ICIS WEBINAR: Regulations bolster R-PET market amid coronavirus

Al Greenwood

01-Apr-2020

HOUSTON (ICIS)–Sustainability pledges and regulations are bolstering the market for recycled polyethylene terephthalate (R-PET), even amid the effects of the coronavirus and the crash in oil prices.

The result has kept European prices for food-grade R-PET above those for virgin bottle-grade PET, said Matt Tudball, ICIS senior editing, recycling.

He was among the speakers in the webinar Packaging Forum: Is Coronavirus Jeopardising Sustainability Efforts? It is part of a series hosted by ICIS.

Even prices for flake R-PET are higher, as shown in the following chart.

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The coronavirus has led to panic-buying, which has provided additional support for food-grade R-PET, Tudball said. This is being tempered by the the sharp decline in prices for virgin PET, which has fallen because of the crash in the oil market.

Flake R-PET prices generally reflect those for bales, since the material lacks the same amount of regulatory support as food-grade R-PET, said Helen McGeough, ICIS senior analyst, recycling. Another factor dragging it down is what McGeough described as legacy misconception that recycled plastics should trade at some kind of discount.

There had been some concerns about the coronavirus disrupting supplies of R-PET because the illness had sickened sanitation workers in Europe, Tudball said. These workers are staying home, leading to reports of manpower shortages.

There had been anecdotes about cities prioritising household waste collection over recycled material, he said. As a result, plastic that would have normally been recycled was being burned or tossed in landfills.

These anecdotes were arising in France, and similar problems could arise in other countries with the coronavirus, Tudball said. In France, the problem seems to have passed and trash collection is returning to normal.

Wednesday’s webinar recording is available here.

Sign up here for industry updates on “Making sense of market events: Coronavirus and oil price slumps”. Join the other webinars here.

Visit the ICIS coronavirus topic page for analysis of the impact on chemical markets and links to latest news.

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