For the Quarter Ending June 2023
North America
The prices for Polyethylene Terephthalate (PET) Resin Bottle Grade declined throughout the second Quarter of 2023 in the North American market. Downstream industries reduced operating rates and waited for demand to pick up and raw material prices to stabilize. Supply remained at normal levels as the supply of Purified Terephthalic Acid (PTA) increased. In the middle of the second quarter of 2023, supply was also affected by labor disruptions on the West Coast, which resulted in cargo ship delays and port congestion, but low demand from downstream industries weakened purchasing activity. Manufacturing activity also declined in the region due to sluggish purchasing activity amid high-interest rates and inflation, with FRED data also showing that the production price index in the US market fell to 245.83 in June 2023. Therefore, inflation and recessionary fear had a negative impact on consumer spending, which in turn had a negative effect on demand, as consumers tried to save money amid the uncertainty in the market. Finally, the price of PET resin was estimated at USD 1180/MT FAS Houston.
APAC
Polyethylene terephthalate (PET) prices rose during the first half of Q2 in the Asian market as the sudden announcement by an OPEC+ member to cut crude oil production by more than 1.6 million barrels per day in May pushed up global oil prices, which in turn led to a significant increase in raw material prices. However, demand from the downstream packaging sector has been mixed, although there was some improvement in the beverage and bottling sectors. Towards the end of the second quarter of 2023, PET resin prices declined due to weaker feedstock prices amid the fall in oil prices, which dragged the market down this week. In the upstream market, input costs decreased due to lower raw material PTA prices. According to market participants, there was no room for price increases as end-user demand was low, and packaging manufacturers and distributors were unable to raise downstream prices. According to data from Statistics Korea, the consumer price index remained unchanged at 111.12 in June 2023 as sluggish global demand weighed on the market. As a result, consumers reduced their spending, while companies reduced their selling pressure or kept it mostly stable to stimulate sales in the region. Finally, the price of PET was quoted at USD 915/MT FOB Busan.
Europe
The Polyethylene terephthalate (PET) bottle market in Europe has been sluggish throughout the second quarter of 2023 due to the fall in crude oil prices, which has had a negative impact on its derivative market. Analysts and industry experts attribute the slump to high levels of inventory in the packaging sector, which has led to fundamentally saturated demand. The macroeconomic environment was reflected in the fall in raw material costs for paraxylene and mono-ethylene glycol, suggesting lower consumption levels in Europe. Overall, despite lower demand, there was still room for growth in the beverage and bottling industry during the peak summer season. In addition, as beverage producers had already procured sufficient material at the beginning of May, they did not think of restocking as sales were lower than expected. Meanwhile, European monthly producer prices fell by 0.9% in May, highlighting the challenges faced by the economy in reviving demand and restoring economic growth. The closing price for PET Resin Bottle Grade was quoted at USD 1240/MT FD Antwerp.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Polyethylene Terephthalate (PET) Resin prices in the USA continued to decline due to low demand and adequate supplies. The operating rate was hampered, mainly because of the low availability of workers amidst rising labor, transportation, and other costs. However, this did not have a significant impact on pricing because demand from downstream industries was below average, and market participants were not considering advance procurement. Furthermore, due to slow demand and sufficient inventories, Alpha PET/Indorama Ventures Limited in Decatur Morgan Country, Alabama, shut down from February 1st, 2023, to February 10th, 2023, and reduced its operating rate from a total capacity of 37500 TPM to 24107 TPM. As a result, the price for PET bottles declined during the first quarter and settled at USD 1474 FAS Houston in March.
APAC
The first half of Q1 saw an increase in the price of Polyethylene Terephthalate (PET) Resin as the expected demand shifted with the approaching summer season in the Asia-Pacific region. Moreover, export demand picked up after China's Lunar New Year holiday. Following the holiday break, production rates increased rapidly, and demand from the downstream packaging industry also grew. Downstream beverage plant operating rates remained stable, reaching above 80% for the packaging material. However, the price trend reversed towards the end of the quarter as inventories grew, but downstream offtakes were still low. In February, Dragon Special Resins in Xiamen (China) was closed for maintenance from the 1st to the 31st of February, 2023.
