In October 2024, the global market for Polyethylene Terephthalate (PET) experienced a noticeable decline in prices, primarily driven by weak off-take and insufficient support from feedstock costs. This downward trend has been evident across various regions, highlighting the challenges facing the PET industry.

In the US market, PET resin prices dropped by 6.2% since the start of the month. This decline can be attributed to low production costs domestically. Concurrently, prices for essential feedstock Mono Ethylene Glycol (MEG) decreased by 1.1%, while Purified Terephthalic Acid (PTA) prices plummeted by approximately 6.3% on October 18. Oversupply, rising inventories, and a slowdown in downstream demand for plastics dampened market sentiment, overshadowing any signals of recovery. Despite initial trading activity suggesting a seasonal rebound, the PTA market encountered significant hurdles throughout October.

Additionally, the closure of several manufacturing units in early October, including major players like M&G Chemicals, DAK Americas, and Indorama Ventures Limited, due to Hurricane impacts, did not alleviate the situation. Even with these closures, ample inventory levels persisted, largely due to high-volume imports from the Asian market at competitive prices. Furthermore, the ongoing strike by union dock workers at East Coast and Gulf ports disrupted operations, complicating supply chains across the US, particularly affecting the PET sector. However, despite these disruptions, PET inventory levels remained sufficient in the region. On the demand side, the PET market has experienced moderate demand but has been hindered by a lack of new orders, reflecting low purchasing sentiment and minimal buying activity.

In the German market, PET prices also saw a decline of 3.2% since the early week of October. This depreciation was driven by low production costs and limited downstream inquiries during this period. MEG prices in Germany fell by 3.0%, while PTA prices decreased by 5.9%, attributable to the typical seasonal lull in market activity. Supply for PET remained abundant, but demand was notably restricted.

In the APAC region, particularly in China, PET prices declined slightly by 0.5%. The behavior of the PET market in China was mixed during October. After an initial drop of 1.6% in the early week due to low production costs and average offtake, PET prices surged by 2.1% in the second week, primarily influenced by changes in feedstock costs. Overall, the region maintained ample inventory levels; however, demand remained below expectations, and the post-holiday market was notably sluggish.

Analysts anticipates that upcoming periods may see shifts in PET prices in China, driven by increasing demand from overseas markets, particularly India, ahead of the festive season. In contrast, the US market is expected to remain flat, while the German market may continue to experience a downward trend in prices, influenced by low feedstock costs and limited downstream demand.