15 April 2013 16:39 [Source: ICIS news]
LONDON (ICIS)--European recycled polyethylene terephthalate (R-PET) flake and food grade pellet demand is expected to increase in the next few weeks as warmer weather across Europe drives up consumption from the bottle market, sources said on Monday.
R-PET flake and food grade pellet material has been in oversupply. This is because cold weather during the Easter holiday period has caused weaker-than-expected demand from the downstream beverage industry.
Typically warmer temperatures see an increase in consumption of bottled drinks, and the Easter holiday period traditionally sees a peak in bottled drinks demand because of the shorter working weeks.
“Normally it [the peak bottling season] should have started during Easter, but Easter had terrible weather. Usually that's the first long weekend with lots of consumption. Until yesterday in all of Europe it was cold. Finally we have nice weather. Hopefully this will have an influence, but at the moment the stocks are full,” a food grade pellet producer said.
Stock levels were increased in anticipation of Easter demand, and, as a result inventory levels are high, suppressing demand.
“It's no secret that because of the weather the general demand in beverages have been low,” a food grade pellet and flake buyer said.
Nevertheless, with temperatures rising across Europe, this has led to expectations that stockpiles will be depleted and the delayed bottle season will begin within the next few weeks.
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