Europe R-PET Flake prices expected to increase on tight supply

25 March 2013 23:59  [Source: ICIS news]

LONDON (ICIS)--European recycled polyethylene terephthalate (R-PET) flake prices are expected to increase in April because of tight supply, sources said on Monday.

“For flakes it's getting tighter as there's less post-consumer bottles,” a flake producer said.

Low availability of feedstock post-consumer polyethylene terephthalate (PET) bottles is tightening the supply of R-PET flakes. Because inventory levels have been rationalised on cash-flow concerns, pipelines are empty meaning that supply shortages could be felt quickly in the market.

As a result, several players are predicting that flake prices will increase in April, although exact targets are yet to be set.

“Customers are saying they want more material. The pipeline is very empty. There’s not a lot of stock at convertor level.... in April we've been told to look out for a price rise [for flakes],” a flake buyer said.

Flake prices are yet to move as trading has been subdued due to public holidays in parts of Europe.

Cold weather across much of Europe is reducing post-consumer bottle availability in Europe. The major source of post-consumer PET is used plastics drinks bottles, fewer of which are consumed in colder temperatures. This has not affected post-consumer bottle prices, which were already at a high level.

Nevertheless, there was talk in the market that major supermarket chains in Germany will begin using mixed coloured bottles captively in April, but this could not be confirmed at source.

($1 = €0.77)

By: Mark Victory
+44 208 652 3214

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