Europe
The demand for Polyethylene Terephthalate (PET) Resin was on the decline during the first quarter of 2023, with low sales in the bottles and beverages industries. This was due to the sharp decrease in purchasing activity in the region, as output demands decreased and material availability improved. Furthermore, manufacturing output declined, and employment growth slowed down. Despite this, the German market had sufficient access to raw materials due to ideal refinery operating rates. In addition, the high inflation rate in Europe amidst the labor strike in the German market had an impact on the PET Resin market. Overall, the euro-zone PET Resin price declined, with JBF-RAK in Belgium closing its unit for maintenance from March 1st to March 31st, 2023.
For the Quarter Ending December 2022
North America
The market's excess inventory had pushed down Polyethylene Terephthalate (PET) prices while producers had cut operating rates and restricted new production. Nevertheless, there was a lot of market uncertainty lurking, which lowered demand and prevented a rebound. Meanwhile, Reduced demand from the beverage and bottling industries was the main factor contributing to the fall. As winter drew near, packaging industries' offtakes of PET bottles decreased as well in Q4. Although no plant shutdowns were discovered, DAK Americas and APG Polytech, LLC/FENC industries in the US continued to run smoothly. Throughout November, the cost of PET Bottle Grade remained steady at USD 1902/MT DDP West Coast.
APAC
In the fourth quarter of 2022, the domestic Polyethylene Terephthalate (PET) Resin price was constrained and weak. The main cause of the decline was decreased demand from the beverage and bottling industries. Overall, end-user demand was average, but small and medium-sized downstream customers mostly bought out of necessity. Early October 2022 saw Chongqing Ching lower its operating rate from 1.2 million Mt/year. Later, the logistics were slow in the second half of Q4 because of COVID-related restrictions. In addition, Jiashan Molai Trade Co., Ltd. and Shanghai Quyi Industry Co., Ltd. both saw an improvement in their profit margins in the third months of the quarter as a result of the delayed production, low stocks, and covid restrictions. Conclusively, the price for PET in China settled at USD 1147/MT FOB Wuhu during October.
Europe
The price of Polyethylene Terephthalate (PET) Bottles was decreased by 6 to 9% by PET Resin makers as feedstock PTA costs fell by 5.2% in the second half of Q4. The tendency toward decline was also aided by the muted demand from the packaging industries. Since the start of the winter season, sales of downstream beverages and water bottles have decreased, which has in turn contributed to the decline in PET bottle offtakes. While PET bottles were in extremely low demand on the domestic market, producers in Europe also recognized the inexpensive import material from China. As a result, it was discovered that the price was USD 1739/MT FD Hamburg in November.
For the Quarter Ending September 2022
North America
The third quarter of 2022 witnessed a declining market trend for PET (Polyethylene Terephthalate) Resin in the North American market. The feedstock PTA (Purified Terephthalic Acid) prices were tumbling till the first half of Q3, which further contributed to the decreasing trend to follow. Meanwhile, demand remained slow from the downstream packaging sector; thus, traders preferred emptying their stocks at cheaper rates. Further, demand was subdued due to the approaching end of the high bottle season and record-high inflation, weakening consumers’ confidence. As per the report, the quarterly review of the PET Bottle Grade market was mainly muted.
APAC
Following the global market situation, the PET Resin market in China also dipped throughout Q3. Meanwhile, the Indian market also witnessed a declining trend as a result of lower demand and weakened feedstock PTA prices. Further, the resurgence of Covid in the Chinese market affected the supply of the product, and the zero-tolerance policy during this pandemic also affected the Chinese economy badly. Thus, the overall slowdown in the economy continued to pull down polyethylene supply in China, which also negatively impacted the global market sentiments. A few manufacturers, such as Jiashan Molai Trading Co., Ltd., Shanghai Hongqi Plastic Technology Co., Ltd., and Shanghai Quyi Industrial Co., Ltd., also revised their offers foreseeing high inventories and weak demand.
Europe
The European market has showcased a mixed sentiment throughout the third quarter of 2022, with the market witnessing growth in the first half of Q3. Later, as the energy crisis rose over the market, the sentiments for major products declined, including PET bottles. The demand mainly comes from the packaging sector for water bottles and beverages. Since consumers were hesitant to make substantial purchases due to the rising gas and electricity prices on the European market, the bearish trend has persisted since the second part of August. Additionally, as the peak season for its end-use sectors was about to finish, Polyethylene Terephthalate (PET) producers had lowered their offers to sell out the available stocks, which led to a price decrement during September.
