Polyethylene terephthalate (PET) spot prices in Europe edged lower this week, extending a period of sluggish demand and oversupply that has left the market mired in one of its weakest phases since early 2021. Contract values, however, were unchanged across the region, offering little indication of recovery as September approaches.
A European market participant told Polymerduniya, “Poor spot demand persistently impacted the European PET market, although some believe the most intense part of the summer slowdown might have passed. Fundamentals showed little change from last week, with the market described as completely quiet. Sellers still hold excessive inventories, while demand has failed to materialize in line with expectations during the preform season.”
Throughout August, virgin PET costs in Europe and the UK fell to their lowest levels since the start of 2021, highlighting the gap between anticipated and actual consumption. Heavy inventories across the value chain and widespread holiday absences compounded the weakness, leaving market players cautious about any near-term rebound. One recycler observed that with the seasonal peak over, downstream pull from packaging is unlikely to stage a significant recovery in the coming weeks.
Spot FD Northwest Europe PET prices were assessed at EUR 925–935/mt, down EUR 10/mt from the prior week. Contract prices for bottle-grade PET remained steady at EUR 1,000–1,005/mt across Germany, Italy, and France, while UK values held at GBP 855–860/mt.
Feedstock movements provided modest upward pressure, with MEG spot prices rising EUR 5/mt to EUR 590–595/mt FD NWE and PTA gaining EUR 10/mt to EUR 714–715/mt FD NWE. However, the increases were insufficient to offset the broader weakness in PET fundamentals.
In Asia, PET prices were steady at USD 770–790/mt FOB Northeast Asia, underlining the global trend of subdued demand and well-supplied markets.
The outlook for European PET remains cautious, with persistent oversupply, muted downstream offtake, and weak virgin PET economics leaving little room for optimism despite signs that the seasonal lull may be nearing its end.
