Pressure mounts on Europe’s PET market: Spot prices sink to 4-year low as May kicks off

European PET markets opened May with widespread price reductions, extending April’s losses. Local offers surfaced with decreases of €40-70/ton, while CIF import offers dipped below the €900/ton threshold, reflecting increasingly aggressive competition from Asian suppliers. The pressure has mounted this month, with notable declines pulling spot PET bottle prices down to more than 4-year lows.

Brief uptrend: From February gains to April slippage

It’s worth recalling that PET prices bounced back briefly in February, driven by cost-side support and weak euro/dollar parity. March followed with minor hikes or even stability, but resistance soon emerged as monomer increases were modest and energy markets offered limited upward pressure.

That rally proved short-lived, with prices falling by €30-50/ton in April, and now the bearish trend has deepened in May, underscoring the fragility of recovery hopes in the face of stubbornly soft demand and rising global competition.

As for May, a distributor noted, “We’ve applied €40-50/ton cuts for May, but we’re holding off on any final adjustments until the April PX contract is fully settled.” He added that demand shows no signs of recovery from April’s muted pace, leaving sellers with little leverage to push back.

According to ChemOrbis Price Index, May drops sent spot PET bottle prices to more than a 4-year low on a weekly average. Prices on a weekly average broke below the €1000/ton FD level for the first time since February 2021.



Imports from Asia regain appeal despite delays

Import offers had started to emerge at competitive levels as of late Q1, which was mainly due to the weaker US dollar. Several buyers reported securing competitively priced import cargos from Southeast Asia and the Far East. Although these cargos had previously faced delivery delays, the persistent price advantage and geopolitical pressure—particularly in light of trade war concerns—are motivating Asian suppliers to fight for market share.

Buyers prefer to hedge with diversified sourcing as imports stir competition. “Import offers have become attractive again,” a buyer remarked. Elaborating further, he said, “However, we’re approaching the market cautiously. Given high inventory levels and ongoing volatility, we prefer to diversify our sourcing instead of committing to large-volume purchases.”

In the import market, recent spot PET bottle offers from Asia were reported at or below the €900/ton CIF threshold both in Italy and Northwest Europe.

Demand steady, but far from strong

End-product demand remains stable, with some buyers even observing stronger activity in PET compared to other polymers like PE. However, it’s generally weak considering the seasonal patterns.

One converter, who secured local material with €50/ton reductions, reported being covered for May, barring any unexpected spike in demand. “We may consider buying additional cargoes if market activity increases,” he noted, “but for now, there’s no urgency to replenish stocks under current conditions.”

Outlook remains cautious into summer

Looking ahead, the sentiment for June remains broadly murky, with players not anticipating any significant swings due to still-flat demand and high stock levels. A large-scale buyer explained, “We don’t expect a shift next month. Crude oil markets remain weak, and local producers won’t be able to lift prices easily unless demand surprises us. Further slight drops or a plateau seem more realistic for June.”

Whether the onset of peak seasonal demand in July will reverse the current trend and support price increases remains uncertain. Much will depend on the direction of crude oil and freight markets, alongside the forthcoming pricing strategies of Asian suppliers.