Asian PET Bottle Prices Slide After Peace Deal, But War-Era Gains Still Largely Intact

Asian PET bottle markets remained under pressure this week, extending a correction that has been underway for several weeks. Prices across China, Southeast Asia, and other key regional markets moved lower as falling feedstock costs and weak buying interest weighed on sentiment. Although some markets showed brief signs of stabilization earlier, the downward trend quickly returned.

The biggest trigger behind the latest decline was the sharp drop in crude oil prices following the announcement of a US-Iran peace agreement. As concerns over supply disruptions eased, energy markets softened significantly, dragging major PET feedstocks lower and reducing production costs across the value chain.

Feedstock weakness became the key driver of the market. Brent crude fell sharply during the week, slipping below the $80/bbl mark, while upstream raw materials such as PX and PTA also recorded substantial declines. MEG prices softened as well, though the decrease was comparatively smaller. The fall in raw material costs encouraged buyers to delay purchases in anticipation of further price reductions.

Market participants across the region reported weaker demand conditions. Chinese suppliers noted that export inquiries slowed considerably as overseas buyers adopted a cautious stance. Producers also highlighted increasing pressure on converters, whose margins remain under strain amid softer end-product demand.

Across Southeast Asia, trading activity stayed subdued. Buyers largely limited purchases to immediate requirements, while many preferred to wait for clearer market direction before committing to fresh volumes. High inventory levels and ongoing expectations of further price corrections continued to suppress buying interest.

Despite the recent downturn, PET bottle prices across Asia still remain well above levels seen before the conflict-driven rally earlier this year. While a portion of the war-related gains has been erased, a significant premium remains embedded in the market.

China's export PET bottle market, for example, continues to trade substantially above pre-conflict levels despite recent losses. Domestic Chinese PET bottle prices have followed a similar pattern, retreating from their highs but remaining considerably stronger than before the rally began.

Southeast Asian import markets have also surrendered part of their earlier gains, yet prices continue to hold noticeably above historical levels. South Korean export values show a similar trend, retaining a large share of the increases achieved during the rally despite the recent correction.

The latest price movements suggest that lower crude oil and feedstock costs have triggered a meaningful adjustment across the PET bottle market. However, with prices still significantly higher than pre-war levels, much of the premium accumulated during the geopolitical rally remains intact. Unless feedstock markets continue to weaken and demand improves meaningfully, buyers are expected to maintain a cautious approach in the near term.

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