Imported PET Prices Weaken on Raw Material Slump and Weak Demand

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.