09 May 2011 15:44 [Source: ICIS news]
LONDON (ICIS)--European recycled polyethylene terephthalate (R-PET) colourless flake prices have dropped from a record high because of improving availability, buyers and sellers confirmed on Monday.
Colourless flake prices dropped €50/tonne ($71/tonne) this week to €1,250–1,400/tonne FD (free delivered) NWE (northwest ?xml:namespace>
Supplies of colourless flake have improved because of rising post-consumer collection rates at recycling facilities.
Drinks bottles are the major source of post-consumer polyethylene terephthalate (PET), and cold weather limited R-PET supply during the fourth quarter of 2010 and first quarter 2011.
Cold weather limits post-consumer collection rates because fewer bottled drinks are consumed. There is a lag of about six weeks between higher temperatures and increased availability of post-consumer material and although temperatures in
A sharp fall in virgin PET prices also supported lower colourless flake values.
In some downstream industries, such as sheeting, virgin PET and R-PET compete on cost, with buyers able to switch between the two materials with speed and ease.
Because of wastage in the production process when using R-PET, colourless flake prices must be below virgin PET prices to remain attractive to the sheeting industry.
Virgin PET spot prices are at €1,400–1,480/tonne FD NWE.
($1 = €0.70)
Additional reporting by Caroline Murray
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