China Polyethylene Terephthalate (PET) Resin Market Analysis

[Online Quarterly Update] Polyethylene Terephthalate (PET) resin demand in China propelled at an impressive CAGR till 2019 and is anticipated to achieve a healthy growth rate of around 7.58 per cent in the forecast period. PET is a thermoplastic polymer resin, belonging to the polyester

family with PTA and MEG as raw materials. In China, PET has become prime preference in the food and beverage packaging sector owing to its

recyclable nature and offered rigidity. These supreme properties of PET along with its eco-friendly attribute makes it a highly demanded

commodity in the pharmaceutical and healthcare industry.

Demand for PET from the food and beverage industry underwent a steep inclination after the unprecedented outbreak of Coronavirus in the

beginning of 2020. However, the indefinite shutdown of several PET plants in compliance to the lockdown implemented to contain Coronavirus

has plummeted the fundamentals for China PET market. Although, the demand for PET recovered significantly with rising awareness for plastic

packaging on favorable consumer sentiments influenced by the panic following the contagion, the overall demand for PET is anticipated to take

years to reach pre-lockdown levels on prevailing market uncertainties around the globe.

Polyethylene Terephthalate is being manufactured in China on massive capacity by China Resources Chemical Innovative Material Limited, .

Jjiangsu Sangfangxiang Group Co. Ltd, Eastern Chemical Company followed by several others. This immense production capacity of PET in the .

country is also sufficient to cater to the export requirements from countries like India, Saudi Arabia, Algeria, Bangladesh, Egypt, etc. The

commencement of new plants from Yisheng Petrochemical and Zhejiang Wakai New Material in the second quarter of 2020 has led to an

incredible addition to China's PET production capacity promising huge gains in the forecast period.

As PET is produced by utilizing Monothylene Glycol (MEG) and Purified Terephthalic Acid (PTA), the market fundamentals of these feedstocks in

China considerably affects the production of PET. Impacted by severe crash in the petrochemical sector in the first quarter of 2020, market

sentiments of PET across the globe are likely to take couple of years to register a significant recovery. However, with countries gradually

resuming foreign trade activities after grappling Coronavirus outbreak, demand for PET exports from China are anticipated to rebound steadily

by the end of first quarter of 2021.