PET Resin Prices Under Pressure Amid Weak Demand and Oversupply Concerns

Key Highlights

• PET resin prices range from ₹85,000–₹86,500/MT across Indian cities.
• Chinese PET averages at $840/ton amid weak raw material and demand dynamics.
• 2.15 million tons of new global capacity expected by 2025, adding supply pressure.
• U.S. suppliers like Nan Ya and Alpek announce price hikes due to cost and tariff concerns.

Current PET Resin Prices Across Key Indian Markets 

• PET resin (Brand: Wankai, Grade: WK-801) is priced at ₹86,500/MT in Hyderabad and Mumbai, while Ahmedabad offers it at ₹85,500/MT. 
• The lowest rates are in Mundra and Daman at ₹85,000/MT, reflecting regional price variations in India. 
• Meanwhile, the average sales price of Chinese PET stands at USD 840/ton, influenced by weak raw material costs and sluggish downstream demand. 
• The market witnessed a downward price trend last week due to declining feedstock values and limited buying activity.

Oversupply, Inventory Pressure, and Weak Demand

• The PET market remains under pressure from oversupply concerns. The polyester bottle chip industry is nearing the end of its expansion phase, with 2.15 million tons of new production capacity expected by 2025. 
• High inventory levels and weak demand have intensified price pressures. Despite peak-season expectations in the textile and clothing sector, actual order flow remains sluggish.
• Weaving enterprises' raw material inventory has dropped to 8.26 days, while finished product stocks have increased to 23.64 days, signaling cautious purchasing behavior. Additionally, ethylene glycol port inventory has risen to 584,400 tons, further indicating a supply glut.
• On the cost side, crude oil prices have fallen below $70 per barrel, reducing support for the polyester value chain. Though PTA processing fees have rebounded due to plant maintenance, upcoming production capacity expansions are likely to weigh on profitability.

Polymer News and Key Global Developments

• Wankai Zhejiang has resumed operations at its 650,000-ton/year PET bottle chip line in Haining, China, adding supply to the market. 
• Meanwhile, Zhejiang Petroleum & Chemical (ZPC) has taken its 600,000-ton/year aromatics units in Zhoushan offline for maintenance, potentially tightening feedstock availability. 
• In pricing developments, Nan Ya Plastics Corporation and Alpek have both announced $110/MT (5¢/lb) PET price increases in the USA, effective 1st and 2nd April 2025, respectively. 
• Nan Ya cited rising production costs, while Alpek attributed its hike to potential tariffs affecting imports from Canada and Mexico. 

Expert Opinion: Price Outlook Clouded by Cost Weakness

• Experts anticipate that PET resin prices will continue to face downward pressure due to weak cost support and excess supply. The absence of significant demand recovery and sustained high production rates may prevent any strong price rebound. 
• Market participants should closely monitor crude oil trends, raw material costs, and the impact of new production capacity additions. In the near term, PET prices are expected to fluctuate within a narrow range, with limited upside potential unless demand conditions improve.