China's PET Bottle Chip Prices Surge Amid Rising Costs and Cautious Demand
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PET prices in New Delhi rose to ₹92/kg, driven by higher raw material costs amid U.S. sanctions on Russia and increased energy demand. While production costs remain low, cautious downstream buying has limited trading activity. The market is expected to remain volatile, closely tracking international oil price movements and supply conditions.
Key Highlights
- PET Price Rise: New Delhi saw a ₹2/kg increase in PET prices since February 1.
- Cost Pressures: U.S. sanctions and oil supply disruptions pushed up PET raw material costs.
- Supply Adjustments: SASA's new PET line (Turkey) and MOL Petrochemicals’ butadiene unit (Hungary) to increase capacity.
- Market Forecast: PET prices in Asia expected to fluctuate between $865-$905/ton, tracking oil price volatility.
PET Price Trends: Upward Movement in Key Markets
- In New Delhi, the price of PET stood at Rs. 92/kg on February 6, 2025, reflecting a Rs. 2/kg increase from Rs. 90/kg on February 1, 2025. Compared to January 13, when the price was also Rs. 90/kg, PET prices have shown an overall upward movement.
- The average selling price of PET bottle chips in China stood at 882 USD/ton, reflecting a strong upward trend observed between January 13 and 17.
Demand & Supply: Global Factors Influencing PET Market
- The PET bottle chips market experienced mixed dynamics driven by various external factors. On the cost side, a new round of U.S. sanctions on Russia disrupted oil supplies, exacerbating concerns over global supply shortages and pushing international oil prices higher.
- Simultaneously, a cold wave in the U.S. increased energy demand, further supporting raw material costs for PET, particularly PTA, which is witnessing facility maintenance that has tightened supply.
- Meanwhile, processing costs in the PET bottle chip industry remain low, encouraging factories to raise prices. Despite these cost-driven supports, downstream and terminal markets displayed caution due to the significant rise in bottle chip prices.
- Buyer inquiries were limited, and only select areas with urgent requirements triggered transactions. This cautious sentiment, combined with the upcoming Spring Festival holiday, has resulted in relatively low overall trading volumes, leaving the market in a situation where there is value, but limited active trading.
Industry Updates: New Production Lines & Supply Adjustments
- MOL Petrochemicals has increased the operating rates at its Butadiene Unit following a brief maintenance period in January. The unit, located in Tiszaujvaros, Hungary, has a production capacity of 130,000 tons per year.
- SASA is set to commence operations of its new Polyethylene Terephthalate (PET) line in mid-February to early March 2025. Located in Adana, Turkey, the line boasts a production capacity of 483,000 tons per year.
- Shanghai SECCO Petrochemical raised its weekly Acrylonitrile (ACN) prices in China by CNY 500 per metric ton, with prices now assessed at CNY 12,500 per metric ton on an ex-tank basis.
- Petrochemical Industries Company plans to restart its Polypropylene (PP) plant on February 20, 2025, following planned maintenance. The plant, located in Shuaiba, Kuwait, has a production capacity of 150,000 tons per year.
- Meanwhile, Billion from Vietnam revised its offer for PET to US$900 per metric ton CFR Nhava Sheva/Mundra for shipments scheduled in February and March.
Market Outlook: Volatility in Oil Prices & PET Price Forecasts
It is expected that international oil prices will remain volatile, continuing to support current cost levels. Consequently, the PET bottle chip market is anticipated to follow the raw material price trend, with prices in Asian market forecast to fluctuate between 865 and 905 USD/ton. Monitoring of demand and equipment status will be crucial.
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