04 March 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--A drop in the Italian post-consumer polyethylene terephthalate (PET) bottle price tender for March is not expected to impact on the wider European post-consumer bottle market, where prices are unchanged, recycled PET (R-PET) sources confirmed on Monday.
Post-consumer bottles are the major feedstock for the R-PET chain.
Colourless and mixed-coloured bottle prices in NWE (northwest Europe) have been stable at a high level since 3 December because of tight supply.
Post-consumer bottle availability is typically low in winter months. This is because the major source of post-consumer collection material is used plastics drinks bottles, fewer of which are consumed during colder temperatures.
A milder-than-average winter compared to last year has meant that collection rates are higher than in the same period in 2012.
Coupled with this, volatile exchange rates have meant overseas buyers are unwilling to purchase post-consumer bottles from Europe because of the risk of a moving cost-base. As a result, material that would have been earmarked for export to Asia is remaining in Europe.
Nevertheless, increased captive usage of post-consumer bottles among major supermarket chains in Germany has counterbalanced the increased collection rates and lack of overseas buying interest, restricting bottle availability and keeping prices at a high level.
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