08 July 2013 16:09 [Source: ICIS news]
LONDON (ICIS)--European recycled polyethylene terephthalate (R-PET) demand is expected to increase by up to 20% in July compared with June, buyers and sellers said on Monday.
The rise in consumption is forecast because of increased demand from the bottle-to-bottle sector caused by rising temperatures across Europe.
“When warm weather comes in it [demand] does go [up] very quickly. The problem is that always there has been sufficient demand in summer and overcapacity in winter,” a flake producer said.
Bottled drink consumption increases as temperatures rise and the summer period typically sees a spike in R-PET demand. In 2013, colder than average temperatures in June delayed the start of the bottling season, which is only just beginning.
The delay to the start of the season was partly responsible for a 20-25% fall in demand in the second quarter of 2013 compared with the same period in 2012. July 2013 demand is expected to be similar to that in July 2012.
The spike in demand is not influencing prices because the delayed start of the season has meant that R-PET stockpiles are high.
“I would say about 20% more demand in July, but there is enough material. There's also a lot of material available because of high stockpiles so prices didn't go up,” a flake buyer said.($1 = €0.78)
|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