Asia PET Prices Decline Amid Weak Demand and Oversupply

Key Highlights:

1. Stable PET Prices: Prices remained flat, with a marginal $2.86 per ton decline in early March, indicating weak market momentum.
2. Oversupply Challenges: China's PET market faces pressure from high inventory levels and the addition of 2.15 million tons of new capacity in 2025.
3. Weak Cost Support: PTA and ethylene glycol prices remain bearish, reducing cost-driven price increases for PET bottle chips.
4. Cautious Market Sentiment: Traders and buyers show limited restocking interest, sustaining a weak demand outlook despite production adjustments.

Polymer Price Trends & Market Movement

• The price of Wankai PET (Grade: WK-801) is ₹89,000/ton in Hyderabad, Ahmedabad, and Mumbai, while it is slightly lower at ₹88,000 per metric ton in Mundra and Daman.
• In early March 2025, PET prices fell from approximately $858.16/ton to $861.02/ton in the first week of march. The marginal $2.86 per ton decrease reflects a stagnant market with limited price fluctuations.

Supply-Demand Analysis & Market Sentiment

• The PET market in China experienced a fluctuating trend in February 2025, initially rising before declining as the month progressed. The market remains under pressure from oversupply, as the industry is still in the final stages of its capacity expansion cycle. 
• With a significant base of existing production units and an anticipated addition of 2.15 million tons of new capacity in 2025, inventory levels remained high compared to previous years. This continued expansion has intensified concerns over excessive supply, limiting price growth potential.
• Post-holiday procurement was completed by some buyers, but actual market transactions remained sluggish. 
• Some production reductions were observed, but they were insufficient to shift the supply-demand balance. Overall, weak downstream purchasing interest and persistent oversupply conditions kept price momentum subdued.

Global Industry Updates & Key Developments

• WTI crude oil prices reached $72.32 per barrel in mid-February, briefly supporting raw material costs before declining due to global economic uncertainties and falling OPEC+ production expectations. 
• The cost pressure on PET bottle chips weakened as key feedstocks, PTA and ethylene glycol, faced bearish price trends. 
• PTA processing fees remained at historically low levels of $40-70 per ton, further reducing cost support. 
• Jiangsu Hailun Chemical has shut its No.1 Purified Terephthalic Acid (PTA) Unit on 5th March, 2025 for maintenance work. The Unit is located in Jiangyin, China with a production capacity of 1.2 Million Tons/Year.
• INEOS Aromatics is planning to shut its Purified Terephthalic Acid (PTA) Plant in March, 2025. The Plant is located in Geel, Belgium with a total production capacity of 950,000 Tons/Year.

Expert Insights & Future Market Outlook

PET prices are expected to remain under pressure soon, primarily due to excess supply and weak cost support. The market is likely to exhibit narrow-range fluctuations rather than significant price swings. Traders and buyers remain cautious, and the absence of strong restocking sentiment could sustain the weak demand outlook.