04 November 2013 18:15 [Source: ICIS news]
LONDON (ICIS)--The Corepla November post-consumer polyethylene terephthalate (PET) tender in Italy for mixed coloured and colourless bottles finalised €20/tonne up from the October tender, surprising market participants who had overwhelmingly anticipated a reduction.
Post-consumer PET bottles are the feedstock for the recycled polyethylene terephthalate (R-PET) chain.
The November mixed colour bottle tender finalised at €270-310/tonne ($365-419/tonne) ex-works, an increase of €20/tonne from October, a source at the collection consortium confirmed on Monday.
The colourless bottle tender finalised at €390-420/tonne ex-works, also an increase of €20/tonne, the source confirmed.
Market sources were surprised by the increase and unsure of a reason as they had expected prices to fall, reflecting falling demand and good supply. Now, the consensus is for December prices to fall.
“This price is about same as in the peak season, in April, May, June or July. I cannot say why,” said one market source, reflecting general opinion.
Despite the price increase for post-consumer bottles, Italian flake prices were unchanged from October. One source said it believes recyclers took a margin hit to protect their market share as the seasonal winter lull draws near and demand tapers off.
Although downstream R-PET flake demand has fallen following the end of the peak-summer period, which began and ended later than usual this year, continued high collection rates in recent weeks at post-consumer recycling facilities has meant an abundance of material.
Availability is expected to fall in November and December, with the cold weather.
Corepla is a not-for-profit organisation, which is part of "CONAI System" (National Packaging Consortium), and was established in November 1997.
($1 = €0.74)
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