For the Quarter Ending March 2024
North America
In Q1 2024, the North American R-PET market, particularly in the USA, experienced modest growth amidst variable market conditions. The period began with a steady state, prices holding at USD 1070/MT, amidst cautious investment due to uncertainty in downstream demand and increased post-consumer product collection.
Prices gradually ascended to USD 1130/MT by quarter's end, reflecting a market responding to a complex interplay of factors. Early in the quarter, a spike in spot resin trading due to extreme weather conditions and logistical disruptions pointed to price increases. As the quarter progressed, the demand for R-PET showcased a steady climb, attributed to a heightened emphasis on sustainability and legislative pressures, despite a low-demand backdrop in downstream sectors like textiles and packaging.
The market remained stable with well-managed inventories and efficient supply chains. Occasional price increases were driven by heightened demand in import countries and constrained shipping capacity, indicating the market's sensitivity to external logistics and demand fluctuations. Despite global economic pressures, North America's R-PET market concluded the first quarter with stable demand and moderate supply levels, underpinned by a steady price increment.
APAC
In Q1 2024, the APAC R-PET market faced challenges with fluctuations in demand influencing pricing dynamics. Initially stable, R-PET prices began at USD 865/MT on FOB – Shenzhen basis, but experienced a gradual decline, bottoming out at USD 800/MT by March end, reflecting a market downturn amid uncertain demand, particularly from packaging and construction sectors. Despite early stability, driven by demands in automobile and construction, prices dipped due to an oversupply, weak consumption, and cautious purchasing amidst buyers in downstream industries. Seasonal factors, including the Lunar New Year, led to pre-emptive stockpiling, causing a temporary slowdown in spot transactions. However, seamless supply chain operations and sufficient inventories maintained moderate supply levels. Toward the quarter's end, a slight rebound occurred, influenced by lower plastic prices and a pickup in operational efficiency. Ultimately, the quarter concluded with a 3% price reduction, signalling a cautious market with conservative investment approaches by key players due to the increased collection of post-consumer products and average demand from traditional R-PET consuming sectors.
MEA
In Q1 2024, the R-PET market in the MEA region, particularly in Saudi Arabia, showcased a resilient but gradually strengthening performance. The quarter commenced with price stability at USD 820/MT amid demand concerns and surplus supply, which curtailed market dynamics and led to a conservative investment stance. As January progressed, a modest rise was observed, attributed to sporadic demand spikes, and limited material availability. The market-maintained stability through February, defying regional tensions and global market trends, because of balanced inventory levels and steady domestic production. Towards the quarter's end, a more pronounced upward trend emerged, with prices peaking at USD 860/MT, driven by increases in upstream PET prices, spot purchase activities, and restocking demand, particularly from the automobile and construction industries. Despite fluctuations in global oil prices and the presence of virgin PET, R-PET in MEA demonstrated an ability to navigate through market adversities with adaptive supply chain strategies, ultimately achieving a moderate price increase by quarter's end.
Europe
In Q1 2024, the R-PET market in Europe, particularly in Germany, witnessed a progressive climb in prices from USD 950/MT to USD 1080/MT, highlighting a market adapting to varying demand and supply conditions. The quarter kicked off with market stability despite uncertainty in downstream demand and a higher collection rate of post-consumer products. A subsequent steady rise in prices was observed, catalysed by a boost in demand from packaging industries and tightening inventory levels. Upstream crude oil prices lent cost support, allowing traders to enhance margins amidst competitive markets. Throughout the quarter, the European R-PET market grappled with regulatory challenges affecting recycled plastics' use in food packaging, impacting market growth. However, demand surges for spot volumes and an uptick in virgin PET prices offered recyclers an avenue to elevate R-PET prices without facing stiff competition, pushing prices upward. The final weeks saw further price hikes influenced by strong demand, supply constraints, and increased imports of recycled plastics into the EU. Despite pressures from the virgin material sector and global economic headwinds, the R-PET market showcased robust growth, underpinned by consistent demand from key manufacturing sectors.
For the Quarter Ending December 2023
North America
The North American R-PET market witnessed stable pricing throughout the current quarter of 2023. The surge in demand for products made from recycled materials, including clothing, packaging, and household items, contributed to moderate demand for R-PET. The availability of base material scrap PET material resulted in low-cost production of the product, leading to high supply levels.
However, the reduction in operation rates from major recyclers and deteriorating demand from overseas markets affected the market sentiments. The US R-PET market experienced a stable supply and moderate demand, leading to consistent pricing. The presence of ample inventories within beverage and packaging industries led to subdued trading activities, fostering a sense of pricing stability.
The surge in demand from the automotive and construction sectors provided support to the local market, keeping it steady. The price of R-PET Food Grade Pellets FOB Los Angeles witnessed a significant increase of 0.3% over the past month from November to December, reaching USD 1488/MT as the quarter came to an end. There were no reports of any plant shutdowns during the quarter. The trend, seasonality, and correlation of R-PET pricing for the US remained consistent throughout the quarter, with no significant percentage changes.
APAC
In Q4 2023, the APAC R-PET market faced a challenging quarter due to reduced demand from downstream industries involved in the production of recycled beverage bottles and packaging materials. The market witnessed a decline in its value by 4.8%, with the price of R-PET Flakes Spot Ex-Shenzhen descending to USD 849/MT in China, which has the maximum impact on the market.
The bearish pricing trend was due to the easy availability of base material, scrap PET material, leading to low production costs. The market supply remained high, with no reported supply issues, while demand remained moderate to low due to weakened demand from the packaging and beverage industries. The reduction in trading activities has also plunged the price trend.
The R-PET market has been impacted by the decreasing price of virgin PET material and the rising rate of post-consumer product collection, presenting challenges for recyclers seeking to revitalize market growth. The quarter witnessed a 11% decline in prices from the previous quarter, while the percentage change in the last year same quarter price was declined by14%. No plant shutdowns were reported during this quarter.
Europe
The European R-PET market in Q4 of 2023 faced a challenging quarter. The market witnessed a stable supply trend with high supply levels due to consistent influxes of material into the market. However, the demand remained moderate to low, and the market faced the impact of favourable prices for virgin PET material. The reduction in the operation rate from major recyclers and the increased collection rates for post-consumer products led to enhanced availability of base materials, creating a supply-demand imbalance.
Additionally, the market grappled with negative demand forecasts from downstream industries involved in the production of recycled beverage bottles and packaging materials, particularly when compared to the demand for virgin PET products. Germany faced a significant decline in R-PET prices, with R-PET Flakes FD Hamburg dropping to USD 974/MT by the end of the quarter.
The country's market witnessed a bearish trend with high supply and low demand, and a surge in demand for products made from recycled materials might influence market sentiments. The percentage change from the current to the previous quarter was 13%. The quarter ending price of R-PET Flakes FD Hamburg in Germany was USD 974/MT.
MEA
The fourth quarter of 2023 saw a bearish market for Recycled-polyethylene terephthalate (R-PET) in the MEA region. The supply of R-PET remained high, with easy availability of base material scrap PET material resulting in low cost of product production. Demand for R-PET from the Bottles and Textile industries remained subdued, while healthy demand from the Automobile and Construction sectors provided support to the local market, keeping it steady.
The market contended with the impact of declining prices for virgin PET material and an escalating rate of post-consumer product collection, adding complexities for recyclers striving to stimulate market rejuvenation. Saudi Arabia witnessed the maximum change in pricing trends, with a moderate supply and moderate demand for R-PET. The trend for R-PET prices in Saudi Arabia showed -2% change from the current to the previous quarter.
Trading activities remain muted this week with no firmer offers and bids which can support the price trend. Trading fundamentals within the Middle Eastern market also affected as the demand was not up to the mark and suppliers remain sceptical to increase the prices further. In Dec 2023, the price of R-PET Flakes Bottle Grade Spot Ex-Jeddah in Saudi Arabia was USD 837/MT.
For the Quarter Ending September 2023
North America
During the third Quarter of 2023, US R-PET prices experienced an overall decline of approximately 9%, influenced by uncertain economic conditions and a rising inflation rate. In August, the R-PET market sustained a declining price trend, marked by an uncertain global demand outlook. The reduction in operational activities by major recyclers led to cautious material investments and stockpiling among enterprises. Additionally, the market felt the impact of weak virgin PET costs, further affecting its dynamics. These combined factors presented ongoing challenges in the R-PET market, requiring industry players to adapt to a complex and evolving landscape. As the second month of Q3 unfolded, R-PET prices in the US market continued to decrease due to the absence of significant changes in the factors affecting final prices. Demand from downstream industries remained subdued. However, as the last month of Q3 approached, R-PET prices exhibited an increment. Elevated demand from downstream industries, particularly the beverage and packaging sectors, drove increased trade volumes for this commodity in the American region. Robust trading activity was observed as market participants anticipated rising costs in the coming months, contributing to bullish market fundamentals.
Europe
The European market for Recycled Polyethylene Terephthalate (R-PET) witnessed a notable declining trend, with a decrement of approximately 24% in the third Quarter of 2023. This decline was influenced by several factors, including reduced demand, supply challenges, and economic conditions affecting the R-PET market in Europe. At the beginning of Q3, the R-PET market experienced a continuous decline in prices due to various factors. Weak demand from the recycled bottles and packaging sectors resulted in increased product inventories and cautious buyer behavior. Additionally, the influx of cheaper virgin PET resin into the market diverted demand away from R-PET. These factors led to deteriorating market fundamentals, prompting stakeholders to participate cautiously and impacting spot trading activities. Sellers responded to these challenges by adopting flexible pricing strategies to stimulate engagement in the face of market pressures. In August, the prices of R-PET in the European market continued to decrease due to the absence of significant changes in the factors affecting final prices. The demand for R-PET from downstream industries remained subdued, and the manufacturing Purchasing Managers' Index (PMI) slightly decreased, indicating a very fragile manufacturing sector with weakening demand. This market shift was largely influenced by the presence of ample inventories in these areas, leading to subdued trading activities throughout the month.
APAC
In the Asia-Pacific region, the market for Recycled Polyethylene Terephthalate (R-PET) experienced a period of slow growth, with a decline of approximately 13% during the third Quarter of 2023. In July, demand for R-PET from the packaging and bottles industries remained moderate, both domestically and globally. However, the consistent influx of material resulted in an overflow of supplies at domestic ports. Additionally, the ample availability of the material narrowed the gap between supply and demand, allowing purchasers to offer lower bids. This, in turn, led to reduced spot trading activities and compelled sellers to maintain softer pricing. Moving into August, the Chinese R-PET market sustained a continued downward trend. Several factors contributed to this situation. The market was impacted by the decreasing price of virgin PET material, as well as an increase in the collection rate of post-consumer products. However, weak downstream manufacturing processes resulted in subdued demand for R-PET, presenting challenges for recyclers. As the last month of Q3 approached, the market's outlook remained uncertain due to variable demand from key downstream sectors, especially the packaging and bottles industry. These sectors, significant consumers of R-PET, exhibited fluctuating demand patterns, which created a sense of cautious optimism in the market.
MEA
In Saudi Arabia, the market for Recycled Polyethylene Terephthalate (R-PET) exhibited mixed trends during the third Quarter of 2023. Market sentiments varied due to several factors affecting supply and demand dynamics. At the beginning of the Quarter, the R-PET market experienced a declining price trend. Sectors like textiles and consumer goods showed slightly reduced demand, prompting major manufacturers to adjust their production rates to prevent excessive stock buildup. Cautious purchasing behavior contributed to maintaining stable pricing. However, as the second month of Q3 unfolded, the R-PET market saw a marginal price increase after a period of stability in recent weeks. Despite this, sustained low demand from the packaging and recycled bottle sectors kept buyers engaged due to limited product inventories. As the last month of Q3 approached, R-PET prices remained steady over the month. Demand from the beverage and textile industries remained subdued, while strong demand from the automobile and construction sectors supported the local market. Nevertheless, the healthy availability of the material narrowed the gap between supply and demand, allowing purchasers to offer lower bids.
For the Quarter Ending June 2023
North America
In the second quarter of 2023, the Recycled-polyethylene terephthalate R-PET prices showed an overall declining price trend amid uncertain economic conditions coupled with the rising inflation rate. In April, the price of R-PET showed a decrease in price due to low demand from the major associated downstream packaging and plastic industries amid surplus availability of material. Furthermore, the ample practicality of waste PET material at a lower price from the overseas market provokes the local mills to reduce their offer prices. In May, the debt crisis that happened due to the simultaneous downfall of major banks in the USA caused a drastic effect on the US marketing condition and provoked the buyers to hold back from placing large orders with it. The R-PET market experienced a further decline trend. The inventory level remained high in the month of June, as the market remained under pressure from the weak downstream demand from the bottles and packaging segment. Furthermore, weak demand from the international market has created an overall pessimistic market. Thus, the price of the R-PET Pellets Clear Flakes FOB Los Angeles showcased a decrement of approximately (-10.3%) in the second quarter of 2023 and settled at USD 1100/MT in the month of June.
