Asian PET Bottle Falls Sharply After Peace Deal, But War Premium Is Far From Gone

Asian PET bottle markets extended their downward trend this week as prices across the region declined further following the recent US-Iran peace agreement. The brief recovery seen in China’s domestic market during the previous week quickly faded, with bearish sentiment returning across the polyester chain.

The latest weakness was mainly driven by a sharp fall in crude oil and key feedstock prices. After concerns over supply disruptions eased, Brent crude dropped below the $80/bbl mark, while PX, PTA, and MEG values also moved lower. The softer cost environment accelerated selling pressure on PET bottle markets across Asia.

Market participants reported that weak demand and comfortable supply conditions continued to weigh heavily on sentiment. Buyers in China and Southeast Asia largely stayed cautious, limiting purchases and waiting for additional price reductions. Exporters also noted slower overseas inquiries as many customers adopted a wait-and-see approach after the decline in oil prices.

Despite the recent correction, PET bottle prices remain significantly above levels seen before the conflict-driven rally earlier this year. Chinese export prices are still roughly 29% above pre-war levels, while domestic Chinese prices remain about 25% higher. In Southeast Asia, import prices continue to trade around 32% above pre-war levels, and South Korean export prices remain roughly 34% higher than before the rally.

These figures indicate that only a portion of the war-driven gains has been erased so far. Although lower crude and feedstock costs have triggered a noticeable correction, a sizeable premium remains embedded in regional PET bottle markets.

Looking ahead, traders expect pressure on prices to continue as long as demand stays weak and buyers remain reluctant to rebuild inventories. However, the market has not yet fully returned to pre-war pricing levels, suggesting that further normalization may still be possible in the coming weeks.

Stay ahead of market trends with the Credco app. For any queries, please reach out via WhatsApp at +91 8448083211.