Asian PET Market Seems Uncertain Despite Strong Demand

Asian markets for PET bottles, following a prolonged three-month weakening, recuperated in mid-July. However, this resurgence in market confidence has begun to wane recently, in spite of a consistent upswing in demand due to elevated temperatures across the region. This recent softening of the market outlook traces a slump in upstream sectors.

Request Access To The Latest Price Trends of PET

Diminished costs for raw materials and domestic surplus issues have largely outshone a slight sign of improvement in consumer interest. In reaction, sellers are increasingly inclined to either slash their prices or attempt to carry them forward to future periods. A representative from a local production firm highlighted that falling crude oil values have eroded the financial backing for raw material expenditures, applying downward force on PET price trajectories. To ignite sales amidst these conditions, PET suppliers are increasingly resorting to price reductions.

Simultaneously, according to a contact at a Korean manufacturing entity, harsh summer conditions in China have notably amplified the nation's appetite for PET resin.

Echoing China, Southeast Asian territories are also witnessing swung PET demand in response to high-temperature conditions. An insider at a Thai manufacturing company remarked that consumers, forecasting continued ascents in prices and convinced that current rates are at their lowest, are increasingly opting to augment their reserves and swiftly finalize transactions, particularly as crude oil values have been trending upward.

Read More About PET Production Cost Reports - Get a Free Sample Copy in PDF

As the landscape evolves, market stakeholders are now pondering whether this positive shift in PET bottle prices may persist into the coming days. Much of this contemplation is centered on the energy sector, with crucial feedstocks anticipated to sustain enough strength to either uphold cost burdens on manufacturers or constrain possible price diminutions. Despite this week’s dip, the CFR China basis valuations for critical feedstocks MEG, PX, and PTA are maintaining their highest levels since the closing weeks of April.