APAC
In the Asia-Pacific region, the market for Recycled Polyethylene Terephthalate (R-PET) displayed mixed sentiments during the second quarter of 2023. During the month of April and May, the market showcased an upward trend, and this turnaround was prompted by a rise in the consumption rate of R-PET material from the major downstream bottles and food packaging industries. Additionally, the expanded demand for R-PET from food and beverage companies for packaging purposes contributed to cost growth during this period. However, in the month of June, the cost of R-PET decreased as companies had already procured a substantial amount of the product in the previous month. Moreover, adding to the conspiracy, the vibrant Dragon Boat Festival momentarily dampened export activities, leading to an abundance of material within the region in the month of June. Furthermore, diminished international market fundamentals of manipulated market participants for further investment in the product. This result in muted spot trading activities and push the sellers to keep the price softer. Meanwhile, in China, the R-PET market witnessed a mixed market trend in the second quarter of 2023. R-PET Flakes FOB -Shenzhen showcased an increment of approximately (+1.8%) in the second quarter of 2023 and settled at USD 1150/MT in the month of June.
Europe
The European market for Recycled Polyethylene Terephthalate (R-PET) has experienced a noticeable declining trend in the second quarter of 2023. Several factors contributed to the overall market slump. A combination of reduced demand, supply challenges, and economic factors has impacted the R-PET market across Europe. One of the primary contributors to the decline trend is the decrease in demand for R-PET products. Changing consumer preference coupled with an increased emphasis on sustainability. Supply-side challenges have also played a significant role in the declining trend for the European R-PET market. Recyclers across the region have faced operational hurdles, including limited availability of plastic waste and logistical disruption. Additionally, strict regulations on imports and exports of plastic waste have affected the raw material of R-PET production. Moreover, Economic factors have further impacted the European R-PET market. The economic slowdown and changing geopolitical landscape have created an environment of cautious spending. Businesses and consumers remained hesitant to commit long-term orders in R-PET products, leading to decreasing demand. Thus, the price of the R-PET Flakes FD Hamburg showcased a decrement of approximately (8.5%) in the second quarter of 2023 and settled at USD 1602/MT in the month of June.
MEA
In Saudi Arabia, the market for Recycled Polyethylene Terephthalate (R-PET) experienced a mixed trend during the second quarter of 2023. The market sentiments fluctuated based on various factors impacting demand and supply dynamics. At the beginning of the quarter, the R-PET market witnessed a surge in price trends. This growth can be attributed to the surge in demand for R-PET from the packaging and Textile sector. Additionally, favorable market conditions and stable economic growth played a role in the upward trend of the R-PET market in April. Moving to May, the market in Saudi Arabia remained stable during this period. This was due to consistent demand for R-PET products across the region. However, in June, the R-PET market experienced a declining trend. The unbroken declining downstream demand from recycled bottles and Packaging businesses kept the buyers on edge with high product records. Furthermore, diminished international market fundamentals of manipulated market participants for further investment in the product. Anyway, in the second quarter of 2023, there was not a major decrement in the price of R-PET in the middle east region with it, R-PET Flakes Bottle Grade Spot Ex-Jeddah showcased a minute decrement of (0.4%) during the entire second quarter.
For the Quarter Ending March 2023
North America
Recycled Polyethylene Terephthalate (R-PET) prices remained stable in the quarter ending March 2023, with a cost of USD 1766/MT for food-grade pellets on a FOB – Los Angeles basis, according to ChemAnalyst data. The stable prices were attributed to consistent downstream demand and moderate supply, with no significant changes observed in the market dynamics. Despite standard demand from downstream FMCG companies, increased production outputs from upstream companies led to more volumes of R-PET being available, prompting suppliers to lower their quotes to boost sales. Overall, the market situation is considered bearish, with moderate supply and demand for R-PET in the first quarter of 2023.
