Global PET Price Trends in Early July: Stability in US and Asia, Rises in European Market

In early July, PET prices maintained their previous trends in the Americas and APAC, while it experienced an upward shift in European countries.

In Germany, PET prices rose by 1.5% in the week ending July 5th, driven by higher feedstock prices and supply disruptions. Raw materials MEG prices remained stable, while PTA prices increased by 1% due to a strong crude oil market. Domestic demand surged unexpectedly due to insufficient material supply, creating pressure on existing inventory. Early in the month, consumer confidence in Germany remained stable, supporting consistent PET demand from the downstream industry. Additionally, the Federal Statistical Office reported a slight decline in German inflation to 2.2% year-on-year for June, down from 2.4% in May, driven by lower goods inflation and reduced energy costs. The strong labor market, with a 6.4% unemployment rate in May, bolstered household purchasing power and consumption, further supporting economic activity. Meanwhile, PET supply in Germany remained restricted due to low port inventory and domestic supply disruptions. Strikes by the trade union ver.di at the Wilhemshaven terminal, part of wage negotiations, impacted operations and logistics. Logistics firms managed potential disruptions, advising customers to expect delays. The outcome of ongoing negotiations, including demands for higher wages and bonuses, influenced shipping schedules and logistics planning.

In the Asian PET market, prices remained balanced, underpinned by consistent regional demand. Buyers, well-versed in market intricacies, maintained steady orders supported by moderate end-user sectors. Suppliers and manufacturers responded swiftly, aligning production precisely to meet market requirements and stabilize prices effectively. Concurrently, PET feedstock PTA prices remained steady amidst a downturn in the polyester chain, while narrowing paraxylene spreads reflected constraints in the supply chain. MEG prices saw an upturn driven by reduced inventories at East China's main ports, declining by approximately 8.2% to 704,000 tonnes by June 28th, buoyed by increased daily offtake and reinforced by low international imports and higher crude oil costs.

In early July 2024, the U.S. PET resin market maintained a stable pricing trend due to subdued downstream demand and reduced consumer confidence. Suppliers kept production rates steady and managed inventory to meet moderate market needs. Balanced PTA feedstock prices supported this stability, while MEG feedstock prices saw a 2.1% increase driven by low coastal inventory and strong crude oil market conditions. PET supply remained plentiful, with downstream users continuing average replenishment despite notable supply disruptions both domestically and globally. Domestic production rates were reduced to align with underperforming downstream demand, preventing stockpiling. The demand for PET resin from sectors like PET bottles and food packaging remained subdued due to low consumer spending sentiment and high interest rates, leading to moderate procurement in the U.S. market. However, there is speculation that demand may increase in the latter half of Q3 2024, potentially boosting market activity.

Conclusively, analysts anticipate that PET prices are likely to remain stable in the U.S. market, surge in APAC, and cool in the European region, in the coming weeks, influenced by factors including supply, demand, and inventory levels.