Polyethylene Terephthalate (PET) prices have been closing in on USD 2000 per MT on FOB basis, the recent price increase of USD 90 per MT meant prices are in touching distance at USD 1980 per MT FOB US Gulf Coast. PET prices have gained more than USD 250 per MT in the last quarter.

PET Prices in USA have been on an incessant uptrend since October due to consistent demand from downstream users as PET forms a staple for beverage bottles. PET demand has been on the rise since the advent of last summer. Earlier due to ample inventory levels PET prices remained stable in Q2 and Q3, however inventory levels have deteriorated drastically in Q4 and consequently prices have observed such record values.

Feedstock Purified Terephthalic Acid (PTA) availability has dropped substantially in last few months which culminated into curtailed production of downstream PET. For PTA, US largely depends on exports from Mexico however, production lags in Mexico hampered supply of PTA in USA as well. Limited availability of PTA meant sluggish production rates of PET which resulted in declining inventory levels amid robust demand from downstream food and beverage industries.

As per ChemAnalyst, “Polyethylene Terephthalate prices are likely to remain on the uptrend throughout January owing to robust demand from downstream industries and limited scope of supply recovery in the short term. Polyethylene Terephthalate prices may further shoot up as demand after Q1 usually rise rapidly as beverage consumption increases after Q1 which is likely to force manufacturers to opt for further price spikes in coming months given there is limited improvement in inventory levels of Polyethylene Terephthalate across USA. However, as per latest assessments PTA production has improved in Mexico as a key manufacturer has lifted force majeure over PTA. This is likely to spur improvement in downstream Polyethylene Terephthalate supply chain.”