Asian PET Prices Decline Sharply Amid Cost and Supply Pressures

Key Highlight Points

• Domestic PET prices range from ₹79,500 to ₹81,000/MT across key Indian cities.
• China’s PET prices dropped sharply in early April, with partial recovery by mid-month.
• Oversupply pressure continues, with 2.15 million tons of new capacity and port stock at 584,400 tons.
• Crude oil & feedstock costs have declined, weakening price support across the polyester chain.

Regional PET Pricing Overview

• As of April 14, 2025 Wankai's PET grade WK-801 is being offered at ₹81,000/MT in Hyderabad, while the price in Mumbai is slightly lower at ₹80,500/MT. In Ahmedabad, Mundra, and Daman, the product is uniformly priced at ₹79,500/MT. 
• PET prices in the China market saw a notable fluctuation in April 2025. On April 1, the price stood at $858.61/ton. By April 8, it had dropped sharply to $761.81/ton, reflecting a significant market correction driven by cost pressures and supply dynamics. 
• However, as of April 14, the price has shown signs of recovery, rebounding to $796.88/ton. 

PET Demand and Supply Outlook

• According to the commodity market analysis system, the PET bottle chip market is currently facing a supply-demand imbalance. In 2025, an estimated 2.15 million tons of new PET capacity is expected to be added, further intensifying existing oversupply concerns. 
• Inventory levels are already elevated, and port stocks have reached 584,400 tons, marking a significant increase. The average operating rate of key PET production units stands at 74.48%, contributing to steady and growing supply.
• There has been no substantial improvement in the demand for the same. Despite being a key packaging material, export demand remains sluggish, weighed down by global economic deceleration and environmental policy restrictions in major importing countries.
• Domestic demand has also not kept pace with growing supply, making it difficult for the market to absorb the excess production. The result is mounting pressure on prices, with limited avenues for quick recovery unless demand rebounds or output is cut.

PET Market News: Global Market Volatility and Price Movements

The cost structure across the polyester value chain has weakened considerably. Global oil prices are under pressure due to several key developments:

• OPEC+ announced production increases
   
• The US enacted new tariff policies
   
• Iraq resumed crude oil exports

As a result, Brent crude oil fell below the critical support level of $70/barrel, weakening the upstream cost foundation for the polyester industry. Consequently:

• PTA prices dropped by 8.57%, from 4,910 RMB/ton to 4,489 RMB/ton between April 1 and April 11.
   
• Ethylene glycol prices also fell by more than 3% in the same period.
   
• Meanwhile, coal-to-gas PET units continued to operate at rates exceeding 70%, adding to the already loose supply conditions.

These developments have significantly eroded the cost support for PET producers, further accelerating the decline in selling prices.

Expert Opinion: Feedstock Trends and Market Outlook

In the near term, PET prices may adjust further based on fluctuations in feedstock prices, especially crude oil. The market outlook remains bearish amid oversupply, weak export growth, and high inventories. Future pricing trends will hinge on demand recovery, plant maintenance schedules, and any reversal in upstream cost pressures.