PET prices are on the rise while availability declines. Caroline Murray, senior editor at ICIS, speaks with suppliers and outlines the geopolitical and industrial factors shaping the current landscape.
European polyethylene terephthalate (PET) buyers are facing sharp, take‑it‑or‑leave‑it price increases as supply tightness deepens and production costs climb across the region.
- Supply losses intensify market strain
- Producers impose new surcharges
- Buyers split on purchasing strategy
The latest blow came with Indorama’s declaration of force majeure on PET from its plants in Poland and Lithuania.
The disruption follows a series of capacity losses, including Spain’s Plastiverd exiting the market and a line shutdown at Novapet, also in Spain.
These developments, months of reduced output across Europe and less competition from certain imports have tightened regional availability and eroded buyer flexibility ahead of the seasonal peak.
“The whole situation began because a few months ago, everyone sold like crazy, thinking this was the slow death of the industry. Now it’s a completely different picture,” a supplier said.
End demand has been in the doldrums. Rather, it is technical issues and upstream price hikes, along with the concern around constraints in the supply chain, that have created such bullishness.
Outlook
Market behaviour is now fragmenting. Some buyers are choosing to hold back, resisting the growing sense of panic and betting that availability will stabilise.
Others fear worsening tensions in the Middle East – and the ripple effects on global shipping routes – could impede their supplies heading into the high‑consumption months.
Then there are those who desperately need volume.
“There is evidence of the first shutdowns of preform production due to lack of resin,” a second producer said.
Freight
Although the conflict has been ongoing for a relatively short period, logistical disruption is already being felt.
“Instead of $1,500/container, it’s now $3,000/tonne,” an importer of raw materials said.
Customers are being asked to pay an additional $200/tonne for imports from Indorama, Egypt, on product that is yet to sail, according to sources.
Market participants expect the fallout to persist for at least a month if not more, particularly if geopolitical risks intensify, adding another layer of uncertainty to an already volatile PET landscape.
PET resins can be broadly classified into bottle, fibre or film grade, named according to the downstream applications. Bottle grade is the most commonly traded form of PET resin and is used in bottle and container packaging through blow moulding and thermoforming.
Fibre-grade resin goes into making polyester fibre, while film-grade resin is used in electrical and flexible packaging applications. PET can be compounded with glass fibre for the production of engineering plastics.
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