APAC
The price of Recycled Polyethylene Terephthalate has increased due to the growing demand from downstream companies in the first quarter of 2023. As a result of the limited availability of the commodity, the supplies were being carried out in limited volumes. Companies producing food and beverage products and plastic goods were interested in acquiring the product for their production needs. Downstream industries preferred recycled PET bottles to virgin PET due to their sustainable properties and the rising demand in the summer. The growing consumer awareness of sustainability has further enhanced the demand for recycled PET from the bottles and beverages industries. The market situation is bullish, with high demand and moderate to high supply in the quarter ending March 2023.
Europe
The price of Recycled Polyethylene Terephthalate (R-PET) remained stable in the quarter ending March 2023. The demand-to-supply ratio for R-PET remained stable, with moderate demand from downstream FMCG sectors and no significant supply disruptions. As a result, the upstream companies maintained normal production rates. The market situation was balanced, with moderate to high supply and moderate to high demand from downstream packaging industries. The plant shutdowns were modest, and there were no significant closures reported. Traders reported bulk inventories amidst stability in the purchasing activity. Thus, the price of R-PET for Food Grade was quoted at USD 2200/MT FD Hamburg (Germany) in March 2023.
For the Quarter Ending December 2022
North America
This quarter, R-PET prices in North American markets consistently decreased. The moderate demand for this product from businesses downstream contributed to the price drop in the United States. Because they were able to negotiate better prices for virgin PET than for R-PET, some businesses preferred it over this product. As a result, businesses that recycle PET did not increase their production rates because there were sufficient stocks of the product to meet demand. The subpar performance of the upstream crude oil market was another factor that contributed to the cost reduction.
APAC
This quarter, the market sentiment for recycled polyethylene terephthalate was the same across the entire Asia-Pacific region. Due to the implementation of Covid - 19 curbs, which hampered production activities, China's R-PET market was moderate. As a result, beverages and other downstream businesses gave typical procurement orders for the purposes of production. The commodity's price was significantly impacted by the subpar upstream crude oil performance. The R-PET market in India was not very impressive because FMCG, plastics, and packaging companies had a lesser interest in this product. As a result, more of it remained in inventories without being sold, forcing suppliers to lower their quotes to increase sales.
Europe
In this quarter, the markets for recycled polyethylene terephthalate in Europe and Asia were identical. The beverage, plastics, and food industries were more concerned about rising energy costs as a result of the ongoing conflict between Russia and Ukraine, which did cause them to reduce their production rates significantly. As a result, the market was heavily based on the demand for this product. The price of this product was also affected by the events that were going on in the upstream crude oil market. As a result, the ample stocks in stores and inventories were meeting the requirements of downstream businesses.
For the Quarter Ending September 2022
North America
The cost of R-PET remained idle for more than a month in the North American region this quarter. The consistency in cost was because of the stability in the demand-supply ratio of this product, and companies involved in recycling PET did not enhance their production rates as enough volumes of this product were available in inventories. However, in the final month of this quarter, the cost of this product stepped down as companies preferred virgin PET over this product, and plastics recycling companies were closed owing to summer vacations. Hence, in the U.S., this product concluded its market this quarter at USD 2,370 per MT (for food-grade pellets) on FOB – Los Angeles basis.
APAC
Recycled – Polyethylene Terephthalate was experiencing mixed market sentiments in the Asia – Pacific region this quarter. In India, the R-PET market was dull in the month of July; however, it bounced back in August owing to the concerns that arose over the ban on single-use plastics by the Indian government. The other factor which contributed to cost growth was the expanded demand for this product from food and beverage companies for packaging purposes. Yet, in September, the cost fell as companies had procured more of this product in the previous month. When it comes to China, the R-PET market witnessed growth till the fourth week of August, as beverage companies came up with more orders to fulfill the summer demand for their end–products. However, the market went down in September because of the modest interest for this product shown by downstream companies, and so, R-PET closed its market in China this quarter at USD 1,059 per MT on (spot) ex – Shenzhen basis.
Europe
The European market of Recycled Polyethylene Terephthalate saw ups and downs this quarter. This product started trading in this quarter with growth in cost; however, it stepped down and remained stable for a while in August and came down further in September. Again, the market grew and stayed idle in the last couple of weeks this quarter. The market was hugely based on the demand that this product was receiving from beverages, plastics, and food companies, as they were concerned more about the soaring energy costs and uncertainties in power supply, which did and could hamper their production activities to a great extent. The events that were taking place in the upstream crude oil market also had an impact on the cost of this product. As of 30th September, R-PET cost stood at USD 2,002 per MT on FD – Hamburg basis.
