For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polyethylene Terephthalate (PET) market experienced a notable decline in prices, influenced by several critical factors. Following a stable trend in the first two months, prices dropped significantly in the latter part of the quarter. This decline was primarily driven by weak downstream demand, an oversupply resulting from the restart of production plants, and low production costs. The reduction in raw material prices, particularly for key feedstocks such as Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA), also significantly contributed to the downward pressure on PET pricing.
Mexico notably experienced the most pronounced price fluctuations during this period. Despite the overall declining trend in PET prices throughout the quarter, the market showed a 4% increase compared to the previous quarter, indicating some resilience. Additionally, MEG prices remained elevated compared to the same quarter last year, reflecting a 16% increase, which highlights the complexities in the raw material market.
By the end of the quarter, the price for PET Bottle Grade in Veracruz, Mexico, was recorded at USD 1251/MT. This figure underscores the challenging market environment characterized by declining prices and shifting demand dynamics throughout Q3 2024.
South America
In Q3 2024, the South American Polyethylene Terephthalate (PET) market saw a significant decline in prices due to several key factors. After a stable trend in the first two months, prices dropped sharply in the latter part of the quarter. This decline was mainly driven by weak downstream demand, an oversupply resulting from the restart of production facilities, and low production costs. Additionally, falling raw material prices exerted considerable downward pressure on PET pricing. Brazil experienced the most pronounced price fluctuations during this period. Despite the overall downward trend in PET prices throughout the quarter, the market recorded a 4% increase compared to the previous quarter, indicating some resilience in the face of challenges. Furthermore, MEG prices remained elevated compared to the same quarter last year, showing a 14% increase, which underscores the complexities within the raw material market. By the end of the quarter, the FOB price for PET Bottle Grade in Santos, Brazil, was reported at USD 1330/MT.
MEA
In Q3 2024, the pricing landscape for Polyethylene Terephthalate (PET) in the MEA region exhibited a dynamic and mixed trend. The initial two months saw a notable increase in prices, primarily driven by high import costs. Contributing factors included rising feedstock prices, particularly for MEG and PTA, along with elevated upstream crude oil prices and significant shipping charges. This combination was further bolstered by strong consumption levels across various downstream sectors, particularly in the beverage and packaging industries. However, the latter part of the quarter marked a significant shift, as prices began to decline sharply. This downturn can be attributed to reduced import costs from international markets and a decrease in key feedstock prices, which alleviated some of the upward pressure previously experienced. In Saudi Arabia, the market witnessed substantial price changes, with a 2.5% increase from the previous quarter. Despite this, PET prices remained 5.5% higher compared to the same quarter last year, signaling a resilient market. By the quarter's end, the price for PET Resin Bottle Grade in Saudi Arabia reached USD 1193/MT Ex-Riyadh, reflecting the ongoing volatility and complexity of the PET market dynamics.
APAC
In Q3 2024, the Polyethylene Terephthalate (PET) market in the APAC region experienced a notable decline in prices, driven by several critical factors. Weak demand from downstream sectors, coupled with limited trading activity, created downward pressure on market prices. Insufficient support from raw material costs further exacerbated this decline, leading to a predominantly negative market sentiment. Buyers exhibited little urgency to restock, resulting in diminished confidence across the market. Additionally, oversupply in the latter part of the quarter stemmed from increased production, as manufacturers anticipated higher future orders that ultimately did not materialize. China witnessed the most significant price fluctuations during this period, aligning with the broader regional trend. PET prices in China saw an 8.5% decrease compared to the same quarter last year, while a 5.5% drop occurred relative to the previous quarter of 2024. By the end of the quarter, the recorded price for PET in China stood at USD 977/MT, underscoring a challenging pricing environment characterized by persistent declines.
Europe
In Q3 2024, the European Polyethylene Terephthalate (PET) market faced a significant decline, influenced by a combination of supply and demand dynamics, consumer sentiment, and broader economic conditions. Initially, prices rose due to increased feedstock costs and supply disruptions, primarily driven by fluctuating crude oil prices. However, as the quarter progressed, the balance between supply and demand began to shift. While production levels improved, and inventory levels remained ample, moderate demand from downstream sectors limited any significant price increase. The stagnant market was further exacerbated by the lack of urgency among buyers to restock, despite some fluctuations in feedstock prices. Within the region, Germany experienced the most notable price changes, reflecting these broader trends. Interestingly, PET prices in Germany increased by 7.5% compared to the same quarter last year, with a 3% rise relative to the previous quarter of 2024. By the end of the quarter, PET prices in Germany were recorded at USD 1248/MT, FD Hamburg, underscoring a challenging pricing environment.
For the Quarter Ending June 2024
North America
In the second quarter of 2024, the Polyethylene Terephthalate (PET) market in North America showed a steady increase, driven by several factors. The period saw notable price rises due to ongoing supply limitations, heightened demand, and disruptions caused by severe weather events. Production constraints, particularly from plant closures in Ohio and Louisiana, worsened the supply deficit. Concurrently, increased costs of raw materials, driven by higher crude oil prices and elevated import prices of Mono Ethylene Glycol (MEG) into the US market, played a significant role in driving up prices. Seasonal spikes in demand, especially from the beverage and PET bottle sectors, further bolstered price pressures.
