Imported PET Prices Weaken on Raw Material Slump and Weak Demand
PET prices dropped last week due to weak raw material costs and sluggish demand, despite a slight price hike by Wankai. Leading Chinese producers have begun output cuts, but high inventories persist. Exports rose in May, though global competitiveness is under pressure from higher freight rates and US anti-dumping tariffs.
Key Highlights:
- PET prices down by 1.19% globally; Wankai raised domestic rates by ₹500/MT.
- Major producers cut output by 20%, but inventories remain high.
- Demand remains weak, with soft drink producers limiting purchases.
- Exports up in May, but outlook clouded by rising freight and US tariffs.
China Domestic Market Price
- PET (polyester bottle chips) prices continued their downward trajectory last week. As of June 30th, the average selling price stood at USD 840/ton, slipping from USD 850/ton marking a weekly decrease of 1.19%.
- As of July 7, 2025, PET prices for Wankai brand have seen a modest increase of ₹500/MT compared to last week. The WK-801 grade is now being offered at ₹85,500/MT, while the WK-821 grade is priced at ₹86,250/MT, both available at Mundra Port.
- This drop was driven by weakening raw material costs and sluggish downstream demand. Spot transactions showed reductions of USD 3–7/ton across various sellers.
Market Supply Dynamics
- Supply-side adjustments have started to unfold, with major producers like Wankai New Materials, Yisheng, and China Resources collectively cutting output by 20%, affecting 2.59 million tons of production capacity.
- Despite this, the impact has yet to reflect significantly on the ground. The operating rate is expected to fall from 89.3% to 77%, but inventory levels remain high.
- On the demand side, soft drink manufacturers are running at 80–90% capacity, but finished goods stockpiles are still elevated, leading to only small, essential procurements and little price-push momentum.
Market News: Raw Material Costs Continue Downward Trend
- Raw materials pressure: Crude oil, PTA, and ethylene glycol prices have all weakened, applying further cost-side pressure.
- Exports: May saw PET export volumes reach 619,000 tons, up 38,200 tons m-o-m. However, higher shipping costs and the looming 125% US anti-dumping tariff have started to dampen global competitiveness and buyer sentiment.
- Production Cut Watch: A total of 4.9 million tons worth of production capacity is currently under long-term shutdown or under review.
Expert Opinion: Rangebound With Weak Rebound Signals
In the near term, the PET market is likely to move in a narrow adjustment range, with no immediate signs of a strong rebound. The outlook will depend heavily on the effective execution of production curbs, raw material price trends, and any signs of demand recovery, both domestically and internationally.