The global PET market experienced a strong rise during Q2 2026. Prices moved higher across important markets during April and May as supply concerns, expensive raw materials, and shipping problems created pressure on buyers and producers. The main reason behind the sudden change was the escalation of the US-Iran conflict and the resulting disruption around the Strait of Hormuz.

The PET price trend during the quarter was closely connected with the availability of important feedstocks such as paraxylene, purified terephthalic acid (PTA), and monoethylene glycol (MEG). These materials are essential for PET production, so any major change in their availability or cost can quickly affect the wider PET market. When shipments from the Middle East became difficult, buyers faced higher replacement costs and producers had to deal with increased production expenses.

Crude oil was another major factor. During April and May, crude oil values moved to very high levels as the conflict increased concerns about global energy supply. Higher crude oil costs affected the production economics of several petrochemical feedstocks. As a result, PET producers in different regions had to manage higher raw material and operating costs.

Shipping problems made the situation more difficult. The Strait of Hormuz is an important route for energy and petrochemical trade, so its closure created uncertainty for companies that depended on cargoes moving through the region. Some shipments had to take longer routes, which increased freight expenses and extended delivery times. For buyers, this meant that even when material was available, getting it delivered could cost considerably more.

Demand also provided support to the market. Beverage packaging remained an important source of consumption during the quarter. Bottled water, soft drinks, edible products, and other packaged goods continued to require PET bottles and containers. Packaging manufacturers therefore continued purchasing material even when costs were rising.

The combination of firm demand and limited feedstock availability created strong upward pressure during the first two months of Q2. Many buyers were concerned that prices could move even higher, so some companies increased purchases earlier than usual. This behaviour provided additional support to the market.

However, conditions changed during June. The mid-June US-Iran ceasefire and the agreement to reopen the Strait of Hormuz helped reduce some of the uncertainty surrounding international trade. Crude oil values began to soften, shipping conditions gradually improved, and feedstock availability became better.

As the supply situation improved, buyers became more cautious. Instead of purchasing large quantities, many companies shifted toward buying only what was required for near-term production. This reduced some of the buying pressure that had been visible in April and May and allowed prices to correct across several markets.

India PET Market

India experienced a strong increase during Q2 2026, with the market rising by around 25%. The increase was mainly linked to higher feedstock costs, limited availability of imported paraxylene, PTA, and MEG, and healthy domestic demand.

The closure of the Strait of Hormuz affected the movement of Middle Eastern feedstocks into Asia. Indian buyers therefore faced higher replacement costs and greater uncertainty when planning imports. The increase in crude oil values during April and May added further pressure to the production chain.

Domestic beverage demand also helped keep the Indian market firm. Warmer weather increased the need for bottled beverages, which supported demand for PET resin used in bottle production. Packaging requirements remained steady as well, giving producers and distributors a relatively stable demand base.

The market remained strong even though some buyers were uncomfortable with the higher cost. Companies still needed material for regular production, so they continued purchasing to meet their operational requirements.

The situation started to improve after the mid-June ceasefire. Feedstock availability gradually became better and crude oil costs started easing. Freight conditions also improved as shipping routes became more predictable.

In June, the Indian market recorded a relatively small correction of around 2%. The decline was limited because domestic beverage and packaging demand continued to provide support. This showed that although supply conditions were improving, consumption remained strong enough to prevent a major fall.

China PET Market

China recorded one of the strongest movements during Q2. Bottle Grade Resin increased by around 28%, while High IV Super Bright textile grade increased by around 25%.

The main reason for the increase was the disruption in Middle Eastern feedstock supply. Reduced availability of paraxylene, PTA, and MEG increased concern across the Asian market. Chinese producers and exporters became more important to overseas buyers because companies in several regions needed alternative sources of material.

Higher crude oil values also increased production costs. Producers had to manage higher feedstock expenses while international buyers were dealing with more expensive freight and longer delivery times.

Domestic demand in China improved moderately during the quarter. Although the improvement was not exceptionally strong, it provided some additional support to the market. Export demand was more important because international buyers were looking for material while supplies from other origins became less certain.

Chinese exports therefore played a major role in balancing the regional market. Buyers in other Asian markets relied more heavily on Chinese cargoes, helping maintain stronger market levels during April and May.

The market started changing in June after the ceasefire and the agreement to reopen the Strait of Hormuz. Feedstock costs began easing and shipping conditions improved. As export markets started returning to more normal conditions, the earlier supply concerns became less intense.

