Polyethylene Terephthalate (PET) Resin Bottle Grade markets experienced another round of declines in June 2023 due to decreasing beverage consumption. European sellers had difficulty selling their high stocks due to unsatisfactory seasonal demand and buyers' propensity to purchase more import cargoes or recycled PET (R-PET) Resin at lower prices. As a result, the price of PET Resin deteriorated during the week ending 23rd June by USD 10/MT in the European market.

Meanwhile, in the R-PET market, the price for R-PET felt the pinch of lower virgin PET Resin prices in June. Additionally, R-PET prices have declined due to the high post-consumer bottles in the market. The rise in post-consumer bottles increased due to rising mobility after people started to spend more time outdoors.

In the European market, Virgin PET Resin consumption is heavily hit by the European central bank interest rate hike, cited as the main culprit behind unusual traditional patterns and changing consumer habits. Suppliers in the region had no choice but to reduce PET Resin prices further despite the high bottle season. This was because purchasing activity lowered, while traders pushed for further discounts for deliveries during summer vacations. In the meantime, lower-than-usual temperatures also weighed on the consumption of mineral water and soft drinks despite summer tourism. As a result, the PET Resin producers felt that the price cuts might normally lure buyers back to the market, but slow downstream consumption did not support the market.

In continuation to this, many traders and producers in the end-use industries of PET Resin had to trim their profit margins, which is a clear sign that there was limited demand even in the seasonal period. Henceforth, producers have been working to lower stocks by reducing operating rates. Lithuania's Neo Group reduced run rates further in June in response to weak demand.

At the same time, the players were switching to the R-PET due to the low-priced virgin PET Resin. Also, with the high availability of R-PET and lower market prices, many small enterprises were found to switch to the low-priced R-PET market. Plastics Recyclers Europe shared their concern regarding the rising need for recycled PET amid efforts to manufacture beverage bottles containing 25% recycled content by 2025 as part of the Single Use Plastics Directive.

As per the ChemAnalyst database, "The PET Resin Bottle Grade price may hike if the market experiences even marginal improvement in its demand during July amid warmer temperature."