The European polyethylene terephthalate (PET) market faced renewed downward pressure this week, as spot prices weakened while contract prices held steady. Market participants reported that a combination of elevated stock levels, sluggish post-summer demand, and competitively priced imports weighed on sentiment, leaving sellers with little room to push through additional volumes.
An industry source in Europe told that despite the seasonal return of consumers following the August holidays, demand has not improved. “The PET spot market experienced limited purchasing interest due to consistently elevated stock levels. Sellers found it difficult to add more volumes, as numerous consumers continue to hold ample inventories,” the source said. The persistence of oversupply, together with steady inflows of competitively priced imports, has eroded price stability and pressured spot values lower.
Spot PET prices in Northwest Europe were assessed at €915–925/mt FD, marking a €10/mt decline from the previous week. By contrast, contract markets remained stable, with bottle-grade PET assessed at €1,000–1,005/mt FD in Germany, Italy, and France, and at £855–860/mt FD in the UK, reflecting unchanged levels. Sources remarked that producers are keen to maintain contract price stability, even as spot activity remains muted.
The impact of the ongoing European Commission antidumping probe into PET imports from Vietnam is beginning to shape trade flows. Market participants reported a noticeable decline in orders from Vietnam, as buyers became cautious in anticipation of possible duties that could be introduced before the year’s end. Traders noted that this regulatory uncertainty has added another layer of caution among converters, many of whom are holding back from forward purchases.
Upstream, feedstock trends were mixed. Monoethylene glycol (MEG) spot prices were unchanged at €590–595/mt FD NWE, while purified terephthalic acid (PTA) gained €5/mt week on week to settle at €719–720/mt FD NWE. The modest rise in PTA failed to provide any real support to PET pricing, given the prevailing oversupply and muted downstream activity.
Meanwhile, PET prices in Asia held steady at USD 770–790/mt FOB Northeast Asia, highlighting a divergence between the relative stability in Asian markets and the pressure faced in Europe.
Looking ahead, industry observers suggest that unless European demand recovers meaningfully in September, or producers implement more aggressive production cutbacks, spot PET prices are likely to remain under pressure. The combination of high inventories, subdued downstream orders, and competitive import offers continues to cloud the near-term outlook for the European PET market.