Within the USA, the market experienced the most significant price movements in North America. The quarter witnessed an overall positive pricing trend, with PET prices climbing 10% compared to the same period last year and 7% from the previous quarter. Seasonal demand fluctuations were pivotal, with summer months stimulating higher consumption of PET products, contributing to a 5% price increase in the latter half of the quarter. Despite efforts to stabilize supply, the imbalance between supply and demand persisted, reinforcing the upward trend in prices.
As of the end of Q2 2024, the price for PET Bottle Grade was USD 1330/MT FAS Houston, highlighting a consistently strong pricing environment throughout the quarter. This sustained price escalation reflects a market characterized by robust demand, constrained supply, and significant volatility, primarily influenced by external disruptions and dynamics in raw material prices.
APAC
In the second quarter of 2024, Polyethylene Terephthalate (PET) prices across the APAC region demonstrated notable stability, driven by a combination of factors that balanced market dynamics. Key influencers included stable supply levels and moderated prices for feedstocks such as Mono Ethylene Glycol (MEG) and Purified Terephthalic Acid (PTA). These consistent feedstock prices provided predictability in costs for producers. Moreover, manufacturing operations in the region encountered a few disruptions, ensuring a steady flow of PET resin to meet demand from industries like beverages and packaging, which maintained a cautious yet steady procurement approach.
In Japan, there were significant price movements, albeit within a stable context. Overall trends showed a slight upward trend influenced by seasonal demand during the peak summer months, driven by increased requirements for PET bottles and packaging. Compared to the same quarter last year, prices remained unchanged, indicating equilibrium, while there was a modest 2% increase from the previous quarter in 2024, signaling a slight positive shift. Prices were consistent between the first and second halves of the quarter, reinforcing the stable pricing environment.
The latest quarter-ending price for PET Bottle CFR Tokyo stood at USD 1015/MT, reflecting sustained stability throughout the period. This price stability underscores a balanced market environment characterized by steady supply-demand dynamics and minimal volatility, which bodes well for stakeholders in the PET resin industry.
Europe
In the second quarter of 2024, the European Polyethylene Terephthalate (PET) market has seen a noticeable increase in prices. Several factors have contributed to this rise. A significant factor has been the escalating costs of feedstocks, particularly Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG), influenced by substantial fluctuations in crude oil prices. Geopolitical tensions in the Middle East and production cuts by OPEC and its allies have further intensified these underlying cost pressures. Additionally, spikes in seasonal demand, especially from the beverage and packaging sectors, have played a significant role in driving prices upwards. Anticipation of higher summer demand has tightened supply further, leading to price increases.
Germany, experiencing the most significant price movements within Europe, exemplifies these dynamics. The overall trend for the quarter has been positive, with PET prices showing consistent growth. There was a slight decrease of 1.5% compared to the same quarter last year, and no change from the previous quarter in 2024. Seasonal fluctuations were influential, with increased demand in the latter part of the quarter contributing to a 1% price rise compared to the first half. As of the end of the quarter, the price for PET Bottle FD Hamburg stood at USD 1240/MT, indicating a sustained upward trajectory.
MEA
In the second quarter of 2024, the Polyethylene Terephthalate (PET) market in the MEA region saw varied price trends. Early in the quarter, there was a positive market sentiment driven by increased downstream consumption during the festive season of Ramadan and Eid. However, midway through the quarter, prices began to decline significantly due to several factors contributing to this downward trend. A surplus of PET in the region, combined with steady but low feedstock prices, played a major role in driving prices down. Reduced operational activities following Ramadan and Eid led to decreased demand from industries like PET bottle manufacturing. Towards the end of the quarter, prices started to rise again, influenced by fluctuations in feedstock prices and higher freight costs, particularly on Asian routes, due to global port congestion and berth delays.
Looking specifically at Saudi Arabia, market trends mirrored those of the broader MEA region, characterized by notable price volatility. Seasonal effects were evident, with peak summer demand unable to offset the oversupply situation. Price changes showed a consistent, moderate trend, with a 1.5% increase compared to Q2 of the previous year and no change from Q1 2024. The latest quarter-ending price for PET resin bottle grade Ex-Riyadh was recorded at USD 1223/MT, indicating a predominantly neutral pricing environment influenced by moderate consumption. Overall, the quarter was characterized by stability with a declining tendency initially, followed by a return to positive sentiments towards the end.
South America
In the second quarter of 2024, the South American region experienced a notable rise in Polyethylene Terephthalate (PET) prices, led by Brazil. This period, the dynamics of PET pricing were primarily influenced by several factors. Firstly, there was a significant increase in feedstock prices, particularly Mono Ethylene Glycol (MEG), which played a critical role in driving up PET prices. Additionally, disruptions in global supply chains and logistical challenges, including higher marine freight charges, further contributed to the price hike. Increased demand from downstream industries like beverages and food packaging also played a pivotal role in pushing PET prices higher.
Specifically in Brazil, the market saw substantial price fluctuations, reflecting an overall trend of price escalation. PET prices increased by 9% compared to the same quarter last year, indicating a significant upward trend. Furthermore, there was a 7.5% increase quarter-on-quarter, showing sustained growth in pricing. Comparing prices between the first and second halves of the quarter revealed a consistent 5% rise, demonstrating a steady upward trajectory. Ultimately, the quarter-ending price of USD 1357/MT for PET Bottle Grade FOB Santos in Brazil highlighted the positive and increasing pricing environment prevailing in the region.
For the Quarter Ending March 2024
North America
Polyethylene Terephthalate (PET) prices in the North America region saw a notable surge during Q1 2024. The market experienced a favorable pricing environment, with prices consistently trending upward throughout the quarter. Various factors influenced market prices, including mounting pressure from feedstock costs, robust demand from domestic downstream industries, and heightened freight charges.
