Qingdao, China: Asian Polyethylene Terephthalate market remained stable to low despite the increasing crude oil prices. Demand from the downstream bottle and textile industries softens on the back of easing feedstock Purified Terephthalic Acid market. Further, limited availability cushioned the impact of falling Feedstock prices alongside weak buying sentiment from the domestic market.

On 2nd June, several market participants reported a rollover in prices from the previous week, with crude oil fluctuation daily. Its demand from the downstream mineral water packaging industry is expected to remain high with warmer temperatures in Asian countries.

A Shanghai-based supplier has kept Polyethylene Terephthalate prices unchanged owing to the substantial cost support as oil prices have stayed on the uptrend, but demand hasn't improved much. He said, "As the summer season approaches, demand in the USA is strong, while demand in Southeast Asia remains weak."

The feedstock Purified Terephthalic Acid prices have eased, and Mono-Ethylene Glycol prices have stabilized even with volatile crude oil prices. On Thursday, Crude oil prices dipped by 2% and rested at USD 112.33/barrel after reaching USD 116.08/barrel on Wednesday. Meanwhile, Purified Terephthalic Acid import prices fell by USD 20/ton to USD 975/ton, while Mono-Ethylene Glycol prices were stable at USD 620/ton in China.

In addition, the reopening of Shanghai from the Covid-19 lockdown is anticipated to show momentum in demand from the downstream Beverage and packaging industry. This could further be supported by the changing scenario in the crude oil market, which may contribute to the increasing price of its feedstock, Purified Terephthalic Acid and Mono-Ethylene Glycol. Constraint supply may also lead to a peripheral rise in the Polyethylene Terephthalate market price.

As Per ChemAnalyst's prediction, "The demand sentiments are particularly to improve in North America and Asian countries owing to the warmer temperature and tourism boost, which would augment the demand for cold drinks packaged in Polyethylene Terephthalate bottles. Therefore, buying appetite may increase in the month of June, mainly from the USA.