# PET resin and Purified terephthalic acid

PTA is one of PET's two building blocks, joined with MEG and then solid-stated into bottle resin, so PET bottles are a direct, steady outlet for PTA. India now protects bottle-grade PET with a $200.66 a tonne duty on Chinese resin while buying more Chinese PTA, which tends to support domestic resin makers' margins.

Source page: https://www.materialinsights.org/links/pet-resin-and-purified-terephthalic-acid/

[PET resin](https://www.materialinsights.org/chemicals/pet/) (chemical) and [Purified terephthalic acid](https://www.materialinsights.org/chemicals/pta/) (chemical): 4 relationships.

## How they are linked

### 1. PTA plus MEG make PET

*Physical flow · Strong · PTA to PET resin*

PET is made by esterifying PTA with MEG and polymerising the result; bottle grades then go through solid-state polymerisation to raise molecular weight.

The melt-phase step runs through esterification, prepolymerisation and polycondensation reactors, and unreacted MEG is recovered. By the chemistry a tonne of PET needs about 0.86 t of PTA and 0.32 t of MEG, before losses. Bottle grades then pass through a solid-state reactor in which molecular weight rises, the step that gives bottle resin its strength.

Sources: [Intratec](https://www.intratec.us/solutions/commodity-production-costs/reports/polyethylene-terephthalate-production-cost-polyethylene-terephthalate-from-meg-and-pta-polycondensation)

### 2. Price link: product

*Cost and price · Strong · Both ways*

PET bottle resin is a large PTA outlet, so drinks demand and recycling rates affect PTA, and PTA cost sets the resin floor.

- **0.38** monthly change correlation
- **0.73** 12-month change correlation
- **1.14** fitted elasticity

Monthly moves correlate at 0.38 and yearly at 0.73. The fitted elasticity above 1 means the resin proxy moves slightly more than PTA in percentage terms, as resin margins widen and narrow with the cycle.

Sources: [Material Insights (World Bank, FRED, IMF data)](https://www.materialinsights.org/chemicals/pet/correlation/)

### 3. China capacity in both

*Geography and ownership · Strong · Both chains centred on China*

China leads new capacity in both PTA and PET, so its operating rates set world prices for both.

- **22.4 Mt/yr** PTA capacity China was set to add, 2024 to 2028
- **about 75%** China PET operating rate, second half of 2025

New Chinese PET lines include 600 kt/yr from Shandong Fuhai and 400 kt/yr from Koksan in Nantong. ResourceWise put profitability at or near zero across polyester products in late 2025.

Sources: [GlobalData](https://www.globaldata.com/?p=112614); [ResourceWise](https://www.resourcewise.com/blog/pet-and-raw-materials-2025-review-and-2026-outlook?hs_amp=true)

### 4. India duties: resin taxed, PTA open

*Policy · High in India · Duty on Chinese PET, freer PTA imports*

India places anti-dumping duty on Chinese bottle-grade PET but removed its quality order on PTA, so domestic resin makers get cheap feed and protected sales.

- **$200.66/t** anti-dumping duty on Chinese bottle-grade PET, five years from 19 June 2026
- **1.95 Mt** India PTA imports, January to November 2025

The duty, first imposed in 2021 at $15.54 to $200.66 a tonne and continued in June 2026 after a sunset review, covers resin of 0.72 dl/g or more and excludes recycled PET. India's PTA imports were up 9.1% in January to November 2025, and Chinese shipments nearly doubled after the quality control order was revoked late that year.

Sources: [Ministry of Finance, India (via World Trade Scanner)](https://worldtradescanner.com/12-ADD-19.06.2026.htm); [WKAI Global](https://wkaiglobal.com/blogs/india-confirms-continuation-of-anti-dumping-duties-on-chinese-pet-resin-after-first-sunset-review); [S&P Global Commodity Insights](https://www.spglobal.com/energy/en/news-research/latest-news/chemicals/012226-asian-pta-producers-under-pressure-as-india-laps-up-chinese-supply)

## For investors

### Key learnings

1. PET resin and PTA share one polyester cycle, with a yearly price correlation of 0.73.
2. Chinese overcapacity kept PET plants at about 75% and polyester margins near zero in late 2025.
3. In India, cheaper imported PTA plus a $200.66/t duty on Chinese PET tends to widen domestic resin makers' conversion margin.

### What to track

- **PET bottle resin price minus PTA and MEG cost**: Conversion margin for resin makers (Weekly · CCF, Platts)
- **India PET resin imports by origin**: Effect of the 2026 duty (Monthly · DGCI&S)
- **China PET operating rate**: Oversupply signal (Weekly · CCF)

## For policymakers

### Key learnings

1. A duty on PET resin but not on PTA protects the resin step while keeping feed cheap; bottlers and brand owners pay the higher resin price.
2. The duty applies only to bottle grade resin of 0.72 dl/g or more and leaves recycled PET out, so recycled resin competes free of it.
3. India imported about 2 Mt of PTA in 2025; GAIL's planned 1.25 Mt/yr unit is the main domestic addition in view.

### What to track

- **DGTR reviews on PET and PTA**: Changes in trade remedies (Event-driven · DGTR, CBIC)
- **India PTA imports**: Feedstock reliance (Monthly · DGCI&S)

## India

India imported 1.95 Mt of PTA in January to November 2025 and applies a $200.66 a tonne anti-dumping duty on Chinese bottle-grade PET for five years from June 2026, with recycled PET excluded.

## Sources

1. [Polyethylene terephthalate production from MEG and PTA (polycondensation): cost report](https://www.intratec.us/solutions/commodity-production-costs/reports/polyethylene-terephthalate-production-cost-polyethylene-terephthalate-from-meg-and-pta-polycondensation), Intratec
2. [Notification No. 12/2026-Customs (ADD): PET resin from China](https://worldtradescanner.com/12-ADD-19.06.2026.htm), Ministry of Finance, India (via World Trade Scanner) (2026)
3. [India confirms continuation of anti-dumping duties on Chinese PET resin after first sunset review](https://wkaiglobal.com/blogs/india-confirms-continuation-of-anti-dumping-duties-on-chinese-pet-resin-after-first-sunset-review), WKAI Global (2026)
4. [Asian PTA producers under pressure as India laps up Chinese supply](https://www.spglobal.com/energy/en/news-research/latest-news/chemicals/012226-asian-pta-producers-under-pressure-as-india-laps-up-chinese-supply), S&P Global Commodity Insights (2026)
5. [Price correlation, Material Insights](https://www.materialinsights.org/chemicals/pet/correlation/), Material Insights (World Bank, FRED, IMF data)
6. [China to spearhead global PTA capacity additions through 2028](https://www.globaldata.com/?p=112614), GlobalData (2024)
7. [PET and raw materials: 2025 review and 2026 outlook](https://www.resourcewise.com/blog/pet-and-raw-materials-2025-review-and-2026-outlook?hs_amp=true), ResourceWise (2025)