This price increase can be attributed to higher production costs driven by the rise in feedstock prices, particularly Mono Ethylene Glycol (MEG), due to the closure of certain manufacturing plants amidst freezing weather conditions. Furthermore, price adjustments in the feedstock by key players exerted additional pressure on PET prices. Additionally, increased freight charges for shipping added further upward pressure on prices.
The overall trend in the PET market during Q1 2024 has been positive, with prices showing a steady increase. In the USA, which witnessed the most significant price changes, PET resin prices surged by approximately 4% in the first quarter compared to the previous quarter, while prices in the first quarter decreased by around 20% compared to the same period of the previous year.
APAC
The initial quarter of 2024 has brought about largely positive developments for the Polyethylene Terephthalate (PET) market in the APAC region, with prices witnessing an overall rise compared to the corresponding period last year. Various factors have contributed to shaping market prices during this quarter, including robust demand from downstream industries, elevated feedstock costs, and logistical challenges. These influences have collectively fostered bullish market sentiment, resulting in an upward trend in prices. During the quarter, fluctuations in crude oil prices and production cuts by OPEC+ also impacted crude oil prices. In South Korea, the PET market has experienced significant price fluctuations, with overall trends indicating an inclination towards higher prices. Seasonality and correlation have played significant roles in driving these fluctuations. Comparing the first quarter of 2024 to the same period last year, prices have seen a slight decrease of 0.3%. However, when compared to the previous quarter in 2024, prices have shown a notable increase of 1%. Nevertheless, the complexity declined towards the end of the quarter due to improvements in feedstock inventory and price reductions. This trend reflects the overall positive sentiment in the market, with a consistently favorable pricing environment observed throughout the quarter.
Europe
Throughout the first quarter of 2024, the European Polyethylene Terephthalate (PET) market witnessed a notable surge in prices. This upward trajectory was influenced by various factors, including heightened demand from downstream industries and robust support from the feedstock sector. Additionally, the freight sector exhibited volatility, with fluctuations in freight costs impacting commodity prices. During the quarter, key feedstocks such as Mono Ethylene Glycol and purified Terephthalic Acid experienced upward price trends, exerting slight pressure on PET prices. The shutdown of manufacturing units amid freezing cold weather resulted in tight feedstock supply. Simultaneously, the production of natural gases was hampered by the freezing conditions, leading to increased energy prices in the region. However, towards the end of the quarter, energy prices stabilized, prompting an increase in production rates. In summary, the European PET market observed increasing prices in Q1 2024, driven by heightened demand and support from the feedstock sector. Particularly in Belgium, positive price trends were evident, with prices rising by more than 3% in the first quarter of 2024 compared to the previous quarter and experiencing a reduction of around 9% compared to the same quarter of the previous year.
MEA
During Q1 2024, the Polyethylene Terephthalate (PET) market in the MEA region saw a consistent rise in prices, influenced by several factors shaping market dynamics during this period. Overall, market sentiment remained positive, bolstered by robust demand from downstream industries and ample availability of feedstock.
Saudi Arabia witnessed the most significant price changes, experiencing a 6% increase in PET prices during the first quarter of 2024 compared to the previous quarter. This surge can be attributed to increased demand from domestic downstream markets, particularly the PET bottle and food packaging industries. Additionally, logistical challenges and disruptions in the Red Sea impacted supply chains, resulting in higher costs and delays.
However, comparing Q1 2024 prices to the same quarter last year, there was a slight decline in prices, approximately 5%.
In conclusion, the PET pricing environment in the MEA region during Q1 2024, particularly in Saudi Arabia, was characterized by increasing prices. Factors such as strong demand, logistical challenges, and ample feedstock supply influenced market prices, contributing to a positive pricing trend throughout the quarter.
For the Quarter Ending December 2023
North America
The North American Polyethylene Terephthalate (PET) market witnessed a volatile Q4 2023 due to several factors. The market situation remained bullish, with moderate to low supply and high demand for PET bottles.
Reduced consumption from downstream packaging industries resulted in lower demand for PET resin, leading to a moderate to low demand situation. The oversupply of PET bottles in the USA market led to sluggish downstream enthusiasm, while producers with excess inventories sold at discounted prices to avoid stockpiling, ultimately affecting supply and pricing. Later in the second half of the quarter, price stability was due to the uninterrupted supply of feedstock available in the market, amid sporadic demand from downstream packaging industries.
Notably, manufacturing activities in November 2023 showed a slight decline, signaling a more pronounced deterioration in operating conditions within the goods-producing sector. This deterioration was evident through contractions in output, new orders, employment, and stocks of purchases, although vendor performance showed signs of improvement. The latest / quarter ending price of PET Bottle Grade DDP Los Angeles in the USA market is USD 1240/MT.
APAC
The Polyethylene Terephthalate (PET) pricing in the APAC region during the current quarter of 2023 was impacted by various factors. The market situation for PET was predominantly bullish, with a moderate to high supply and moderate demand in the region. The South Korean market experienced a shortage in the supply of PET due to high costs associated with importing the product. Later, the bearish demand sentiments from downstream packaging industries in Taiwan and pessimistic economic conditions impacted the pricing of the product, leading to a drop in PET Resin prices. In contrast, the Indian market saw a stable price for PET bottles due to sufficient supply and consistent demand from the packaging industry. The recent upswing in the cost of PTA attributed to the surge in PET Resin prices in India was the region behind the increment in PET Resin price by the end of the quarter. There were no plant shutdowns reported by market analysts during the quarter. South Korea saw the highest price changes with a 0.8% decrease in prices at FOB Busan due to the decline in crude oil prices. The latest price of Polyethylene Terephthalate (Bottle) - FOB Busan in South Korea for the current quarter is USD 970/MT.
