Supply limitations, logistic constraints and varying demand patterns have created different scenarios for PET in each region. The South American market was already suffering from logistic constraints and reduced PET production, with both aspects having worsened in August due to Indorama shutdown in Brazil, limited imports and higher cost of freight. The European market has stabilized after limited PET and high price volatility in recent months, with all producers now running and PET deliveries in August looking healthy. There has been very little change in North America and strong demand for PET and PET-related products continue the main driver in the region. The US PET operating rates and import volumes are both at high levels, only limited by increasing logistic constraints.
In Asia, producers are concerned as regards the poor margins, which does not leave much room for PET resin prices to drop further. Downstream customers are still cautious on placing big orders as it is approaching the end of peak season. Material is available for export, but logistic constraints have worsened in the last two weeks, with higher cost of freight, limited space and delays at ports. Export prices were between $970-1130/ton fob depending on the country. PET demand is steady in China, but below expectations. Despite being the most competitive PET country, export remain a challenge due to trade measures and increasing logistics constraints.
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