Increased activity in food and beverage industry ion 2021 has boosted the demand for the PET bottle requirement where PET forms the staple for packaging. Sudden surge in consumption from downstream industries have pressured PET manufacturers to avail the material in the market. However, limited availability of upstream Purified Terephthalic Acid (PTA) across European markets have hampered production rates of PET.

Both PTA and PET imports have been restricted as North and South America dealt with production issues while Asian exports reaching European shores were hampered on the back of strong freight charges and port congestions across Asian ports.

Recycled Polyethylene Terephthalate (r-PET) production has also been severely hit by high energy and raw material costs. Converters were also found speculating over the situation of panic buying across North-western Europe. limited r-PET availability has further pressured the market dynamics of virgin PET.

As per ChemAnalyst, “PET market is expected to remain in a strong position throughout H1 of the first quarter as demand from downstream is likely to keep an upward pressure on the available volumes in the market. However, downstream users can expect some reprieve towards the end of Q1 or in early Q2 where stagnancy in supply along with improvement in production may stabilize prices.  Strong consumption of virgin PET amid constrained supply and limited availability of r-PET may deter MNCs like Coca Cola and Walmart to meet their recycling commitments.”