Asian PET Market Faces Price Decline Amid Weak Demand and Feedstock Pressure

The polymer market is witnessing a decline in prices due to weak demand and low feedstock costs, particularly for Polyethylene Terephthalate (PET). Regional trends reflect similar challenges, with Asian markets experiencing price drops across PET, MEG, and PTA.

Key Takeaways

  • Polymer Pricing: PET prices in India are stable at ₹91,000 per metric ton for RELPET G5841.
  • Market Dynamics: Weak demand and lower feedstock costs drive price declines globally.
  • Regional Trends: Asian PET prices dropped by 3.2%, with similar reductions in MEG (3.0%) and PTA (5.9%).
  • Production Updates: Chinese and Taiwanese producers restart or shut down facilities for maintenance, indicating fluctuating supply chains.
  • Competitive Offerings: Malaysian and Taiwanese producers set competitive polymer prices for Southeast Asian markets.

Polymer Prices: PET Prices Steady in India Amid Global Decline

  • The price of Polyethylene Terephthalate (PET) in India is reported at ₹91,000 per metric ton for both the RELIANCE brand, grade RELPET G5841, at two different locations: Ex Bhiwandi and Ex Mundra.

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Polymer Demand Dips as Feedstock Costs Fall

  • The global market for Polyethylene Terephthalate (PET) has seen a noticeable decline in prices, primarily due to weak demand and insufficient support from feedstock costs.
  • This trend has been observed across various regions, reflecting challenges in the PET industry.
  • In the Asian market, PET prices dropped by 3.2% since early November. This depreciation was driven by low production costs and limited downstream inquiries.
  • MEG prices in Asia fell by 3.0%, and PTA prices decreased by 5.9%, attributed to the typical seasonal lull in market activity. Supply for PET remained abundant, but demand was notably low.

Polymer News: Production Updates from China and Taiwan Signal Market Shifts

  • A Malaysian producer offered PP Film for the domestic market at the equivalent of US$ 1130/MT, PP Yarn and Injection at US$ 1100/MT, PP Thermoforming at US$ 1130/MT, PP Fibre at US$ 1150/MT, PP BC at US$ 1120/MT, PP RC at US$ 1220/MT, HDPE Film at US$ 1080/MT, HDPE Blow Moulding at US$ 1080/MT, HDPE Pipe at US$ 1120/MT, HDPE Yarn at US$ 1080/MT, LDPE Film at US$ 1300/MT, and LDPE Lamination at US$ 1400/MT, CIF Indonesia.
  • Zhejiang Petroleum & Chemical (ZPC) has restarted its No.3 Styrene Monomer (SM) Plant after maintenance. The plant is located in Zhejiang, China.
  • Anhui Jiaxi New Material has shut down its Styrene Monomer (SM) Plant on November 20, 2024, for maintenance work. The plant is located in Anhui, China.
  • Formosa from Taiwan offered PVC S-65D at US$ 810/MT per CIF Nhava Sheva/Mundra, US$ 720/MT FOB Taiwan, US$ 760/MT CFR China, and US$ 790/MT CFR SEA for December 2024 shipment.

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Expert Opinion: Competitive Pricing in Southeast Asia’s Polymer Markets

It is expected that the PET market will continue to face moderate demand, hindered by a lack of new orders, reflecting low purchasing sentiment and minimal buying activity.

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