Bottle Grade Resin values declined by around 9% in June, while High IV Super Bright textile grade values fell by around 8%. The correction reflected lower feedstock costs, improved supply conditions, and more cautious buying from overseas customers.

United States PET Market

The United States recorded a sharp increase of around 33% during Q2 2026. The main reason was higher import costs, particularly for PET cargoes coming from South Korea.

The conflict in the Middle East and the closure of the Strait of Hormuz created pressure across the global petrochemical chain. Higher crude oil values increased feedstock costs, while supply concerns pushed Korean export offers higher during April and May.

Freight was another important part of the increase. Shipping companies had to deal with changing routes and longer transit times, which raised the cost of bringing PET cargoes into Houston. Importers therefore had to pay more not only for the material itself but also for transportation.

Domestic demand remained relatively healthy. Beverage packaging continued to support PET consumption, helping maintain strong buying interest even when imported material became more expensive.

For US buyers, the combination of higher Korean offers, expensive freight, and strong domestic consumption created a difficult purchasing environment. Importers had to consider whether to secure cargo immediately or wait for prices to become more manageable.

The situation began improving in June. Following the ceasefire, Korean export offers started easing and freight costs gradually came down. Improved logistics reduced some of the pressure on landed import costs.

The US market corrected by around 7% during June. The decline reflected lower import costs and improving supply conditions rather than a sudden collapse in demand.

What Drove the PET Market in Q2 2026?

The second quarter showed that the PET market can be affected by developments far beyond the packaging industry itself. Feedstock costs, crude oil, international shipping, geopolitical events, and consumer demand all played a role.

The biggest pressure came from the supply side. When Middle Eastern shipments became difficult, the availability of paraxylene, PTA, and MEG became more uncertain. Producers had to deal with higher costs, while buyers faced increased replacement values.

Crude oil also had a strong influence. Since PET production is connected to the broader petrochemical chain, a sharp increase in energy and feedstock costs can quickly move through the supply chain. This was clearly visible during April and May.

Freight costs added another layer of pressure. When shipping routes were disrupted, transportation became slower and more expensive. Import-dependent markets were particularly exposed because buyers had to include higher logistics expenses in their purchasing calculations.

Demand was the other side of the market. Beverage and packaging applications continued to consume PET at a steady rate. This helped prevent the market from weakening even when prices reached high levels.

June Correction and Market Normalisation

June brought a noticeable change in sentiment. The ceasefire between the United States and Iran and the reopening agreement for the Strait of Hormuz reduced concerns about further supply disruptions.

As crude oil values softened, the cost of PET feedstocks also started coming down. Freight conditions improved as shipping became more predictable. Producers and exporters consequently had less reason to maintain the very high offers seen earlier in the quarter.

Buyers also changed their approach. When prices were rising quickly, many buyers preferred to secure material early. Once the market began correcting, they became more comfortable waiting. Need-based purchasing replaced inventory building in many cases.

This change in buying behaviour is important because it can accelerate a market correction. When buyers stop purchasing extra material, suppliers may have to become more competitive to maintain sales volumes.

The June movements in India, China, and the United States showed this clearly. China experienced the strongest correction among the three, while India saw only a small decline because domestic demand remained supportive. The US market also corrected as South Korean import offers and freight costs eased.

Outlook for the PET Market

The Q2 2026 experience highlights the importance of watching the complete PET supply chain rather than focusing only on finished resin. Crude oil, paraxylene, PTA, MEG, freight, shipping routes, and downstream consumption can all influence market direction.

If energy and feedstock markets remain stable, PET producers and buyers may have a more predictable trading environment. Improved shipping conditions should also help reduce some of the additional costs seen earlier in the quarter.

However, demand will remain important. Beverage packaging and other consumer applications can continue providing a steady base for PET consumption. Seasonal demand may also influence purchasing patterns in markets where bottled beverages are widely used.

For producers, maintaining a balance between operating rates, inventories, and market demand will be important. For buyers, keeping track of feedstock costs and freight conditions can help in making better purchasing decisions.

Overall, Q2 2026 was a period of sharp increases followed by a gradual correction. April and May were dominated by supply concerns and rising costs, while June brought better availability, lower logistics pressure, and more cautious purchasing. The market's next direction will depend largely on energy prices, feedstock availability, shipping conditions, and the strength of demand from the beverage and packaging industries.

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