Asian PET Prices Stay Weak Amid Oversupply, Sluggish Demand

Key Highlights

1. PET prices in India range from ₹78,300/MT to ₹79,700/MT across locations.
2. Supply growth is driven by high production rates and new capacity additions.
3. Demand remains soft due to macroeconomic slowdown and regulatory pressures.
4. Market outlook stays weak unless demand or crude oil prices rebound unexpectedly.

Polymer Price: PET Price Movement Shows Mild Volatility

• The price trend of polyester bottle flakes (PET) in Asia displayed a weak oscillation pattern, with an initial dip followed by a mild recovery. As of April 18, 2025, the average market price of PET bottle flakes stood at 787 USD/ton, currently standing at 798.46 USD/ton. 
• As of May 7, 2025, the price of Wankai PET grades WK-801 and WK-821 across various Indian locations shows minor variation. 
• In Hyderabad, both grades WK-801 and WK-821 are priced at ₹79,700/MT. In Ahmedabad, WK-801 and WK-821 are available at ₹78,500/MT. 
• Daman reports WK-821 and WK-801 at ₹78,300/MT. In Mundra, both grades are similarly priced at ₹78,300/MT. Meanwhile, Mumbai lists both WK-801 and WK-821 at ₹79,300/MT. 
• Overall, prices range between ₹78,300/MT and ₹79,700/MT, with Hyderabad recording the highest and Daman/Mundra the lowest rates.

Asian PET Market Demand & Supply Dynamics

A. Supply Side

• The supply of PET bottle flakes continues to rise due to the ongoing release of new production capacities.
• Operating rates at PET production facilities remain consistently high, indicating robust manufacturing activity and sufficient availability of material.
• Feedstock availability is stable but bearish. Ethylene glycol (EG) inventories at ports surged to 584,400 tons, reflecting ample supply. Coal-to-gas-based EG plants maintained high operating rates, over 70%, further reinforcing the oversupplied market conditions.
• On the PTA front, although processing fees briefly rebounded to 325 RMB/ton, long-term outlook remains pressured due to new capacity additions (expected 4.5 million tons in 2025) and increasing import flows.

B. Demand Side:

Short-term demand recovery remains limited. Global macroeconomic uncertainties and sluggish consumption patterns continue to weigh on demand for polyester bottle flakes.
End-user industries are facing headwinds such as:

• Slowing global economic activity,
• Weak downstream procurement sentiment, and
• Tighter environmental regulations, which are especially impactful in key Asian manufacturing hubs.

As a result, the supply-demand gap persists, with supply growth outpacing demand recovery, exerting downward pressure on prices.

Polymer Market News: RIL Schemes Signal Push for Sales in Polymers

• RIL announced an Early Bird Scheme of Rs. 2500/MT in Polypropylene (PP) effective from 1st May to 14th May, 2025.
• It's heard that RIL announced a scheme in Polyvinyl Chloride (PVC) based on APR signed for May 2025. The scheme includes two slabs: Rs. 750/MT for APRs ≥8.33% and <10%, and Rs. 1500/MT for APRs ≥10%. The quantities to be lifted will be confirmed individually.
• RIL also announced a Special Incentive Scheme in PP grades for May 2025. The scheme includes two slabs based on non-zero month average lifting of FY24-25: X as 90% and Y as 100%.
• RIL announced both an Early Bird and Incentive Scheme in Polyethylene (PE) as follows:
  1. Early Bird Incentive of Rs. 2500/MT on all domestic sales registered between 1st May to 15th May in all LLDPE/HDPE grades.
  2. For LDPE, scheme applies to all P/NP/Utility sales with:
      A. X1: ≥7% and <9% of FY26 APPQ
      B. X2: ≥9% of FY26 APPQ
• Disclaimer: This information is sourced from the market and is for general reference only. Users should verify details independently with the concerned company. We are not liable for any errors, omissions, or outcomes from its use.

Market Expectation: Outlook Remains Weak Amid Crude, Demand Drag

Looking ahead, the PET bottle flake market is expected to remain under weak and volatile pressure in the short term.
Key influencing factors include:

• Continued weakness in global crude oil prices,
   
• Persistent overcapacity and inventory buildup, and
   
• Lack of near-term demand catalysts.

However, any unexpected uptick in demand, or a sustained rebound in crude oil prices, may offer moderate upside potential.