PET Chip Market Faces Bearish Pressure Amid Cost Weakness and Oversupply Concerns

Stable PET Prices in India Amid Global Cost Decline

• Wankai PET grades WK-801 and WK-821 for Ahmedabad, Mundra, and Mumbai locations:
• For grade WK-801, prices are quoted at ₹83,000/MT in Ahmedabad, Mundra, and Mumbai.
• For grade WK-821, prices stand at ₹84,000/MT in Ahmedabad and Mumbai, while in Mundra it is slightly lower at ₹83,500/MT.
• The fall in international crude oil prices—driven by OPEC+ production outlook and U.S.–Iran nuclear discussions—pushed Brent crude below $70/barrel, weighing on upstream raw materials. 
• PTA spot prices dropped to 678 USD/ton, while ethylene glycol (MEG) fell to 624 USD/ton. Despite a 70 USD/ton increase in polymerization costs, industry margins further deteriorated to -44 USD/ton, highlighting weak cost support for PET.

Supply and Demand: China’s Oversupply Weighs on Asian PET Market

• In the China market, supply-side pressure remained high, with the industry’s operating rate steady at 87.93% and weekly output reaching 365,000 tons.
• Concerns around oversupply are growing as China is expected to add 2.15 million tons of new capacity in 2025. Inventory levels remain elevated at 16–18 days, despite spot tightness in areas like Tianjin and Zhangjiagang.
• On the demand front, the soft drink sector has resumed production at 80%–90% capacity. However, downstream buying remains cautious due to high end-product inventories, limiting procurement to essential small-lot orders. 
• While February exports rose 27.3% YoY to 487,600 tons, momentum is curbed by slowing global economic growth and overseas anti-dumping actions.

Polymer Market News: Jindal Films Fire Shocks BOPP Market, Causes Price Surge

• EU starts antidumping probe into Vietnam PET imports. Targets conclusion within 14 months; European PET market faces low demand.
• Traders report sluggish demand in Asia, blaming China’s aggressive production for destroying the market. Meanwhile, EVA faces potential tariff threats in the European Union, as part of retaliatory measures against US trade actions.
• A massive fire broke out at Jindal Films' Nashik plant, a major player in India’s BOPP (Biaxially Oriented Polypropylene) sector, causing significant damage and prompting the company to declare force majeure. 
• The incident triggered a sharp surge in film prices, with BOPP and BOPET films rising by ₹15–20/kg. The market reacted swiftly with panic buying, inventory stocking, and the implementation of stricter payment terms. 
• In the aftermath, alternative manufacturers have begun stepping in to address the sudden supply shortfall.
• After 56 hours, the fire was successfully brought under control. However, the market remains watchful, awaiting official updates on the extent of the damage and the timeline for resumption of operations, which are expected to play a critical role in shaping future price movements.
• Reliance Industries Limited (RIL) has announced a price increase of ₹1,000/MT for PVC, effective from May 24, 2025.

Market Opinion: Bearish Sentiment Persists in PET Market

• Given the lack of cost-side support and sluggish downstream demand, the polyester bottle chip market is expected to remain under pressure in the short term. 
• Prices may continue to fluctuate at low levels, with any significant rebound dependent on external developments, such as changes in crude oil prices, plant operating rates, and signs of demand recovery domestically and internationally.