For the Quarter Ending June 2022
North America
The price of R-PET witnessed an uptrend in the North American Region during the second quarter of 2022. The active inquiries from end-user industries such as food and beverage, automotive, and other vital sectors to incorporate recycled plastics into their products have supported the augmented price trend of R-PET in the domestic market. Constraint feedstock supply and high energy costs caused the recycled plastics market to remain stronger. In the second half of Q2, the market competitiveness due to reduced virgin PET prices and a sharp drop in plastic exports has pressured the price discussions of R-PET. Furthermore, the ban imposed by China and Turkey on plastic imports has also dwindled the plastic scrap supplies in the USA. However, the prices remained firm for RPET Pellets Clear Flakes and RPET Pellets Food Grade Pellets in the USA and were assessed at USD 2160/MT and USD 2645/MT FOB Los Angeles during June.
APAC
During the second quarter of 2022, the price of R-PET demonstrated mixed sentiments in the Asia-Pacific Region. The resurgence of COVID cases in China has taken a toll on the economy and hampered trade activities. As a result, a continual plunge was observed amidst stockpiling of products and deteriorating buyer sentiments. Industrial production faced pressure from insufficient market demand and continued to battle shipping delays as ports in China remained clogged up. In India, R-PET prices were observed to be on a bullish run throughout Q2 amid robust demand from the downstream packaging sector. The worsening ties between Russia and Ukraine and the stringent COVID restrictions on China have severely disturbed the market equilibrium. The constrained supply of post-consumer bales coupled with elevated crude oil prices and freight charges has supported the uplifted price discussions of R-PET in the domestic Indian market. In June, the recycled polyethylene terephthalate (R-PET) prices in China observed for R-PET Flakes were USD 1050/MT on a FOB basis.
Europe
The constrained supply of post-consumer bales and elevated crude oil prices have imparted substantial cost pressure on R-PET prices in the European region. The supply turmoil unleashed by Russia's invasion of Ukraine has prompted upward pressure on the key energy raw materials, driving manufacturing costs higher. Also, the robust demand for recycled plastics from the automotive industry and an increase in e-commerce have all contributed to a positive market outlook. The market participants have emphasized using recycled plastics for sustainable development, inflicting R-PET's price discussions to soar further in the regional market. The strong buying sentiments provoked the high price levels of R-PET in Germany, which settled for R-PET Food Grade USD 2568/MT FD Hamburg.
For the Quarter Ending March 2022
North America
High demand in the American market was observed during the first quarter of 2022 because of growing consumer concerns regarding plastic pollution. This propelled big companies to adopt a sustainable approach and opt for recycled plastics, further fuelling the prices of R-pet in the North American region. The prices of R-PET increased 14% from Dec 2021 to March 2022 and settled at USD 2550/tonne by the end of March’22. From the beginning of the year, labor shortages in the domestic market affected the production rate and supply chain. The prolonged port congestion also impacted the supply. Overall, the prices rose in the North American region.
Asia Pacific
The prices of R-PET increased in the Asian region during the first half of quarter 1 of 2022 which later got stabilized in the second half. In the Indian market, sudden demand from the end-user beverage industries impacted the prices especially when the Government restricted the use of “Single-use plastics” in the domestic market. Because of the capacity restrictions from manufacturers like Reliance, supply shortages created the demand-supply gap, and the prices rose around 8% in January since Dec 2021. Although feed PET prices decreased in the domestic market, R-PET prices increased because of unexpected demand. In India, the accessed prices were USD 1548.33/tonne by March 2022. The hovered prices were USD 1275 /tonne, with a rise of 23% in China by the end of March 2022.
Europe
The prices of R-PET increased in the European region and rose about 15% from Dec 2021 to March 2022. High energy costs impacted the production cost, which significantly rose the prices in February. High freight rates and shipping costs affected the supply of feed PTA (Purified Terephthalic Acid) from exporting countries. Due to a shortage of raw materials in the upstream PET industry and increased production costs, the prices rose by 10%. The surge in price slowed down by the end of the quarter with an increase of 4% in March. The R-PET prices remained strong in Germany and were assessed at USD 2600 /tonne by the end of the first quarter of 2022.
