Recycled Polyethylene Terephthalate (R-PET) market in the U.S. has recently shown a mixture of constant and varying prices across different product segments, according to market analyses by ChemAnalyst.

As of the first week of May 2024, prices for R-PET food grade pellets have remained stable, regularly priced at USD 1,600 per metric ton on FOB basis in Los Angeles. This steadiness indicates a balanced market, where the supply and demand for these pellets are well-matched, ensuring no significant disruptions in the pricing structure.

However, the broader R-PET market has experienced notable price shifts over the past month, highlighting the dynamic nature of supply and demand for different R-PET products. R-PET clear flakes, vital for certain recycling processes, have seen a 4% increase in price from the beginning of April to May, now exceeding $1,200 per ton. This rise signals a surge in demand coupled with a potential shortage, inducing buyers to obtain additional supplies and explore alternative sources.

Further, the prices for R-PET clear flakes for delivery in Los Angeles have seen a considerable increase, climbing by approximately 17% during the same period, with prices varying from about $1,200 to $1,400 per ton. This deviation between FOB and delivery prices, averaging around $200 per ton, underscores the additional costs associated with distribution within the market.

In contrast, R-PET food grade pellets have shown minimal price variation, hovering around $1,500 per ton, a fluctuation of about 6% till last week of April, post which price remained stable. This relative stability indicates a consistent equilibrium between supply and demand specific to these pellets, which helps maintain market stability.

Market experts at ChemAnalyst attribute the recent fluctuations in R-PET prices to a combination of factors. The increase in R-PET clear flakes prices is primarily due to heightened demand and a shortage of supplies. Conversely, the stability in R-PET food grade pellets prices suggests a steady market with a consistent supply and demand balance.

The U.S. R-PET market is navigating through a complex landscape, where different product segments experience varying supply and demand dynamics. Market participants are closely monitoring these trends and adapting their strategies accordingly to ensure efficient operations.

This month, the R-PET market in the U.S. is expected to grow and then maintain stability with slight fluctuations in prices driven by factors like crude oil market developments and freight charges. Early June 2024 may see continued demand from end-user industries like food and beverages, potentially influencing R-PET prices.

As recycling and sustainability efforts get momentum, the role of the R-PET market in the U.S. continues to be central in supporting a circular economy. Market participants, including recyclers, manufacturers, and consumers, are closely observing these price movements to make informed decisions. The ongoing adjustments in the R-PET market reflect its critical importance in recycling and sustainability initiatives across the market.