Weak Costs and Cautious Demand Pressure PET Market

Key Highlights

• Price Trends: RELIANCE PET priced at ₹91,000/MT in India, while China’s PET bottle chip market dropped by 0.48% to $836/ton as of December 6th.
• Demand Outlook: Downstream demand remains cautious, with limited trading activity and subdued momentum in the PET market.
• Supply Developments: Global supply uncertainty persists, with disruptions such as US refined oil inventory increases impacting costs.
• Industry News: Key updates include production resumption at PetroChina Guangdong’s PP unit and SK Geo Centric’s maintenance at No.1 PX unit.

Indian PET Prices Steady Amid Global Weakness

• In the Indian market, RELIANCE PET 81-84 (RELPET G5841) is priced at ₹91,000/MT in Mundra.
• Comparatively, in the Chinese region, the PET bottle chip market witnessed weak fluctuations last week, with the average market price as of December 6th at approximately $836/ton, marking a decrease of $4/ton or 0.48% from the beginning of the month.

China’s PET Market Slips on Low Demand and Cost Pressures

• The International Energy Agency (IEA) highlighted last week that the market supply situation is slightly unstable, and the demand outlook remains unclear. Ahead of the OPEC meeting, the market has adopted a wait-and-see approach, causing international oil prices to trend downwards, which negatively impacted costs.
• Despite this, polyester bottle chip factory quotations have remained firm, and actual market negotiations have stayed stable.
• The market had been optimistic about OPEC+ delaying production increases, providing some support, but the unexpected rise in US refined oil inventories exerted pressure on international oil prices, leading to a reversal in gains.
• This, in turn, caused a decrease in polyester raw material prices negatively impacting the polyester bottle chip market, which saw a decline in focus.
• Downstream and end users are still adopting a cautious approach, with low-level demand being met primarily, resulting in limited actual trading volume. Consequently, the overall PET market lacks sufficient momentum

Supply Disruptions and Oil Price Volatility Impact Polymer Market

• SK Geo Centric eyes maintenance at No.1 PX unit.
• PetroChina Guangdong resumes production at No.2 PP unit.
• Thai Plast and Chemicals likely to resume production at No.1 VCM plant.
• Polyplastics - One of the largest biodiesel fuel production plants in Japan uses “PURAMEM®” membrane and has started commercial operation.
• Jiangsu Sailboat commences commercial operations at new carbonates plant.
• Showa Yokkaichi Sekiyu mulls turnaround at RFCC unit.

Expert Opinion on Polymer Market Trends

• The overall cost pressure remains weak, and downstream procurement continues to be cautious. There is currently no significant market support, making it difficult for the industry to recover profits. The polyester vibrating plate market is expected to fluctuate within a certain range this week, with the price operating in East China between 6,050 mer price