Asian PET Market Faces Decline Amidst Subdued Demand and Stable Supply

Key Highlights

• Price Trends: PET prices increased 3-4%, reaching USD 880/MT in China and INR 89,500/MT in India by mid-January 2025.
• Demand-Supply Dynamics: Early January witnessed price dips due to subdued global demand and ample inventories.
• Market News: Sinopec and Sichuan Petrochemical shutdowns for maintenance impact LDPE and MEG supply; BPCL expands refinery capacity in India.
• Outlook: Gradual demand recovery expected in beverage and packaging sectors, but competition from imports and sustainability trends could limit price hikes.

PET Price Trend Analysis: January 2025

• The Chinese PET market has seen a notable price increase since the beginning of January 2025. Starting at USD 851.07 per metric ton on January 1st, prices have risen to USD 880 per metric ton, reflecting a 3-4% increase during this period.
• Similarly, the Indian PET market has followed a similar pattern. Prices in India were pegged at INR 86,500 per metric ton during the first week of January, and have since increased, reaching INR 89,500 per metric ton. This 3-4% rise mirrors the trends observed in the Chinese market, highlighting a broader regional shift in PET pricing.

Demand-Supply Dynamics in the Asian PET Market

• The Asian Polyethylene Terephthalate (PET) market experienced a period of declining prices in early January 2025, reflecting weaker demand and stable to lower production costs. 
• In China, PET prices fell by 1.2% during the week ending January 10, influenced by a 1.19% drop in Purified Terephthalic Acid (PTA) prices, while Mono Ethylene Glycol (MEG) prices remained steady. 
• Adequate inventory levels and subdued inquiries from overseas buyers were key contributors to the decline in pricing. Producers reported limited export activity, as many international buyers maintained cautious procurement strategies following the holiday season.
• Supply conditions remained favorable, with no significant disruptions reported in production or logistics. Ample stockpiles from pre-holiday periods further dampened immediate restocking needs. 
• While local manufacturers managed to maintain operations, increased competition from lower-cost PET imports into the region added additional pressure, particularly for markets like India and Southeast Asia.

Key Polymer Market News: Maintenance, Expansion, and Price Movements

• Sinopec Yanshan Petrochemical has shut its Low Density Polyethylene (LDPE) Line for maintenance work until end-January, 2025. The Line is located in China with a production capacity of 60,000 Tons/Year.
• Sichuan Petrochemical has shut its MEG Unit. The Unit is located in Sichuan, China with a production capacity of 360,000 Tons/Year.
• Shanghai SECCO Petrochemical has again increased its Acrylonitrile (ACN) weekly Prices in China by CNY 200/MT and assessed at CNY 11,700/MT, ex-tank basis.
• Bharat Petroleum Corp Ltd (BPCL) has secured loans worth Indian rupee Rs. 318 Billion (US$ 3.7 Billion) for its Refinery expansion and Petrochemical project at its Bina site in the Madhya Pradesh state. The loan amount accounted for about 65% of the total project cost of Rs. 489.3 Billion. 
• The project will increase the Refinery’s capacity by more than 41% to 11 Million Tons/Year. The Petrochemical Complex comprising a 1.2 Million Tons/Year Ethylene Cracker Unit and will have Units to produce downstream Petrochemical products including LLDPE, HDPE, PP, Bitumen, Benzene, Gasoline, Diesel and aviation turbine fuel.

Expert Opnion: Gradual Recovery Amid Competitive Pressures

• The Asian PET market is expected to show gradual improvements in demand as global trade activity recovers and downstream sectors, such as beverage and packaging industries, ramp up procurement for seasonal requirements.
• However, the potential for substantial price recovery remains uncertain, with competitive pressures from imported materials and evolving consumer preferences for sustainable and reusable alternatives continuing to shape market dynamics.