The sudden announcement by OPEC+ to reduce production by more than 1.6 million barrels per day in May, or nearly 6% of current crude oil production, came as a surprise. As a result, international oil prices increased, sharply increasing the price of Polyester feedstocks. Prices for Polyethylene Terephthalate (PET) Resin Bottle Grade increased by USD 15/MT in Europe during the week ending April 7 compared to the previous week.

The majority of PET Resin manufacturers were also compelled to follow the upward trend as the upstream cost side soared. The primary discrepancy in the PET Resin market was the sharp increase in feedstock Purified Terephthalic Acid (PTA) prices, which has shown a growth of 2.4% in the Euro-zone with a 3.5% rise in the Asian market, while the whole value chain of crude derivative products has been concerned about the news of the reduction in oil production.

In the downstream sector, the market continues to worry because the buying mood was lackluster from the start of April. The rising price was mostly the result of the costlier import markets amidst the recent rise in crude oil costs. As of March 30, 2023, the European Commission decided to open an antidumping inquiry into imports of specific PET Resin coming from China. As a result, in early April, the PET Resin market in Northwest Europe experienced rollovers to a modest increase in its pricing.

Conclusively, the PET Resin market is currently in a difficult situation due to rising crude oil prices and firmer import markets for both raw materials and PET Resin. At the same time, demand from the downstream beverage and bottling industries continues to be below that of a typical April in Europe.

As per the ChemAnalyst Forecast, "The market price of PET Resin is anticipated to continue rising in the upcoming days. The rising feedstock PTA market may also influence the upward price trend. In addition, we must keep an eye on the volatile crude oil prices."