Europe
The Polyethylene Terephthalate (PET) market in the European region faced a bearish trend during the last quarter of 2023. The market was influenced by heightened production costs, sluggish demand, and ample supply of the product. The PET resin factories had to reduce production to stabilize prices and manage inventory growth. The feedstock purified terephthalic acid price was expected to increase during the quarter, while the crude oil price was expected to support the product price trend. No plant shutdowns were reported during the quarter. In Belgium, the PET Bottle Resin market faced a bearish sentiment, with high unsold inventory and increased inventory pressures. The market situation remained strong with surging demand and new inventories entering the market among the suppliers. To address the imbalance, the European Commission implemented tariffs on PET imports from China, ranging from 6.6% to 24.2%, with a duration of up to six months as the commission assesses feedback. This regulatory intervention follows an investigation initiated in March, revealing that Chinese PET producers benefit from artificially low costs in energy, petroleum-based raw materials, labour, land, and capital. The imposition of tariffs aims to level the playing field and safeguard the interests of European PET manufacturers in the face of these economic challenges. The quarter ending price of Polyethylene Terephthalate (PET) Bottle FD Antwerp in Belgium was USD 1180/MT.
MEA
The Polyethylene Terephthalate (PET) market in the Middle East and Africa (MEA) region remained mix during the Q4 2023. The market conditions were mostly influenced by the supply-demand dynamics and the upstream crude oil prices. The PET Resin market in Saudi Arabia experienced a bearish trend due to the expected decrease in downstream packaging industries' consumption and an oversupply of material in the region. However, a potential increase in crude oil prices due to the conflict between Israel and Palestine could impact the entire PET bottle value chain. The PET Bottle market in Saudi Arabia was bullish due to limited inventories and partial increases in prices. The packaging industries might restart restocking the material to meet the upcoming demand. Overall, the market remained stable, with no plant shutdowns reported by the market participants. The trend, seasonality, and correlation price percentage of PET Resin Bottle Grade in Saudi Arabia during the Q4 2023 were bearish due to low to moderate supply and reduced consumption from downstream packaging industries. The price witnessed a 2% change compared to the preceding quarter, with a 3% variation between the first and second halves of the current quarter. The most recent price for PET Resin Bottle Grade Ex-Riyadh in Saudi Arabia stands at USD 1122/MT.
For the Quarter Ending September 2023
North America
The US market price of Polyethylene Terephthalate (PET) Resin Bottle Grade decreased during the first half of the third quarter of 2023, due to the rising inflation during July. Meanwhile, fear of inflation and a recession reduced consumer spending, which in turn reduced demand as people sought to economize in the face of market uncertainty. However, because of excessive inventories and a decline in purchases from the downstream packaging industries, producers reduced their manufacturing activity. Nonetheless, the U.S. Bureau of Labor Statistics reported at the end of the third quarter that the Consumer Price Index will increase by 3.7% year in August 2023.This impacted various industries, including the PET sector, which was grappling with the ramifications of escalating expenses. Furthermore, the presence of inventories had further complicated due to ongoing uncertainties stemming from weather-related disruptions, with Hurricane Idalia standing out as a significant event during the hurricane season. Despite this, the sluggish demand from downstream industries and oversupply in the region did not impact the PET prices.
APAC
The deterioration in the Polyethylene Terephthalate (PET) Resin Bottle Grade price during the first half of the third quarter of 2023, was due to the decline in the overall demand outlook. However, the market gained momentum from August 2023, owing to the seasonal variation in the Asian market. As the summer season hit the Asian market, the market for PET Resin rose, considering the high offtakes from packaging bottle industries. However, this increase in prices can be attributed to the limited availability of materials and higher settlements in the prices of Crude Oil, which is a key component in PET Resin production. n the upstream market, the PTA price as a raw material was higher, and the market environment had improved slightly. Furthermore, Consumer Price Index CPI in South Korea increased to 112.33 points in August from 111.20 points in July of 2023, according to Statistics Korea. Furthermore, the Jiangsu Sanfangxiang Group Co., Ltd. in Juangyin and Indorama Ventures and Dhunseri Ventures Limited in Panipat were on maintenance shutdown from 1st Sept 2023 to 30th Sept. 2023.
Europe
The European Polyethylene Terephthalate (PET) Resin Bottle Grade market mirrored the Asian market trend, with prices lowering during the first half of the third quarter, after which the price rose for consecutive two months. This was because, the PET Bottle market in the UK experienced a significant upward trend attributed to a constrained supply, increasing demand, and dwindling inventory levels. In terms of the upstream market, the rise in crude oil prices played a role in supporting the Paraxylene market, which serves as the fundamental material for PET production. Moving in the downstream industries, the demand for packaging remained robust, leading to enhancements in domestic demand even in the presence of relatively limited inventory levels. Despite this, there were concerns regarding the potential recession, especially as oil prices were experiencing a sharp increase. Furthermore, the consumer price index showed a notable rise from July 2023 to August 2023, with it settling at 2.4, up from the previous month's figure of 1.7. This suggests that consumer prices were still being impacted by rising inflationary pressures. Positively, the region's manufacturing activity improved.
