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.
