Qingdao, China: This week, Higher feedstock costs and increased demand boosted Polyethylene Terephthalate bottle prices. The expectation regarding soaring demand came on the back of easing stringent lockdowns in some cities in China.

Will the road to recovery in Covid-19 lockdown pave the way for virgin PET demand?

Polyethylene Terephthalate has been an excellent choice for packaging in the beverage and bottling industries, which is made by polymerizing ethylene glycol and terephthalic acid. As per the sources, the price of plastic raw materials has roared due to the volatile behaviour of crude oil, which has passed the buck on higher input prices. It should be noted that the plastic producing industry accounts for 10% of world crude oil demand, and the manufacturing of Polyethylene Terephthalate is directly affected by changes in crude oil atmospheric on a global scale.

Shanghai, a city in China, is still striving to resume fully, as the factories were operating at a normal rate because of the plant glitch, which has caused supply reduction. China's COVID lockdowns are playing a substantial role that weighs on fuel and energy demand outlook, which repercussions have affected the market trend for Polyethylene Terephthalate. Meanwhile, market players are a bit worried about the supply in Jun-Aug, affecting the availability of inventories with downstream textile industries.

Furthermore, the president of the Plastic Manufacturers and Traders Association (PMTA) revealed that the prices of all kinds of plastic raw materials have increased by 50% in the past six months. On the one hand, rates of plastic raw materials are touching height. At the same time, on the other hand, there is no demand because of the power cuts because the plastic manufacturing companies require ample power supply for the operation of their machines, which are immensely affected.

As per ChemAnalyst database, "The improving epidemic situation and emerging demand from downstream Bottle industry during the peak season may keep the prices for Polyethylene Terephthalate uplifted. In addition, the deteriorating RMB against the USD may increase the commodity's spot price in China.