Houston, US: As per a distributor in US Emcoplastic, Upward Price pressure in the US Polyethylene Terephthalate market has emerging due to hinderance in supply and rising oil prices. Oil prices have been firm as tight global supply outweighed fears that a potential recession could fuel demand. Additionally, low oil inventories, decreasing spare capacity, and the risk that supply growth will fall short of demand contribute to the upward trend in Polyethylene Terephthalate market prices.

Furthermore, the supply crunch has been exacerbated by a drop in exports from Libya amid a political crisis that hit manufacturing and ports. While other OPEC+ producers struggle to meet their production quotas, Russia faces a ban on its oil due to the war in Ukraine. Therefore, owing to these factors, manufacturers in the US are forced to revise their margins, leading to a hike of 10% as compared to previous months.

On the other hand, the Europe market has been fluctuating, supported by the changing scenario in its feedstock value, especially Paraxylene. This price change overcame due to possible recession as the US has been hit by port congestion and supply crunch, and ever-increasing prices weigh down consumers' demand. In addition, The US economy will likely fall into a mild recession by the end of 2022 as the Federal Reserve raises rates to normalize the prices of commodities, which may lower inflation and moderate economic activity in the US.

As Per the ChemAnalyst database, “In the US, the price for Purified Terephthalic Acid is expected to increase on the back of volatile crude oil prices and tight supply. Whereas, In Europe, the Polyethylene Terephthalate market may follow the price trend of its feedstock, Purified Terephthalic Acid, and Paraxylene, which is anticipated to remain high. Inline, demand For Polyethylene Terephthalate from the packaging industry is likely believed to strengthen in the peak summer season.”