For the Quarter Ending June 2022
North America
Since the start of Q2, the market for Polyethylene Terephthalate (PET) kept increasing, owing to the firm Oil prices as OPEC+ producers struggle to meet their production quotas; Russia faces a ban on its oil due to the war in Ukraine. Therefore, owing to these factors, manufacturers in the US were forced to revise their margins, leading to a hike in price in this quarter. Furthermore, Healthy buying sentiments from the domestic and regional markets have positively impacted the prices of Polyethylene Terephthalate to boost. Later in the second half of Q2, low oil inventories, decreasing spare capacity, and the risk that supply growth will fall short of demand contribute to the upward trend in Polyethylene Terephthalate market prices. Therefore, considering the aforementioned reasons, the price rose by 3 % to 4% throughout this quarter and hovered around USD 2338/MT to USD 2411/MT FAS Houston.
APAC
In China, Polyethylene Terephthalate (PET) prices dropped throughout the quarter, aided by the restrictions in the Chinese market. During the second quarter, PET offtake from the food and beverages packaging industry fell, decreasing its price. The operating rate of many manufacturing units slowed down, while the average price of Crude oil-based feedstock Purified Terephthalic Acid and Mono-Ethylene glycol was dull. Therefore, considering these factors, the price for PET in China dipped and settled at USD 1255/MT Ex-Shanghai in June. In Contrast, the Indian market rose throughout the first half of Q2, as the demand for PET bottles picked up during the summer season. In addition, Reliance Industries Limited rose Ethylene Glycol prices in India due to the consistent firmness in the oil price. Thus, to conclude, the Indian market for PET was ruled by its feedstock, which remained high in Q2 and settled around INR 122040/MT to INR 121810/MT Ex-Depot Baddi in this quarter.
Europe
The Europe market remained volatile throughout the first half of Q2. This attribution came on the back of strong offtakes from packaging industries and Firm feedstock prices in the region. Feedstock Purified Terephthalic acid was rising, supported by the soaring crude oil prices. Furthermore, tight supply fundamentals, resolutely rising freight charges, and shipping costs amidst the Russia-Ukraine War had resulted in firm prices of PET in the regional market. From the demand side, offtakes from the beverage and bottling industry lifted the price trend in the domestic market. Meanwhile, the PET market dropped marginally in the second half, easing supply dynamics and sufficient stocking. Consequently, the price for Polyethylene Terephthalate (PET) hovered around USD 1807/MT FD Hamburg.
For the Quarter Ending March 2022
North America
In North America, Polyethylene Terephthalate (PET) market witnessed upward trend in first half which declined in early second half of Q1 2022. The rise in price was due to the consistent demand from downstream users as PET forms a staple for beverage bottles whereas Purified Terephthalic Acid (PTA) market witnessed contrasting trend where PTA prices rose in first and later months of Q1 and declined in second half of Q1. US dependency on Mexico for its PTA imports and its production disruptions in Mexico had manifested in curtailed PET operating rates in USA and thereby, in strong surge in prices in the later months of Q1. After the conclusion of Q1, PET prices were assessed at USD 2060 per MT on FOB basis.
Asia Pacific
Polyethylene Terephthalate (PET) market continuously rose in India in the first quarter owing to the high demand from packaging and textile industries. The speculations around the global crude oil supply were unable to ease hence crude oil prices was trending upwards since the beginning of Ukraine-Russia conflict affected its derivatives paraxylene and Purified Terephthalic Acid (PTA) market. This had caused overall cost pressure on key value chains including Polyethylene Terephthalate. Thus, PET price rose significantly and were assessed at USD1972.28/MT (INR 149780/MT). In China, PET market flourished throughout the first quarter with declined operating rate due to curtailed availability of feedstock PTA where two PTA plants had observed decline in production rate and another plant went offline in later half of Q1 2022. From demand side, plastic bottles demand stood stronger backed by seasonal change hitting Asia-Pacific region. During Q1, PET price in China was assessed at USD 1381-1415 per MT FOB-Wuhu.
