R-PET Prices: During the Quarter Ending December 2023
NORTH AMERICA
The North American R-PET market maintained stable pricing throughout the last quarter of 2023, buoyed by a steady demand for products fashioned from recycled materials such as clothing, packaging, and household items. This moderate demand was supported by the ready availability of scrap PET material, facilitating cost-effective production and ensuring ample supply levels.
However, operational rate reductions among major recyclers and weakening demand from international markets tempered market sentiments. In the US, the R-PET market saw consistent pricing due to balanced supply and demand dynamics, particularly within the beverage and packaging sectors where sufficient inventories fostered pricing stability.
While trading activity remained subdued, the automotive and construction industries provided essential support, keeping the local market steady. Notably, the price of R-PET Food Grade Pellets FOB Los Angeles saw a notable increase of 0.3% by the quarter's end, reaching USD 1488/MT, with no reported plant shutdowns and pricing trends showing consistency throughout the period.
Get Real Time Prices of R-PET: https://www.chemanalyst.com/Pricing-data/r-pet-1233
APAC
The APAC R-PET market encountered challenges in Q4 2023, marked by diminished demand from downstream industries involved in recycled beverage bottle and packaging production. This resulted in a 4.8% decline in market value, notably impacting China where the price of R-PET Flakes Spot Ex-Shenzhen dropped to USD 849/MT, reflecting the region's overall pricing trend.
The bearish pricing trend stemmed from abundant scrap PET material availability, facilitating cost-efficient production and maintaining high supply levels. Despite no reported supply issues, subdued demand from packaging and beverage industries, coupled with reduced trading activities, exerted downward pressure on prices.
Factors such as decreasing prices of virgin PET material and rising rates of post-consumer product collection further complicated market dynamics, leading to an 11% decline in prices compared to the previous quarter. However, no plant shutdowns were reported during this period.
EUROPE
The European R-PET market faced significant challenges in Q4 2023, characterized by stable supply levels but moderate to low demand amid favorable pricing for virgin PET material. Operational rate reductions among major recyclers and increased post-consumer product collection rates led to a surplus of base materials, creating a supply-demand imbalance.
Downstream industries involved in recycled beverage bottle and packaging production experienced negative demand forecasts compared to virgin PET products, particularly evident in Germany where R-PET Flakes FD Hamburg saw a substantial price drop to USD 974/MT by the quarter's end.
Despite a 13% decrease in prices compared to the previous quarter, the market remains influenced by a surge in demand for products made from recycled materials, potentially shifting market sentiments in the future.
MEA
The MEA region witnessed a bearish market for R-PET in Q4 2023, marked by high supply levels driven by readily available scrap PET material, resulting in cost-effective production. While demand from the Bottles and Textile industries remained subdued, support from the Automobile and Construction sectors kept the local market stable.
Challenges persisted due to declining prices for virgin PET material and an increasing rate of post-consumer product collection, presenting obstacles for market rejuvenation efforts. Saudi Arabia experienced notable pricing trend changes, with moderate supply and demand for R-PET.
Trading activities remained muted, with suppliers hesitant to increase prices further due to subdued demand. In December 2023, the price of R-PET Flakes Bottle Grade Spot Ex-Jeddah in Saudi Arabia stood at USD 837/MT.
Get Real Time Prices of R-PET: https://www.chemanalyst.com/Pricing-data/r-pet-1233
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