Hamburg, Germany: The declining demand from the downstream market is grunting the European Polyethylene Terephthalate (PET) sectors. Despite the fluctuation in crude oil prices, Polyethylene Terephthalate (PET) bottle prices saw a downward movement as geopolitical instability and record-high inflation keep demand below seasonal expectations.

In August, Polyethylene Terephthalate (PET) demand somewhat remained on the lower side while the supply chain improved. In the earlier weeks of August, Polyethylene Terephthalate (PET) prices were stagnant. The producer’s price revision came after three weeks of stability. Therefore, considering the higher inventories and reduced demand, the Polyethylene Terephthalate (PET) market was mainly on the downside. Thus, towards the end of the month, producers failed to keep their rollover prices as the outlook for the Polyethylene Terephthalate market appeared to be decreasing in the last week.

Regarding imports, trusted sources attributed downward revisions to a lack of buying interest for import cargoes despite easing freight rates. Few buyers preferred not to purchase Chinese materials owing to long shipment times. At the same time, few orders for Polyethylene Terephthalate (PET) came from other Asian countries amid weak Euro-USD uniformity.

Furthermore, Players were cautiously operating their units with fluctuating Feedstock prices. Sporadic demand and conscious market sentiments ruined the purchase of bulk materials. Moreover, the market has been well-supplied despite a lack of imports. Bearish expectations also prompted buyers to wait on the sidelines. While restocking activity was slower than usual during the high bottle season, some sources even lowered their run rates in the bottle sector, foreseeing a lull in market fundamentals.

According to ChemAnalyst Database, “The Polyethylene Terephthalate (PET) market may extend its losses into September considering the above-mentioned bearish factors. However, high gas and electricity costs may push suppliers to limit the extent of potential drops in order to protect their margins”.