Europe PET market mood turns bullish after spike in Asia upstream prices

Confidence is picking up in the European polyethylene terephthalate (PET) market following a spike in Asian upstream prices and increasing uncertainty around freight movements. A change in sentiment comes after months of muted demand and softer pricing, prompting many market players to reassess short-term positions.

• PET sellers put brakes on price decreases
• Asia PX price surge key to Europe developments
• Container freight rate chaos muddies water

Paraxylene

“After the increases in paraxylene (PX) in Asia, we froze our offers, then we came with [higher PET offers]…If PX doesn’t drop, everyone will be forced to increase PET pricing,” a PET seller said.

Global dynamics are volatile at best, so settling on a direction for PET has not been easy, but previous price lows have been abandoned.

“Something happened between Monday and Wednesday…a supplier provided us with the information that everything is stopped because of the increase in PX caused by China and the US solving the duties,” a buyer said.

Amid the erratic price moves along the supply chain is the lack of an upstream April PX Europe contract price (ECP), which has confounded the PET market.

The PX ECP remains under discussion and an agreement could take weeks, according to one player involved in talks.
Reasons behind the delay are unclear, although some market sources point to very low PX prices in the influential Asian market as one of the potential causes, as the average PX price for April in that region was down 31% year on year.

Softer values in Asia, coupled with lower feedstock mixed xylenes (MX) costs in April were expected to bring down the PX ECP substantially, but ideas as to where the settlement may land vary.
The delay to feedstock price settlements is causing confusion and adding to complexities on PET.

Seasonal end demand has yet to shine through, so this coupled with a flurry of import arrivals has negatively impacted demand for domestic PET resin.

So much so that domestic prices undercut those relevant to recent import arrivals.

Shipping

Container freight rates are key to PET price discussions in Europe.

The 90-day reprieve on the new US:China tariffs looks like it is resulting in a concentration of shipments to the US, and potentially higher freight rates.

“Transportation can become messy and result in increased pricing and delays. Rotterdam is already at 96% of capacity. There are terrible delays there,” a source said.

There do, however, seem to be two opposing forces, as the potential reopening of the Red Sea route to ships that have had to avoid it, offers a bearish scenario.

Should the Red Sea deal hold, it is likely to collapse freight rates, exposing Europeans once again to a barrage of imports.

Nobody expects an instant remedy, many assuming it will take months to ensure the confidence of shippers before a real impact emerges. There is no sign of an uptick in traffic through Suez as yet.

Overall, markets are chaotic. Buyers may be inclined to purchase more because they believe the bottom has been reached in Europe.

How sustainable the situation is though, is up for debate.

As Europe heads into the summer months, PET buyers and sellers alike are navigating a market shaped by external forces, from upstream price swings in Asia to the ever-changing dynamics of global logistics. With domestic demand still lagging and pricing direction uncertain, market participants are watching developments closely to determine whether this bullish shift marks a new phase or a temporary reaction.

In fast-moving markets like PET, timing and insight are everything. From upstream feedstock shifts to freight volatility and tariff impacts, understanding how global changes ripple through local supply chains helps buyers stay ahead of the curve.

For deeper visibility into PET, paraxylene, and freight trends, as well as forward-looking analysis and pricing data, try ICIS. Our insights help you move with the market — not behind it.