05 August 2013 16:29 [Source: ICIS news]
LONDON (ICIS)--European recycled polyethylene terephthalate (R-PET) demand in August 2013 is expected to be around 10% higher than the same month in 2012 because a delayed start to the bottling season has extended production into the summer, sources said on Monday.
Coupled with this, macroeconomic recovery in the Mediterranean region has meant that end users are expected to close for three weeks in August, compared with the traditional four.
“In the Mediterranean, economies [are] recovering so there seems to be an optimism. [I] think people [customers] will shut down for three weeks instead of four,” another flake producer said.
The start of the peak season for downstream bottle-to-bottle production was delayed this year because of a longer than usual winter.
Rising temperatures in recent weeks have led to a spike in demand and extended the bottling season beyond its traditional end in August.
Nevertheless, a minority of sources said that an increase in demand has been counterbalanced by a rise in post-consumer bottle collection rates – also caused by higher temperatures. Used plastic drinks bottles are the major source of post-consumer material used in R-PET production. When temperatures are higher, more plastic bottled drinks are consumed.
“Demand is high, but availability is much higher,” a flake seller said.
($1 = €0.75)
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