For the Quarter Ending June 2023
North America
The prices for Polyethylene Terephthalate (PET) Resin Bottle Grade declined throughout the second Quarter of 2023 in the North American market. Downstream industries reduced operating rates and waited for demand to pick up and raw material prices to stabilize. Supply remained at normal levels as the supply of Purified Terephthalic Acid (PTA) increased. In the middle of the second quarter of 2023, supply was also affected by labor disruptions on the West Coast, which resulted in cargo ship delays and port congestion, but low demand from downstream industries weakened purchasing activity. Manufacturing activity also declined in the region due to sluggish purchasing activity amid high-interest rates and inflation, with FRED data also showing that the production price index in the US market fell to 245.83 in June 2023. Therefore, inflation and recessionary fear had a negative impact on consumer spending, which in turn had a negative effect on demand, as consumers tried to save money amid the uncertainty in the market. Finally, the price of PET resin was estimated at USD 1180/MT FAS Houston.
APAC
Polyethylene terephthalate (PET) prices rose during the first half of Q2 in the Asian market as the sudden announcement by an OPEC+ member to cut crude oil production by more than 1.6 million barrels per day in May pushed up global oil prices, which in turn led to a significant increase in raw material prices. However, demand from the downstream packaging sector has been mixed, although there was some improvement in the beverage and bottling sectors. Towards the end of the second quarter of 2023, PET resin prices declined due to weaker feedstock prices amid the fall in oil prices, which dragged the market down this week. In the upstream market, input costs decreased due to lower raw material PTA prices. According to market participants, there was no room for price increases as end-user demand was low, and packaging manufacturers and distributors were unable to raise downstream prices. According to data from Statistics Korea, the consumer price index remained unchanged at 111.12 in June 2023 as sluggish global demand weighed on the market. As a result, consumers reduced their spending, while companies reduced their selling pressure or kept it mostly stable to stimulate sales in the region. Finally, the price of PET was quoted at USD 915/MT FOB Busan.
Europe
The Polyethylene terephthalate (PET) bottle market in Europe has been sluggish throughout the second quarter of 2023 due to the fall in crude oil prices, which has had a negative impact on its derivative market. Analysts and industry experts attribute the slump to high levels of inventory in the packaging sector, which has led to fundamentally saturated demand. The macroeconomic environment was reflected in the fall in raw material costs for paraxylene and mono-ethylene glycol, suggesting lower consumption levels in Europe. Overall, despite lower demand, there was still room for growth in the beverage and bottling industry during the peak summer season. In addition, as beverage producers had already procured sufficient material at the beginning of May, they did not think of restocking as sales were lower than expected. Meanwhile, European monthly producer prices fell by 0.9% in May, highlighting the challenges faced by the economy in reviving demand and restoring economic growth. The closing price for PET Resin Bottle Grade was quoted at USD 1240/MT FD Antwerp.
For the Quarter Ending March 2023
North America
During the first quarter of 2023, Polyethylene Terephthalate (PET) Resin prices in the USA continued to decline due to low demand and adequate supplies. The operating rate was hampered, mainly because of the low availability of workers amidst rising labor, transportation, and other costs. However, this did not have a significant impact on pricing because demand from downstream industries was below average, and market participants were not considering advance procurement. Furthermore, due to slow demand and sufficient inventories, Alpha PET/Indorama Ventures Limited in Decatur Morgan Country, Alabama, shut down from February 1st, 2023, to February 10th, 2023, and reduced its operating rate from a total capacity of 37500 TPM to 24107 TPM. As a result, the price for PET bottles declined during the first quarter and settled at USD 1474 FAS Houston in March.
APAC
The first half of Q1 saw an increase in the price of Polyethylene Terephthalate (PET) Resin as the expected demand shifted with the approaching summer season in the Asia-Pacific region. Moreover, export demand picked up after China's Lunar New Year holiday. Following the holiday break, production rates increased rapidly, and demand from the downstream packaging industry also grew. Downstream beverage plant operating rates remained stable, reaching above 80% for the packaging material. However, the price trend reversed towards the end of the quarter as inventories grew, but downstream offtakes were still low. In February, Dragon Special Resins in Xiamen (China) was closed for maintenance from the 1st to the 31st of February, 2023.
Europe
The demand for Polyethylene Terephthalate (PET) Resin was on the decline during the first quarter of 2023, with low sales in the bottles and beverages industries. This was due to the sharp decrease in purchasing activity in the region, as output demands decreased and material availability improved. Furthermore, manufacturing output declined, and employment growth slowed down. Despite this, the German market had sufficient access to raw materials due to ideal refinery operating rates. In addition, the high inflation rate in Europe amidst the labor strike in the German market had an impact on the PET Resin market. Overall, the euro-zone PET Resin price declined, with JBF-RAK in Belgium closing its unit for maintenance from March 1st to March 31st, 2023.
For the Quarter Ending December 2022
North America
The market's excess inventory had pushed down Polyethylene Terephthalate (PET) prices while producers had cut operating rates and restricted new production. Nevertheless, there was a lot of market uncertainty lurking, which lowered demand and prevented a rebound. Meanwhile, Reduced demand from the beverage and bottling industries was the main factor contributing to the fall. As winter drew near, packaging industries' offtakes of PET bottles decreased as well in Q4. Although no plant shutdowns were discovered, DAK Americas and APG Polytech, LLC/FENC industries in the US continued to run smoothly. Throughout November, the cost of PET Bottle Grade remained steady at USD 1902/MT DDP West Coast.
