Volatile Demand Shows Differ R-PET Price Trends Across the Globe, Here’s Why?
Volatile Demand Shows Differ R-PET Price Trends Across the Globe, Here’s Why?

Volatile Demand Shows Differ R-PET Price Trends Across the Globe, Here’s Why?

  • 17-Oct-2023 4:42 PM
  • Journalist: Patricia Jose Perez

FOB Los Angeles: In the global Recycled-Polyethylene Terephthalate (R-PET) market, striking divergence in pricing trends and demand dynamics is evident across different regions. The United States experienced a notable price surge driven by heightened demand for R-PET from its downstream sectors. In contrast, Europe maintains a stable pricing trajectory due to weak demand from the recycling industries, influenced by an influx of cheaper virgin PET material. Meanwhile, China grapples with reduced demand from key industries, an oversupply situation, and challenges related to recycling, all of which hinder market growth.

The R-PET market has experienced a notable price increase in the US driven by heightened demand from sectors like electrical and electronics and consumer goods manufacturing. The surge in demand for finished products in the upcoming festive season in Asian regions has further boosted R-PET market sentiment. However, subdued demand from the Packaging sector has limited price gains. The market is currently characterized by low inventories and brisk trading activities, providing sellers with opportunities to enhance their profit margins. Rising energy prices and disruptions in the Panama Canal have added to a rise in the costs of products, and FOB prices have been affected positively, leading to potential order fulfillment delays and impacting market dynamics.

In Europe, the R-PET market has maintained a stable price trajectory, influenced by weak demand from recycled bottles and packaging sectors. Additionally, the influx of cheaper virgin PET material has diverted demand from R-PET, leading to increased inventories and hesitant buyer activity. Market fundamentals have deteriorated, resulting in cautious participation from stakeholders and dampened spot trading activities. Sellers have responded by implementing flexible pricing strategies to stimulate engagement amidst the prevailing market pressures.

In China, the R-PET segment has been negatively impacted by weak demand from the major recycling, Packaging, and Construction industries. Reduced recycled manufacturing activities and industrial output have contributed to a decline in R-PET demand from these sectors. Challenges related to the price support of scrap PET materials and increasing collection rates of post-consumer products have made it difficult for recyclers to regain market growth. An oversupply situation and ample inventories have kept the market bearish, posing challenges for suppliers in managing excess inventory and finding suitable outlets for their products.

According to ChemAnalyst market insights, the US R-PET market may continue to experience an upward trend in the forthcoming weeks. This is likely driven by sustained demand from key sectors and the festive season in Asian regions. However, challenges such as rising energy prices and logistical disruptions may temper the extent of price increases. In Europe, the R-PET market is expected to remain stable, while in China, overcoming the challenges related to weak demand and oversupply may take time. Flexibility in pricing strategies may be crucial in stimulating engagement across regions, contributing to the overall price trend.

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