LONDON (ICIS)--Tightness in the recycled polyethylene terephthalate (R-PET) market has led to price increases for various products this month, according to sources on Monday.
Post-consumer polyethylene terephthalate (PET) bottle supply shortages resulted in prices firming by €10/tonne for both colourless and mixed coloured post-consumer PET bottles.
Strong demand for post-consumer PET bottles has also contributed to price increases for R-PET flakes and food grade pellets.
Demand for colourless R-PET flakes remains strong and demand for mixed coloured R-PET flakes is said to be steady.
Supply constraints were said to be causing problems for some colourless R-PET flake buyers this month, and this trend is expected to continue next month.
The mixed coloured R-PET flakes market was described as stable, with steady availability and balanced demand.
However, tightness in the post-consumer PET bottles market has placed upwards pressure on R-PET flakes prices.
Therefore, both mixed coloured, and colourless R-PET flakes have firmed, although at varied levels.
Colourless R-PET flake prices were assessed at €890-940/tonne FD (free delivered) NWE (northwest Europe) while mixed coloured product is now priced at €605-675/tonne FD NWE.
Meanwhile, a wide range of prices were heard for R-PET food grade pellets this month.
Players largely agreed that prices were stable to firm, though some sources quoted decreases for October.
R-PET food grade pellets were assessed at €1150-1220/tonne FD (free delivered) NWE.
Supply and demand for R-PET food grade pellets were described as stable by sources this week.