The polyethylene terephthalate (PET) industry has gradually walked out of sluggish plight. Since the raw material purified terephthalic acid (PTA) is in abundant supply, and demands remain exuberant, the market presents optimistic prospects. Manufacturers are adapting to the pace of new markets through facility output expansion, large mergers, and new plants construction.

The latest report by Nexant, a consulting firm based in the United States, revealed the demand of global bottle-grade PET resin stood at 16.2 million tons in 2010. It will grow at an average annual rate of 6 percent in the next decade. Nexant said demands would see faster growth in central Europe, Eastern Europe, Africa and China. The annual growth rate will reach 7-9 percent. Thailand-based Indorama estimated the global PET resins, polyester fibers and filament consumptions would increase at an annual rate of 6.5-7percent.

So far this year, the high market prices have augmented confidence in the industrial sector. At present, PET prices are maintained at 1,400 euros per ton in Europe. With short supplies, the prices soared to 1,650 euros per ton in winter (FD, Europe). In March this year, the price of Asia’s bottle-grade PET chips climbed to a record high in 16 years, reaching 1,850 U.S dollars per ton (FOB, China), supported by raw material PTA and ethylene glycol prices. Korean manufacturers even asked for 1,930 U.S. dollars per ton (FOB, Korea). In early June, America’s bottle-grade PET resin was priced around 1.00-1.03 U.S. dollars per pound, compared with 75 cents per pound in the same period of last year.

Source: China National Chemical Information Center