Europe’s PET market edges higher, but heatwave fails to spur strong gains

European PET markets head into August with a cautiously firm tone, even though the uptrend remained limited despite seasonal expectations and the ongoing anti-dumping probe into Vietnamese PET. A modest pickup in demand and disruptions in the import market helped local producers achieve small increases, yet the lack of robust consumption and erratic weather patterns prevented any substantial rally in prices during July.

July hikes absorbed, but larger increases capped by fragile demand

PET bottle markets reversed direction after three straight months of declines. Sellers managed to achieve increases of €10-20/ton on July deals, while a few rollovers were also reported depending on the sector and origin. Some buyers closed their transactions with a modest hike of €10/ton, noting that the situation in the import market has become increasingly chaotic amid the AD investigation on Vietnamese PET. This has triggered a search for alternative supply sources.

Despite suppliers’ firmer stance, most market participants agreed that the current demand is not sturdy enough to support larger price increases. A seller commented, “Demand is in place, but it doesn’t justify more aggressive hikes. With Vietnam out of the picture and other Asian origins facing logistical risks, local supply is becoming a safer choice.” August is expected to bring more local buying as players steer away from risky or restricted imports.

Buyers shift away from Vietnam, explore alternatives

The AD investigation into Vietnamese PET is likely to reshape import dynamics, with most buyers now avoiding this origin altogether. Market participants cited not only the threat of retroactive duties but also EU Commission registrations that have deterred purchases. While some competitive Asian offers remain in the pipeline, uncertainty around delivery timelines and customs risks have prompted a stronger interest in domestic sources.

According to a distributor, “We’re no longer trading Vietnamese material. Pakistan may emerge as a viable option moving forward, given current restrictions and price levels.” However, cheaper import cargoes—mostly concluded before the probe gained momentum—continue to arrive, creating a price gap and keeping the overall market landscape fragmented.

Supply comfortable, but demand lags behind seasonal norms

Distributors and converters confirmed that supply remains adequate, with no major disruptions in production. That said, order entry was considered satisfying through July by some producers, especially in the first half of the month.

Still, players across the chain noted that PET consumption has not lived up to its seasonal expectations. One buyer remarked, “Prices are stable to slightly firmer, but they remain well below the typical levels for this time of year. Demand is there, but far from strong.”

A converter added that current weather patterns have dampened consumption, explaining, “The heat comes and goes. One day it’s hot, then we have a few days of chillier temperatures. This volatility is not helping beverage consumption.” He expects August to remain flat, with prices fluctuating in a narrow band of €10/ton up or down depending on stock levels and spot availability.

August outlook: Stability likely, focus shifts to Q4 and 2026

Heading into August, sentiment appears mixed. While some participants believe that tighter import availability may bring stability or mild firming to the market, others anticipate a quiet month, particularly with several converters planning production halts for 2-3 weeks.

A producer stated that feedstock settlements will play a key role in shaping August trends, but noted that smaller hikes could still be sought depending on market sentiment. Meanwhile, many players are beginning to turn their attention to the final quarter of the year, where demand typically tapers off.

“In Q4, demand will decline, and prices will follow,” one converter said. Elaborating further, he added, “But what’s more interesting is to see how producers will position themselves for 2026, especially with Vietnamese PET likely absent from the market for the foreseeable future.”