HomeCompany newsChina's PET Industry Surges on Dual Momentum of Macro Stimulus and Rising Demand

China's PET Industry Surges on Dual Momentum of Macro Stimulus and Rising Demand

2025-05-13

Wankai New Materials Co., Ltd., a major global producer and exporter of Polyethylene Terephthalate (PET) resin, observes a positive trend in the polyester industry driven by favorable macroeconomic policies and seasonal demand. Rising upstream raw material prices, increased operating rates, and growing domestic and international orders indicate that China's PET sector continues to demonstrate resilience and stability in its supply chain.

Macro Policy Boosts Confidence, Trade Environment Eases

In early May, the People's Bank of China announced interest rate and reserve requirement cuts that exceeded market expectations, providing stronger support to the real economy and capital markets. At the same time, a positive breakthrough in China-U.S. trade relations injected further momentum into export-oriented industries.

During the high-level China-U.S. economic dialogue held in Geneva from May 10–11, both parties agreed to roll back certain tariffs within 90 days. The U.S. will temporarily suspend 24% additional tariffs on Chinese goods, while China will reduce countermeasures on American imports.

Driven by favorable macroeconomic factors, global capital markets have responded positively. U.S. stock futures rose over 2%, the offshore RMB surged by more than 400 basis points, and the U.S. dollar index strengthened, reflecting optimism about the improving international trade environment. At the same time, risk assets like gold and U.S. Treasury yields decreased, signaling a cooling of market risk-aversion.

Polyester Chain Operating Near Full Capacity, Raw Material Inventory Decreases

With effective destocking completed before the Labor Day holiday, production across China's polyester sector has rebounded sharply. As of last week, domestic polyester plant operating rates stood at approximately 94.2%, reaching multi-year seasonal highs.

This has led to a strong pull for upstream raw materials such as PTA and MEG. The narrowing supply-demand gap has pushed spot prices higher, with processing margins for PX-PTA and PTA-MEG both rising to year-to-date peaks—signaling a strengthening polyester chain and improving profitability for producers.

Summer Demand Heats Up, Overseas and Domestic Buying Accelerates

Entering May, rising temperatures across the Northern Hemisphere have stimulated demand for beverages, bottled water, and other fast-moving consumer goods, directly boosting consumption of PET packaging materials. In anticipation of potential market uncertainties, overseas buyers have also accelerated stockpiling activities, leading to more active export market trading.

Domestically, China's tourism and dining sectors are quickly recovering, unleashing pent-up demand for rigid plastic packaging. Many downstream processors report a noticeable acceleration in raw material procurement and a modest increase in orders compared to the same period last year—offering solid price support for PET resins.

Outlook: Short-Term Strength with a Watchful Eye on End-User Demand

The convergence of improved macro conditions and rising demand has created a bullish short-term outlook for China's polyester and PET resin markets. However, further developments will hinge on the pace of new raw material supply and the sustainability of downstream consumption, particularly export order fulfillment.

At Wankai New Materials, we remain committed to ensuring stable and high-quality PET resin supply to global partners. With China's cost efficiency, economies of scale, and industry expertise, we continue to serve as a reliable source of PET resin amid evolving global trade dynamics.