APAC
In the fourth quarter of 2022, the domestic Polyethylene Terephthalate (PET) Resin price was constrained and weak. The main cause of the decline was decreased demand from the beverage and bottling industries. Overall, end-user demand was average, but small and medium-sized downstream customers mostly bought out of necessity. Early October 2022 saw Chongqing Ching lower its operating rate from 1.2 million Mt/year. Later, the logistics were slow in the second half of Q4 because of COVID-related restrictions. In addition, Jiashan Molai Trade Co., Ltd. and Shanghai Quyi Industry Co., Ltd. both saw an improvement in their profit margins in the third months of the quarter as a result of the delayed production, low stocks, and covid restrictions. Conclusively, the price for PET in China settled at USD 1147/MT FOB Wuhu during October.
Europe
The price of Polyethylene Terephthalate (PET) Bottles was decreased by 6 to 9% by PET Resin makers as feedstock PTA costs fell by 5.2% in the second half of Q4. The tendency toward decline was also aided by the muted demand from the packaging industries. Since the start of the winter season, sales of downstream beverages and water bottles have decreased, which has in turn contributed to the decline in PET bottle offtakes. While PET bottles were in extremely low demand on the domestic market, producers in Europe also recognized the inexpensive import material from China. As a result, it was discovered that the price was USD 1739/MT FD Hamburg in November.
For the Quarter Ending September 2022
North America
The third quarter of 2022 witnessed a declining market trend for PET (Polyethylene Terephthalate) Resin in the North American market. The feedstock PTA (Purified Terephthalic Acid) prices were tumbling till the first half of Q3, which further contributed to the decreasing trend to follow. Meanwhile, demand remained slow from the downstream packaging sector; thus, traders preferred emptying their stocks at cheaper rates. Further, demand was subdued due to the approaching end of the high bottle season and record-high inflation, weakening consumers’ confidence. As per the report, the quarterly review of the PET Bottle Grade market was mainly muted.
APAC
Following the global market situation, the PET Resin market in China also dipped throughout Q3. Meanwhile, the Indian market also witnessed a declining trend as a result of lower demand and weakened feedstock PTA prices. Further, the resurgence of Covid in the Chinese market affected the supply of the product, and the zero-tolerance policy during this pandemic also affected the Chinese economy badly. Thus, the overall slowdown in the economy continued to pull down polyethylene supply in China, which also negatively impacted the global market sentiments. A few manufacturers, such as Jiashan Molai Trading Co., Ltd., Shanghai Hongqi Plastic Technology Co., Ltd., and Shanghai Quyi Industrial Co., Ltd., also revised their offers foreseeing high inventories and weak demand.
Europe
The European market has showcased a mixed sentiment throughout the third quarter of 2022, with the market witnessing growth in the first half of Q3. Later, as the energy crisis rose over the market, the sentiments for major products declined, including PET bottles. The demand mainly comes from the packaging sector for water bottles and beverages. Since consumers were hesitant to make substantial purchases due to the rising gas and electricity prices on the European market, the bearish trend has persisted since the second part of August. Additionally, as the peak season for its end-use sectors was about to finish, Polyethylene Terephthalate (PET) producers had lowered their offers to sell out the available stocks, which led to a price decrement during September.
For the Quarter Ending June 2022
North America
Since the start of Q2, the market for Polyethylene Terephthalate (PET) kept increasing, owing to the firm Oil prices as 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 were forced to revise their margins, leading to a hike in price in this quarter. Furthermore, Healthy buying sentiments from the domestic and regional markets have positively impacted the prices of Polyethylene Terephthalate to boost. Later in the second half of Q2, 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. Therefore, considering the aforementioned reasons, the price rose by 3 % to 4% throughout this quarter and hovered around USD 2338/MT to USD 2411/MT FAS Houston.
APAC
In China, Polyethylene Terephthalate (PET) prices dropped throughout the quarter, aided by the restrictions in the Chinese market. During the second quarter, PET offtake from the food and beverages packaging industry fell, decreasing its price. The operating rate of many manufacturing units slowed down, while the average price of Crude oil-based feedstock Purified Terephthalic Acid and Mono-Ethylene glycol was dull. Therefore, considering these factors, the price for PET in China dipped and settled at USD 1255/MT Ex-Shanghai in June. In Contrast, the Indian market rose throughout the first half of Q2, as the demand for PET bottles picked up during the summer season. In addition, Reliance Industries Limited rose Ethylene Glycol prices in India due to the consistent firmness in the oil price. Thus, to conclude, the Indian market for PET was ruled by its feedstock, which remained high in Q2 and settled around INR 122040/MT to INR 121810/MT Ex-Depot Baddi in this quarter.
Europe
The Europe market remained volatile throughout the first half of Q2. This attribution came on the back of strong offtakes from packaging industries and Firm feedstock prices in the region. Feedstock Purified Terephthalic acid was rising, supported by the soaring crude oil prices. Furthermore, tight supply fundamentals, resolutely rising freight charges, and shipping costs amidst the Russia-Ukraine War had resulted in firm prices of PET in the regional market. From the demand side, offtakes from the beverage and bottling industry lifted the price trend in the domestic market. Meanwhile, the PET market dropped marginally in the second half, easing supply dynamics and sufficient stocking. Consequently, the price for Polyethylene Terephthalate (PET) hovered around USD 1807/MT FD Hamburg.
