European PET prices extend decline in late June as weak demand and lower feedstock costs pressure market

Europe's PET market remained under pressure during the second half of June, with prices falling further as weak buying activity and softer feedstock costs continued to weigh on sentiment. After the sharp rally seen earlier this year, the market is now moving through a correction phase, as buyers delay purchases in anticipation of lower prices while suppliers offer bigger discounts to secure sales.

Demand has remained below expectations despite the peak beverage season. Many converters entered June with sufficient inventories and have largely limited purchases to immediate requirements. As a result, suppliers have been forced to reduce offers more aggressively, with bottle-grade PET prices slipping below several key price levels across the region.

Although prices have corrected noticeably from their spring highs, they still remain well above levels seen before the Middle East conflict, indicating that part of the earlier price premium is still reflected in the market.

Market Highlights

Local PET Market

• Demand remained weak despite the seasonal beverage consumption period.
• Suppliers increased discounts to encourage buying interest.
• Spot prices continued to soften across Europe.
• Buyers preferred short-term purchases while waiting for further price corrections.

Import PET Market

• Asian-origin offers remained more competitive than domestic material.
• Lower-priced September cargoes continued to attract attention.
• However, high freight costs and uncertainty over future European prices kept import buying cautious.
• Ongoing discussions around possible EU trade measures also encouraged buyers to remain cautious.

Looking ahead, market participants largely expect the bearish trend to continue into July. Lower feedstock costs, comfortable supply, and cautious buying are expected to keep pressure on prices. While seasonal demand and higher freight rates may provide some support, most players believe the market will remain weak until demand shows a more meaningful recovery.

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