Prices of R-PET increases in Germany owing to high demand
- 11-Mar-2022 4:28 PM
- Journalist: Harold Finch
The prices of R-PET have been increasing worldwide due to its high demand from several downstream industries. R-PET, which is formed from post-consumer bales, is generally used in FMCG, textile, and automotive industries. It is a recycled product, and hence a sustainable alternative to choose. The global rise in crude oil prices and freight charges have augmented the price value of several commodities, hence the prices of R-PET is amplifying in several countries as well.
In Germany, the prices of R-PET surged by 0.60% during the week terminating with 4th March, backed by robust demand from the end-use industries. As discussions around single-use plastics are growing rapidly among consumers, more and more companies are adopting sustainable approaches in their processing. Furthermore, enhanced concern around ocean and landfills overflowing with plastic wastage has also influenced the industries to incorporate recycled plastics into their packaging. FMCG industry is one of the major industries to put forth strong demand for R-PET, to include R-PET into their packaging. The Textile industry is another major sector highly contributing towards the firm demand for R-PET. Apart from demand, constraint supply is yet another factor, supporting the price hike of R-PET. The supply rate of R-PET is declining in the domestic market of Germany owing to the non-availability of post-consumer bottle bales because of poor strategy to collect and sort plastic waste. Conclusively, the prices of R-PET food-grade were assessed at USD 2505 per MT FD Hamburg on March 4th.
According to ChemAnalyst “The prices of R-PET will keep escalating upwards in the coming weeks as downstream demand from different industries is expected to incline further. Additionally, the limitation in post-consumer bottle bales collections is most likely to put more strain on the supply chain of R-PET. Altogether, instability between demand and supply rate is the prime factor that would contribute the most towards price hike of R-PET in the near future.”