For the Quarter Ending December 2021
North America
The R-PET market in the USA witnessed an unabated rise throughout Q4-2021 consolidating on rising raw material costs as well as strong demand from the downstream industries. The virgin PET raw materials that remained bullish on the back of feedstock supply challenges, caused the recycled market to term stronger in comparison to Q3. The offtakes for R-PET clear flakes in the downstream industrial yarn sector inched upwards at a gradual pace. A major impetus to the R-PET food grade pellets demand was provided by the global brand owners like CocaCola and PepsiCo that raised their R-PET consumption to accelerate their efforts towards achieving the sustainability goals of introducing recycled packaging in their select brands. As the production dwindled with capacity shortfalls, the manufacturers quoted firm contracts on R-PET inventories, causing the prices in the USA to reach USD 2246/MT for food grade pellets and USD 1735/MT for Clear Flakes on FOB basis.
Asia
Asian R-PET market exhibited mixed sentiments as the price trends depended on many local factors. In China, the prices for R-PET increased during October backed by production challenges arising due to the inflationary pressure from high-trending virgin PET as well as curtailed productions for saving energy in compliance with China’s “Dual Control Policy”. However, with cooling in the virgin PET market and easing import of waste plastics due to a small relief in port congestion, the R-PET prices in China slumped during the last month of the quarter. The fluctuating demand fundamentals from stable to weak trends caused the R-PET prices in China to settle at USD 887/MT FOB Shenzhen. In India, the R-PET market saw a remarkable transition from raw material cost-propelling price dynamics to demand-driven fundamentals. Indian R-PET prices in Q4-2021 initially inched upwards at a gradual pace stemming from the stronger virgin PET market. However, the market witnessed steep price surges during December owing to a gigantic rise in demand from the beverages sector taking support from the sustainability commitments. Key player Reliance Industries Ltd. was heard remarking that R-PET supplies looked petty against the humongous demand from the downstream sectors. Hence, the traded prices for R-PET spiked to the year’s highest value of USD 1410/MT Ex-Baddi during December.
Europe
During Q4-2021, the prices of R-PET increased as the bottle bale-to-flake conversion got impacted by the extreme shortage of energy in Europe. The crippled logistics and supply-chain networks due to the global container shortage caused a limited inflow of post-consumer bottle bales in the region, thereby causing the R-PET prices to stay strong. Meanwhile, the demand for R-PET remained prominent as the FMCG companies in Europe moved ahead on their road to sustainability with increasing investments in R-PET packaging solutions. Striding up to premium numbers, the prices for R-PET Flakes and Food Grade in Germany were assessed as USD 1798/MT and USD 2270/MT FD Hamburg during December.
For the Quarter Ending September 2021
North America
The domestic r-PET market has been going from strength to strength since March, a strong Q2 further catapulted the product among top commodities in the USA. Market participants reported that demand for r-PET has continued to be strong as the virgin PET supply remains constrained in the market. Re-processors and recyclers remarked that given the strong demand, supply has shifted from balanced in mid Q2 to tight in early Q3. Recycled polymers, in general, have gained traction in the US market in terms of demand as key virgin polymers remained tight. Prices of r-PET were assessed between USD 1540-1590 per MT on FOB basis for clear flakes.
Asia Pacific
The recurrence of Covid cases in South Asia and Southeast Asia has curtailed the outdoor movement which also severely impacted the tourism industry. Used bottle generation and its collection have also been reduced in the wake of the ongoing pandemic which tightened the feedstock availability for r-PET in key Asian markets. Demand for r-PET has been flat in Asia and it was epitomized in the current prices where pricing stands at USD 760-810 per MT on FOB basis.
Europe
Supply tightness remained the theme of the 3rd Quarter as curtailed post-consumer bottles (PCBs) availability and its recycling has restricted the production of r-PET in Europe. Demand for the material has been increasing as Europe step ahead towards sustainability, however, a snug supply of virgin material has also augured well for the demand for recycled material. Lockdowns in Europe limited the consumption of beverages bottles in the previous two quarters however vaccination drives have fruition into increasing outdoor activities in European countries. This will likely increase PCB availability and is expected to ease the material tightness in the coming quarter.
