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.
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.
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.
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.
