Robust Downstream Demand Pushes R-PET Prices on Bullish Run Globally

The price trend of Recycled Polyethylene Terephthalate (R-PET) has gained upward momentum and surged in the global region amidst robust downstream demand for sustainable products. The burgeoning use of recycled plastics in FMCG markets, e-commerce, and food delivery services has seen an upward trend in domestic consumption. The market expansion of recycled plastics stimulates the fundamental concepts of the circular economy.

In India, the various initiatives taken by top market players such as Godrej and Boyce to promote and incorporate recycled plastics into their products have boosted the market sentiments of R-PET. As per the latest data, the price realizations for R-PET have increased and shown an increment of nearly USD 13 per ton in June from the prices observed in May 2022. In addition, higher interest rates by the US Federal Reserve and tight monetary policy have weakened the Indian rupee, pressuring R-PET's market value. The supply turmoil released by Russia's invasion of Ukraine has substantially affected the global prices of significant energy raw materials, further inflicting higher R-PET costs.

Furthermore, the price escalation occurred as a repercussion of giant FMCG players' virgin plastic elimination in Germany. Due to the surging demand for recycled plastic, the quotations have witnessed an increment of USD 51 per ton in the first week of July. Also, the supply-chain disruptions brought on by European sanctions have compelled the halted production amidst constrained supplies of raw materials and pushed the prices upward in Germany.

On the other hand, the domestic R-PET market in China remains stagnant amidst staggering inquiries from the downstream packaging sector. The stringent lockdown restrictions from the past two months have taken a toll on the economy and narrowed market circulations. However, the situation has gradually turned better, propelling China's logistics and circular industry towards steady advancement,

According to the pricing intelligence of ChemAnalyst, the prices discussion of R-PET may witness a bullish trend amid fluctuating energy costs and uncertainties in raw material supplies. Also, the increasing demand from the downstream packaging and bottling sectors will further inflict the price value chain of R-PET in the global region.