European R-PET players see October price rollover

LONDON (ICIS)–European recycled polyethylene terephthalate (R-PET) players are looking ahead to October prices, with most players firmly expecting that prices will rollover from September, sources said on Monday.

Downward pressure on virgin polyethylene terephthalate (R-PET) prices, combined with relatively tight availability of post-consumer bottles and soft demand, are keeping post-consumer bottle and R-PET prices stable, sources say. New virgin PET capacity in Europe is weighing on prices.

Virgin polyethylene terephthalate (PET) competes directly with R-PET in certain applications. Post-consumer bottles are the primary feedstock.

“Rollovers on the bales [post-consumer bottles], flake, R-PET, everything the same [for October]. Very flat market at the moment. Prices will be stable for October. [There are] not plenty of bottles in market, but also not huge demand,” a flake and pellet producer said.

Traditionally, availability of feedstock post-consumer bottles increases during the summer time, when more bottled drinks are consumed and recycled, allowing re-stocking ahead of winter, when fewer bottled drinks are consumed and recycled. This year, however, sources say supply is tighter than usual.

Most sources are unsure of the exact reasons behind the lower availability of post-consumer bottles this year, but ideas behind the shortfall range from greater exports to Asia, or to Eastern Europe, or to updated bottle designs, incorporating light-weighting technologies, multi colours and layers, which reduce the recycling yield and efficiency.

“We’ve not settled yet for October. We think [it will be] more or less stable, maybe a little bit [of a] decrease, we will see. There are not too many [post-consumer] bottles in the market, but the situation is stable. Enough for input we need, but more difficult to take bottles on stock. Pressure from virgin, not enough bottles.”  A strapping manufacturer said.