in USA which revolved around USD 1705/MT during last week of June in Texas.
Muted demand in the Indian market, created overall market dullness in Asia during this quarter. While in China, prices increased effectively by the end of June, which later started declining due to slacked demand from pandemic hit countries. Meanwhile, Indian market experienced bearish market sentiments due to dented demand under pandemic mayhem in the country, where abundant availability also supported this downward trajectory in prices of PET. However, during April prices of PET rose due to scarcity of material and stable demand from domestic market under arrival of summer season. Therefore, the price of PET accessed at USD 885/MT (film grade) and USD 932/MT (bottle grade) during first week of June in India.
PET price in Europe remained dull throughout the quarter, backed by dented demand and abundant stock availability in the major countries. The demand remained lower than expected in major European countries, where buyers revealed that either the seasonal demand has been postponed or is passing through bearish sentiments. Therefore, a sharp decline in price of PET was observed in Europe during this quarter.
For the Quarter Ending March 2021
Amidst winter storm disruptions, when most of the Texas production facilities were down, demand for PET across the region witnessed consistent increment every month. Robust demand for PET from packaging, container, and bottle manufacturers amidst insufficient supplies made the prices to witness tremendous surge during the session. Consequently, prices of PET across Ohio and Texas rose by 5.46% and 5.38% and settled at USD 1410 per MT and USD 1565 per MT respectively. Meanwhile, apart from extreme cold conditions across US gulf, reduced supply from Mexico due to local shortage also impacted the prices of PET in North America during this quarter.
In the Asian market, domestic PET demand remained firm and domestic manufacturers continued their operations efficiently despite of having tight feedstock supply. In China, exports demand deemed very high, meanwhile Indian government imposed an antidumping duty on different grades of PET coming from China. Although the prices of PET in China showcased rise with each passing week, FOB price of PET at Quingdao China rose from USD 907/MT (January 2021) to USD 1008/MT (March 2021). After this antidumping duty, sentiments of Indian manufacturers boomed, as they caried out a rise in prices of PET across the country while receiving a firm demand from domestic market.
Europe had to face tight availability of PET for domestic market while receiving strong export demand from other countries. US winter freeze disrupted the trade activities across Europe and reduced the availability of PET across the region. Container shortages across Asia Europe Trade route also impacted the market and pushed the prices up, the free delivery PET prices across North west Europe were marked at USD 965.53 per MT during this session.
For the Quarter Ending September 2020
Polyethylene Terephthalate (PET) supply across Asia was relatively stable in comparison to the previous quarter. Majority Chinese manufacturers maintained their production levels to cater to the surged demand for PET from India and other Asian countries. Whereas there were several manufacturers like Sanfame Group that maintained low operating rates amidst fears of ongoing demand uncertainties. During the initial days of Coronavirus outbreak, even though the demand was expected to increase in the bottled water and sanitizer demand, the demand in other applications such as packaging of fruit juice and carbonated soft drinks decreased. Asian production output of Polyethylene Terephthalate (PET) is expected to be relatively high in the Q4 as downstream industries are heard increasing their production to make up for the loss incurred in the previous quarter.
Polyethylene Terephthalate (PET) prices in North America were stable in Q3 due to healthy demand of virgin PET amidst its robust consumption in food and beverage industry. Thus, sales of PET resin in packaging of sanitizing and cleaning products were on boom in Q3. Bulk-buying of PET led to unseasonal demand in North America. Many buyers secured huge contracts at lower prices during September. In comparison to Q1 and Q2 where the demand level of the resins declined due to slow economic growth, US-China tariffs war and plunging oil prices, the demand reached stability in Q3 2020. It has also been observed that the consumer preference is shifting towards food and packaging industry following the requirement of untouched packaged food.
The third quarter Polyethylene Terephthalate (PET) demand in Europe witnessed comparatively priced imports. Countries like Italy and The Balkans received high PET imports in September and October. Weaker US dollar versus the euro and severe weather conditions in US derailed the prices of the raw material i.e., MEG. It was heard that Alpek Polyester UK is planning to shut its 150 KT/year PET plant. While major manufacturers of Polyethylene Terephthalate (PET) like JBF and Indorama Ventures were able to maintain high production levels. The Covid-19 pandemic has potentially boosted the demand of single use plastic packaging subsequently increasing the demand and prices of Polyethylene Terephthalate in Europe.