Asian PET bottle markets wrap up 2025 firm on cost support; demand recovery still absent

PET markets across Asia wrapped up the end of 2025 on a firmer footing as higher upstream costs revived price momentum. Rising crude oil and feedstock values provided strong cost-side support, prompting producers and traders to lift offers. However, buying interest remained subdued, with downstream demand showing little sign of improvement. Most converters continued to purchase strictly on a hand-to-mouth basis, wary that the current upturn is driven more by costs than by a genuine recovery in consumption.

China leads upturn; S. Korean exports largely unchanged

China spearheaded the regional rebound last week, with both domestic and export PET prices posting weekly gains of up to $30/ton. These increases pushed the weekly import average to three-month highs, while domestic prices’ weekly midpoint reached the strongest level since early October, according to the ChemOrbis Price Index.

The uptick was largely attributed to rising raw material costs, which filtered quickly into PET pricing. Despite firmer prices, buyer response remained muted. Market participants noted that order flows failed to keep pace with the price increases, highlighting the absence of a parallel improvement in downstream demand.

Import PET prices into Southeast Asia edged higher in line with the broader regional trend and firmer offers from China. The rise was mainly cost-driven, while trading activity stayed thin. Meanwhile, offers for South Korean cargoes to export markets were mostly rolled over, reflecting suppliers’ cautious approach amid rising costs and lackluster demand.

Firm upstream values take center stage

Strength in upstream markets was the key driver behind the latest PET rebound. Crude oil prices stabilized at higher levels, underpinning key feedstocks, particularly PX and PTA. PX and PTA prices have largely trended upward since the second half of October, while MEG also moved higher.

During the week ending December 26, Brent crude futures surged nearly 6% in an early-week settlement, reclaiming the $60/bbl mark. Feedstocks followed suit, with spot PX rising $25/ton to $860/ton, PTA gaining $15/ton to $625/ton, and MEG advancing $10/ton to $450/ton, all on a CFR China, cash basis.

These increases significantly lifted production costs for PET producers, leaving limited room for price concessions. Still, market participants cautioned that upside potential may be fragile without a clear pickup in end-use demand, particularly if upstream markets correct. “Prices edged up on the back of higher input costs. However, we feel this increase may be temporary, so we’re in a wait-and-see mode,” said a Malaysian converter.

Sluggish demand continues to cloud outlook

Despite firmer prices, demand conditions across Asia remained uneven. Buyers in both China and Southeast Asia were slow to respond, with many opting to delay purchases amid doubts over the sustainability of the uptrend. The lack of demand support reinforced cautious buying behavior across the region.

A Jiangyin-based producer noted, “Rising raw material prices are pushing PET higher, but buyers are responding sluggishly.” A trader in Ningbo added, “Demand is stronger in India, while it remains relatively weak across Southeast Asia.”

Overall, sluggish consumption and cautious sentiment continue to cap market optimism, suggesting that while PET prices may stay firm on cost support, a sustained rally will depend on clearer signs of downstream demand recovery.