Asia PET prices reverse slump as oil tests new highs

In Asia, PET prices posted losses during the final week of February despite soaring energy prices, taking a breather from an uptrend in place since mid-December 2021. As March kicked off, prices have resumed an uptrend, albeit slightly, as the rally in crude oil prices has gained momentum.



After hurtling toward $100 per barrel over the past week, global oil benchmarks tested a new high of $110 per barrel during Wednesday sessions. This has not only improved the market sentiment but also boosted upstream prices for PET.

PET fails to catch up with the pace of gains in oil so far

However, it is critical to underline that the gains in crude oil prices have found a limited reflection on PET prices so far.

Affirming this, a Chinese trader commented, “The amount of price increase for PET is not catching up with the rally in crude oil prices. Suppliers’ sales pressure is low as they oversold allocation and orders up to May have been booked. The number of done deals is rare with buyers mostly securing their position earlier on. The near-term trend will depend on the movement of crude oil.”

On a side note, demand for PET has increased this week, particularly inside China while PET supply has remained tight regionally.

Weekly gains for PET are limited to $10-25

In China, export PET bottle offers are assessed stable to $20/ton higher from last week at $1130-1180/ton FOB, cash. Local PET prices are assessed CNY100-140/ton ($16-22/ton) higher from last week at CNY7,940-8,300/ton ($1111-1162/ton excl. VAT) ex-warehouse China, cash inc VAT basis.

In Southeast Asia, import PET bottle prices for all origins are also assessed $10/ton higher from last week at $1190-1250/ton on CIF, cash basis.

Upstream markets mostly follow oil higher

Upstream prices have also increased in the past two weeks in line with crude oil, with spot PX prices rising the most.

ChemOrbis Price Wizard shows that spot paraxylene (PX) prices on FOB Korea basis have gained $45/ton to $1115/ton. Spot PTA prices on CFR China basis have also increased $30/ton within the same period to stand at $850/ton.

Spot MEG prices on CFR China basis, on the other hand, have continued to decrease, albeit at a slower pace as rocketing oil prices have offset the impact of ample supply and weak downstream demand to some extent. ChemOrbis data shows that they are standing at $655/ton, down from $10/ton from last week.