Prices of R-PET increases in USA owing to high demand
- 10-Mar-2022 6:20 PM
- Journalist: Bob Duffler
R-PET is Recycled Polyethylene Terephthalate, constituted from post-consumer flakes of PET bottles, and is a good substitute for virgin PET. R-PET is a sustainable alternative as it is a recycled product and reduces carbon emissions up to 24% during its production. The demand for R-PET mainly comes from FMCG, automotive, and textile industries.
In the USA, prices of R-PET soared by 4.17 % in the week concluding with 4th march, backed by robust demand from the downstream industries. The prices of R-PET food grade pellets were assessed to be at USD 2500/MT FOB Los Angeles. The demand for R-PET is augmenting, due to the decision of several FMCG companies to assimilate recycled content into their packaging and to meet their sustainability goals in the upcoming years. The accelerating awareness among consumers about single-use plastic wastage has made a drastic change and convinced food and beverage companies to adopt the sustainable approach. Furthermore, the ongoing discussion around over-burdening landfills and oceans with plastic wastage has further enhanced the demand for R-PET.
Apart from high demand, the supply rate for R-PET was sluggish owing to the constraint supply of virgin PET and continuous strain on the supply chain. Additionally, the restrictions due to Covid-19 had also kept the level of inventories on the lower side. Moreover, due to winters, the consumption of cold beverages was bearish, causing limited collection of post-consumer bales, hence inadequate availability of feedstock to produce R-PET. The accessibility to the feedstock of R-PET is most likely to improve in the upcoming months as the consumption of cold beverages would increase.
According to ChemAnalyst “The prices of R-PET would keep surging in the upcoming weeks due to the high demands from several industries adopting the sustainable approach and introducing R-PET into their packaging processes.”