PET Industry Kicks Off 2025 on a High Note with Strong Costs and Resilient Demand

Cost Momentum Drives Growth, Demand Shows Resilience  

While seasonal trends typically signal weaker demand, the polyester industry has demonstrated surprising resilience. Despite expectations of a downturn, the sector continues to show stable performance, characterized by strong fundamentals and firm cost-side support.  

Feedstock Supply Adjustments and Price Trends  

PX and PTA: Production rates for PX and PTA remain high, with ample market liquidity and low processing margins. However, planned post-holiday maintenance for PX and a pricing cycle shift to March-April are anticipated to stabilize and support PX prices in the coming months.  

Ethylene Glycol (MEG):  MEG supplies remain tight. East China’s main ports saw inventories drop to 461,000 tons this week, a decline of 93,000 tons. Robust demand from the polyester sector will likely limit stock accumulation, maintaining historically low inventory levels and supporting MEG prices.  

High Operating Rates and Minimal Inventory Pressure  

Bottle-grade PET resin manufacturers are running at high operating rates with minimal inventory pressure. Current stock levels remain low, supported by consistent demand from the packaging and beverage sectors. Holiday schedules in downstream industries align with previous years, with activity gradually winding down without significantly impacting polyester demand.  

With solid cost momentum and resilient demand, the polyester industry is well-positioned for continued growth, setting an optimistic tone for the early months of 2025.

Reference

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