PET (Polyethylene Terephthalate) prices in Asia remained largely steady this week, even as the market faced mounting headwinds from dropping upstream costs, shifting trade policies, and weak seasonal demand. According to a source in the region, geopolitical tension stemming from the Russia-Ukraine conflict has heightened fears of supply disruptions, while hopes for a U.S. Federal Reserve rate cut have offered a more optimistic demand outlook. These opposing forces have helped underpin oil prices, which feed into PET cost structures.
Producers in Asia were observed easing offers in some instances, driven by declining prices of PTA (Purified Terephthalic Acid), a key feedstock. Yet the margin relief from lower costs has been minimal, as overall market activity stayed subdued. Demand for bottle-grade PET, in particular, remained weak. Cooler weather across many parts of the region has depressed consumption of bottled beverages, one of the more volume-sensitive end-uses. Buyers largely held back from aggressive procurement, choosing instead to wait for clearer signals from feedstock trends or downstream demand recovery.
In price assessments, FOB Northeast Asia bottle-grade PET held at USD 770-790/mt, unchanged from the previous week. South East Asia exports of bottle-grade resin similarly rolled over, assessed at USD 850-880/mt. In India, FOB/CFR PET prices remained stable at USD 830-850/mt, while Pakistan and Sri Lanka each saw steady levels at USD 870-910/mt and USD 850-900/mt respectively. Bangladesh also saw little movement, with PET assessed at about USD 840-870/mt.
A key catalyst in recent days has been the U.S. government’s decision, effective September 8, 2025, to impose full tariffs on PET and recycled PET (rPET) imports. With HS codes 3907.61.00 and 3907.69.00 now included under the new policy, exporters from nations like India, Vietnam, Thailand, and South Korea are adjusting plans and routes. These tariffs are expected to reduce U.S. import demand for PET from Asia and rPET globally, potentially diverting cargoes toward nearby markets such as India, where domestic demand is already under stress.
Though feedstock assessments offered mild relief: MEG (Monoethylene Glycol) in China dropped to about USD 515-520/mt, while CFR South East Asia was assessed at USD 520-525/mt, down USD 5–10/mt. PTA assessments held at USD 620-630/mt in Far East Asia and USD 640-650/mt in Southeast Asia.
Looking ahead, the short-term outlook for Asian PET appears muted. Unless there is an unexpected uptick in demand, especially from the beverage and consumer packaging sectors, or sharp changes in feedstock supply, prices are unlikely to move significantly. The new U.S. tariffs may continue to weigh on export opportunities, while surplus supply and cautious purchasing behavior are expected to keep market momentum low.