For the Quarter Ending March 2022
North America
In North America, Polyethylene Terephthalate (PET) market witnessed upward trend in first half which declined in early second half of Q1 2022. The rise in price was due to the consistent demand from downstream users as PET forms a staple for beverage bottles whereas Purified Terephthalic Acid (PTA) market witnessed contrasting trend where PTA prices rose in first and later months of Q1 and declined in second half of Q1. US dependency on Mexico for its PTA imports and its production disruptions in Mexico had manifested in curtailed PET operating rates in USA and thereby, in strong surge in prices in the later months of Q1. After the conclusion of Q1, PET prices were assessed at USD 2060 per MT on FOB basis.
Asia Pacific
Polyethylene Terephthalate (PET) market continuously rose in India in the first quarter owing to the high demand from packaging and textile industries. The speculations around the global crude oil supply were unable to ease hence crude oil prices was trending upwards since the beginning of Ukraine-Russia conflict affected its derivatives paraxylene and Purified Terephthalic Acid (PTA) market. This had caused overall cost pressure on key value chains including Polyethylene Terephthalate. Thus, PET price rose significantly and were assessed at USD1972.28/MT (INR 149780/MT). In China, PET market flourished throughout the first quarter with declined operating rate due to curtailed availability of feedstock PTA where two PTA plants had observed decline in production rate and another plant went offline in later half of Q1 2022. From demand side, plastic bottles demand stood stronger backed by seasonal change hitting Asia-Pacific region. During Q1, PET price in China was assessed at USD 1381-1415 per MT FOB-Wuhu.
Europe
PET market in the European region remained strong throughout the quarter on the back of robust demand and firm cost pressure from PTA. Purified Terephthalic Acid (PTA) availability remained curtailed during Q1 which put inflationary pressure on the available material. In February, Manufacturers also reported that rising feedstock prices amidst the ongoing war between Russia-Ukraine have culminated into the hike of the price. Downstream industries too operated normally with high demand packaging industry. Later, with logistics constraints the demand for the product in the domestic market dipped in H2 of Q1, but the overall market rose as the demand for PET bottles remained healthy in the domestic market. The price for PET in Europe saw upward trend and got assessed at USD 1815 FD South Hampton.
For the Quarter Ending December 2021
North America
Downstream bottle demand followed the trend of previous quarter and it remained strong throughout Q4. Consequently, there was demand pressure over PET resin from packaging and other allied sectors. While PE and PP demand eased in the later stages of the year, PET consumption volumes increased in the last quarter. Limited availability of imports from Mexico as DAK Americas announced force majeure in Mexico further pressured the domestically available material. Imports from Asia also remain limited in the wake of resolutely high freight charges. Polyethylene Terephthalate price in December were assessed at USD 1900 per MT on FOB basis.
APAC
Domestic PET prices climbed in the beginning of Q4 as import prices rose significantly which resulted in an upward price trend and prices were assessed at INR 97600 per MT Ex-Depot Baddi in late October. However, PET values weakened towards H2 of Q4 as the demand for the product turned feeble post the festive season in India. Besides, weak values of upstream Ethylene and seasonal lull in the demand pattern have further caused a decline in the prices of the product. PET Bottle grade prices further dwindled to INR 101000 per MT in December. In China, Polyethylene Terephthalate market followed a similar pattern where demand influx in early parts of Q4 increased the prices of Polyethylene Terephthalate however demand deterioration towards late Q4 culminated into slump in prices. In December, Polyethylene Terephthalate (PET) price in China was assessed at USD 1045 per MT on CFR basis.
Europe
PET resin market measure incredible growth where prices of Polyethylene Terephthalate (PET) crossed Euro 1500 per MT on FD basis for the first time in more than 10 years. Demand from downstream users remained strong where consumers struggled throughout the quarter in order to secure their material. Recycled PET production has also remained dull which further increased the dependence on virgin PET. Limited domestic production of PTA and unavailability of imports from Asia exacerbated the production and culminated in below-par operating rates curtailing complete supply chain. Manufacturers also reported that rising feedstock prices have contributed to the increased cost pressure on PET.
For the Quarter Ending September 2021
North America
Imports of feedstock Purified Terephthalic Acid (PTA) improved during Q3 in comparison to previous quarters where imports were highly constrained on the back of declining production rates in Mexico. Increased availability of feedstock translated into improved production rates for PET. Domestically, DAK Americas, a key producer opted to shut down its Bay St Louis site in Mississippi which has production capacity of 65 KTPA in the aftermath of hurricane Ida in late August and early September. Demand for PET remained robust caused by increased demand of PET bottles as summer hit its peak and covid restrictions eased in USA. Prices remained firm in the range USD 1650 -1710 per MT on DDP basis in USA.
Asia
Decline in feedstock PTA trend along with downturn in the demand for PET has resulted in weakening of PET prices in Q3. Consumption of PTA has decreased after firm intakes in earlier quarters. Resurgence of covid cases in Asia has curtailed the consumption of beverage bottles as outdoor activities were restricted under covid protocols. Traders were witnessed having a cautious approach towards the market developments as queries for the material decreased. This has resulted in decrement in prices of PET where last it was assessed at USD 1050-1100 per MT on FOB basis.
