The demand for Polyethylene Terephthalate (PET) resin has increased tremendously especially in developing countries like Brazil, Russia, India, China and South Africa. PET resin is used as packaging material in majorbeverages& food items. With its unique properties such as eco-friendly attribute, clear, safe and a strong plastic, 100% recyclable, rigid & transparency, etc., these have become one of the world´s most preferred choices of packaging materials.
According to 6Wresearch, the BRICS PET Resin production is expected to reach 10,222.0 thousand tons by 2016, at a CAGR of 12.7% from 2011-2016.In last few years, PET Resin consumption in BRICs countries is primarily driven from food & beverages products. China is the largest PET resin market amongst all BRICS countries, both in-terms of production & consumption. China produces PET resin more than its demand, which gives it an opportunity to focus on international markets as well.
However, a major hurdle that can restrict the growth of the market is the ´regular hikes incrude oil prices´. The increase in crude oil price has resulted for increase in prices of almost all petrochemical commodities like PET resin.These prices are further expected to rise in the near future as well which would in turn become a major challenge for all PET producers that can even result into pulling out of capacities or planned projects.
M&G POLIESTER SA, Jiangsu Sanfangxiang Group Co. Ltd., The Far Eastern Group, China Petroleum & Chemical Corporation and Reliance Industries are some of the key players in BRICS PET resin market.