Europe
PET market in the European region remained strong throughout the quarter on the back of robust demand and firm cost pressure from PTA. Purified Terephthalic Acid (PTA) availability remained curtailed during Q1 which put inflationary pressure on the available material. In February, Manufacturers also reported that rising feedstock prices amidst the ongoing war between Russia-Ukraine have culminated into the hike of the price. Downstream industries too operated normally with high demand packaging industry. Later, with logistics constraints the demand for the product in the domestic market dipped in H2 of Q1, but the overall market rose as the demand for PET bottles remained healthy in the domestic market. The price for PET in Europe saw upward trend and got assessed at USD 1815 FD South Hampton.
For the Quarter Ending December 2021
North America
Downstream bottle demand followed the trend of previous quarter and it remained strong throughout Q4. Consequently, there was demand pressure over PET resin from packaging and other allied sectors. While PE and PP demand eased in the later stages of the year, PET consumption volumes increased in the last quarter. Limited availability of imports from Mexico as DAK Americas announced force majeure in Mexico further pressured the domestically available material. Imports from Asia also remain limited in the wake of resolutely high freight charges. Polyethylene Terephthalate price in December were assessed at USD 1900 per MT on FOB basis.
APAC
Domestic PET prices climbed in the beginning of Q4 as import prices rose significantly which resulted in an upward price trend and prices were assessed at INR 97600 per MT Ex-Depot Baddi in late October. However, PET values weakened towards H2 of Q4 as the demand for the product turned feeble post the festive season in India. Besides, weak values of upstream Ethylene and seasonal lull in the demand pattern have further caused a decline in the prices of the product. PET Bottle grade prices further dwindled to INR 101000 per MT in December. In China, Polyethylene Terephthalate market followed a similar pattern where demand influx in early parts of Q4 increased the prices of Polyethylene Terephthalate however demand deterioration towards late Q4 culminated into slump in prices. In December, Polyethylene Terephthalate (PET) price in China was assessed at USD 1045 per MT on CFR basis.
Europe
PET resin market measure incredible growth where prices of Polyethylene Terephthalate (PET) crossed Euro 1500 per MT on FD basis for the first time in more than 10 years. Demand from downstream users remained strong where consumers struggled throughout the quarter in order to secure their material. Recycled PET production has also remained dull which further increased the dependence on virgin PET. Limited domestic production of PTA and unavailability of imports from Asia exacerbated the production and culminated in below-par operating rates curtailing complete supply chain. Manufacturers also reported that rising feedstock prices have contributed to the increased cost pressure on PET.
For the Quarter Ending September 2021
North America
Imports of feedstock Purified Terephthalic Acid (PTA) improved during Q3 in comparison to previous quarters where imports were highly constrained on the back of declining production rates in Mexico. Increased availability of feedstock translated into improved production rates for PET. Domestically, DAK Americas, a key producer opted to shut down its Bay St Louis site in Mississippi which has production capacity of 65 KTPA in the aftermath of hurricane Ida in late August and early September. Demand for PET remained robust caused by increased demand of PET bottles as summer hit its peak and covid restrictions eased in USA. Prices remained firm in the range USD 1650 -1710 per MT on DDP basis in USA.
Asia
Decline in feedstock PTA trend along with downturn in the demand for PET has resulted in weakening of PET prices in Q3. Consumption of PTA has decreased after firm intakes in earlier quarters. Resurgence of covid cases in Asia has curtailed the consumption of beverage bottles as outdoor activities were restricted under covid protocols. Traders were witnessed having a cautious approach towards the market developments as queries for the material decreased. This has resulted in decrement in prices of PET where last it was assessed at USD 1050-1100 per MT on FOB basis.
Europe
European PET market remained tight mirroring the pattern of earlier quarters. European petrochemical industry continued its struggle with resolutely high shipping charges and limited availability of containers also impacted PTA imports to Europe. Furthermore, reduced imports of PTA hamstrung PET production and therefore resulting in tightened supply fundamentals. Demand for the material remained firm as key economies on the back of successful vaccination drives have increased outdoor activities and eased pandemic protocols. This in turn have increased demand for PET bottles. Inventory levels remained weak, remarked several market participants as Q1 and Q2 were healthy in terms of PET demand.
For the Quarter Ending June 2021
North America
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.
Asia
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.
Europe
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
North America
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.
Asia
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
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
North America
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.
Asia
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.
Europe
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.