Europe
European PET market remained tight mirroring the pattern of earlier quarters. European petrochemical industry continued its struggle with resolutely high shipping charges and limited availability of containers also impacted PTA imports to Europe. Furthermore, reduced imports of PTA hamstrung PET production and therefore resulting in tightened supply fundamentals. Demand for the material remained firm as key economies on the back of successful vaccination drives have increased outdoor activities and eased pandemic protocols. This in turn have increased demand for PET bottles. Inventory levels remained weak, remarked several market participants as Q1 and Q2 were healthy in terms of PET demand.
For the Quarter Ending June 2021
North America
Prices of Polyethylene Terephthalate (PET) kept rising in USA during Q2 2021, backed by firm demand and high logistics cost. Buyers in USA revealed that the price of PET rose with increase in global shipping rates due to the trade destruction caused by pandemic in major Asian countries. Besides, overall inventory level was already low in the meantime due to the devastation during previous quarter in the Gulf of USA, which led to material shortage in the country. However, high freight cost provided opportunities to domestic manufacturers, as they also revised their prices and extended margins at times of low availability. Therefore, a steep rise in price of PET was observed in USA which revolved around USD 1705/MT during last week of June in Texas.
Asia
Muted demand in the Indian market, created overall market dullness in Asia during this quarter. While in China, prices increased effectively by the end of June, which later started declining due to slacked demand from pandemic hit countries. Meanwhile, Indian market experienced bearish market sentiments due to dented demand under pandemic mayhem in the country, where abundant availability also supported this downward trajectory in prices of PET. However, during April prices of PET rose due to scarcity of material and stable demand from domestic market under arrival of summer season. Therefore, the price of PET accessed at USD 885/MT (film grade) and USD 932/MT (bottle grade) during first week of June in India.
Europe
PET price in Europe remained dull throughout the quarter, backed by dented demand and abundant stock availability in the major countries. The demand remained lower than expected in major European countries, where buyers revealed that either the seasonal demand has been postponed or is passing through bearish sentiments. Therefore, a sharp decline in price of PET was observed in Europe during this quarter.
For the Quarter Ending March 2021
North America
Amidst winter storm disruptions, when most of the Texas production facilities were down, demand for PET across the region witnessed consistent increment every month. Robust demand for PET from packaging, container, and bottle manufacturers amidst insufficient supplies made the prices to witness tremendous surge during the session. Consequently, prices of PET across Ohio and Texas rose by 5.46% and 5.38% and settled at USD 1410 per MT and USD 1565 per MT respectively. Meanwhile, apart from extreme cold conditions across US gulf, reduced supply from Mexico due to local shortage also impacted the prices of PET in North America during this quarter.
Asia
In the Asian market, domestic PET demand remained firm and domestic manufacturers continued their operations efficiently despite of having tight feedstock supply. In China, exports demand deemed very high, meanwhile Indian government imposed an antidumping duty on different grades of PET coming from China. Although the prices of PET in China showcased rise with each passing week, FOB price of PET at Quingdao China rose from USD 907/MT (January 2021) to USD 1008/MT (March 2021). After this antidumping duty, sentiments of Indian manufacturers boomed, as they caried out a rise in prices of PET across the country while receiving a firm demand from domestic market.
Europe
Europe had to face tight availability of PET for domestic market while receiving strong export demand from other countries. US winter freeze disrupted the trade activities across Europe and reduced the availability of PET across the region. Container shortages across Asia Europe Trade route also impacted the market and pushed the prices up, the free delivery PET prices across North west Europe were marked at USD 965.53 per MT during this session.
For the Quarter Ending September 2020
North America
Polyethylene Terephthalate (PET) prices in North America were stable in Q3 due to healthy demand of virgin PET amidst its robust consumption in food and beverage industry. Thus, sales of PET resin in packaging of sanitizing and cleaning products were on boom in Q3. Bulk-buying of PET led to unseasonal demand in North America. Many buyers secured huge contracts at lower prices during September. In comparison to Q1 and Q2 where the demand level of the resins declined due to slow economic growth, US-China tariffs war and plunging oil prices, the demand reached stability in Q3 2020. It has also been observed that the consumer preference is shifting towards food and packaging industry following the requirement of untouched packaged food.
Asia
Polyethylene Terephthalate (PET) supply across Asia was relatively stable in comparison to the previous quarter. Majority Chinese manufacturers maintained their production levels to cater to the surged demand for PET from India and other Asian countries. Whereas there were several manufacturers like Sanfame Group that maintained low operating rates amidst fears of ongoing demand uncertainties. During the initial days of Coronavirus outbreak, even though the demand was expected to increase in the bottled water and sanitizer demand, the demand in other applications such as packaging of fruit juice and carbonated soft drinks decreased. Asian production output of Polyethylene Terephthalate (PET) is expected to be relatively high in the Q4 as downstream industries are heard increasing their production to make up for the loss incurred in the previous quarter.
Europe
The third quarter Polyethylene Terephthalate (PET) demand in Europe witnessed comparatively priced imports. Countries like Italy and The Balkans received high PET imports in September and October. Weaker US dollar versus the euro and severe weather conditions in US derailed the prices of the raw material i.e., MEG. It was heard that Alpek Polyester UK is planning to shut its 150 KT/year PET plant. While major manufacturers of Polyethylene Terephthalate (PET) like JBF and Indorama Ventures were able to maintain high production levels. The Covid-19 pandemic has potentially boosted the demand of single use plastic packaging subsequently increasing the demand and prices of Polyethylene Terephthalate in Europe.
