13 May 2013 16:19 [Source: ICIS news]
LONDON (ICIS)--European recycled polyethylene terephthalate (R-PET) demand from the fibre and strapping sectors is around 10% lower in May 2013 than in the same month in 2012, buyers and sellers said on Monday.
This is the result of several factors.
A longer than typical winter across much of Europe delayed the start of the peak-season for construction and bottling in 2013. This has resulted in higher availability of flake than is traditional for the time of year.
Coupled with this, uncertainty over the evolution of virgin polyethylene terephthalate (PET) prices have caused some buyers to move to the sidelines of the market until a clearer picture emerges. In end-use markets such as sheeting and fibre, virgin PET directly competes with R-PET.
Poor macroeconomic conditions continue to limit fibre demand, and public holidays across much of Europe have further reduced activity in the past couple of weeks.
Nevertheless, the longer than expected winter weather has had the added effect of limiting post-consumer bottle supply, as fewer bottled drinks are consumed in colder temperatures.
Used plastics drinks bottles are the major source of post-consumer material used in R-PET production.
($1 = €0.77)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections