Wuhu, China: The last few months have been a rollercoaster for the Chinese plastic industry with uncertainty around the supply and demand of material. The resurgence of Covid-19 slanged the market for PET which is perceived to rebound recently alongside increasing feedstock Purified Terephthalic Acid market. Why would both Polyethylene Terephthalate and Purified Terephthalic Acid market regain? It remains a big question amongst the manufacturers and consumers.

Millions of people in Southeast Asia and East Asia are under a heat watch this week as a massive heatwave becomes unbearable. The continuous soaring temperature in the Asia-pacific region surges demand for plastic bottles. Alongside seasonal demand, its market is also majorly driven by crude oil prices, Gaps in Demand and Supply, Government regulations, etc.

According to the sources of ChemAnalyst based in Wuhu, "the upstream Purified Terephthalic Acid production rate reduced, and the start-up operation is less than 75%. Whereas Crude oil continued to oscillate at a high level, affected by the reduction in supply, strengthened the support for Purified Terephthalic acid costs."

Talking about the primary derivative, Crude oil, which remains volatile even after "Saudi Aramco's" reduction in its oil export prices for China, the fluctuations in crude oil prices globally directly impacts the PET manufacturing industry.

Since the lockdown, manufacturers have been destocking their inventories, which is still haphazard in gaining momentum. Downstream Polyethylene Terephthalate could be seen up swinging with ease in market activity.

As surveyed, " The Polyethylene Terephthalate market is ramping up in response to changes in its derivative markets: Crude oil and Purified Terephthalic Acid."

ChemAnalyst too predicted, "The global uncertainty about the volatile market trend of Crude oil, the fluctuating atmosphere in European countries along with the resurgence of Covid in a sporadic manner may govern the market for Polyethylene Terephthalate, anticipating it to remain on high trend with rising downstream demand."