29 April 2013 16:20 [Source: ICIS news]
LONDON (ICIS)--European recycled polyethylene terephthalate (R-PET) demand from fibre, strapping and non-food packaging applications has been estimated at 10% lower in April 2013 than the same month last year, buyers and sellers said on Monday.
“The demand is below what you'd expect,” a flake buyer said.
This is because of cold weather conditions, expectations of falling upstream costs in May, and poor macroeconomic conditions.
Longer than average winter weather conditions across much of Europe have delayed the start of the construction season, which is only now beginning in earnest.
“We had a late winter this time and still not a shining sun, so that's an issue,” an R-PET flake producer said.
Upstream virgin polyethylene terephthalate (PET) material competes with R-PET on cost in several end-use applications such as fibre and packaging.
Expectations that virgin PET prices will fall in May has led some buyers to move to the sidelines in anticipation lower virgin prices will cause R-PET prices to drop because of increased competition.
“[We] don't see any room for [R-PET] flake [prices] to increase because of virgin [PET prices],” a flake producer said.
($1 = €0.77)
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