In the European market, the price for Polyethylene Terephthalate (PET) Resin has stabilized during the third week of September after witnessing a rebound in the previous week. Rising costs have been the major pressure point, which propelled spot PET Resin markets higher during the previous week of September. This shift in the PET Resin market direction came after a prolonged period of decline and is largely bolstered by the healthy cost support originating from the upstream Crude Oil and Purified Terephthalic Acid (PTA) market.

The major driving force for this positive momentum in PET Resin September prices can be attributed to a strong performance in the upstream chain rather than a surge in robust buying enthusiasm. In the upstream market, the PTA market gathered momentum during this period, largely influenced by the escalating costs of upstream Naphtha. Furthermore, the cost support from the oil prices was also a contributing factor, which experienced a notable increase, surpassing 1%, as concerns regarding weak US shale output compounded supply apprehensions that stemmed from extended production cuts by major oil-producing nations such as Saudi Arabia and Russia.

Meanwhile, in the downstream Packaging markets, the demand for PET Resin Bottle Grade remained lackluster, primarily due to the typical seasonal slowdown experienced during the summer months and persistently unfavorable macroeconomic conditions. Meanwhile, the apprehension regarding a potential recession loomed large in Germany, especially considering the sharp increase in oil prices. The consumer price index also indicated a noticeable rise from July 2023 to August 2023, settling at 2.4, up from the previous month's figure of 1.7. This marked increase underscores mounting inflationary pressures and their continued impact on consumer prices. On a positive note, there was an observable improvement in manufacturing activity within the region.

In the Asian PET Resin markets, a trend of stability to softness that commenced in early September has prevailed throughout the week. The primary driver behind these weekly losses in spot PET Resin prices has been the persistently sluggish demand, coupled with an increase in supply, which has overshadowed any potential support from the upstream sector.

Considering all these factors, ChemAnalyst forecasted that the price of PET Resin is poised to increase in the forthcoming weeks. This increase can be largely attributed to the strong cost support from the upstream market, coupled with a mild uptick in Asian PET Resin consumption anticipated during the festive season. Therefore, there is a positive outlook for the PET Resin market in the upcoming weeks.