For the Quarter Ending September 2024
North America
In Q3 2024, the Recycled Polyethylene Terephthalate (R-PET) market in North America exhibited a stable yet slightly upward price trend. The market saw prices increase from the previous quarter, with a quarter-on-quarter change of approximately 2.6%. This increase was influenced by a combination of factors, including moderate downstream demand from the packaging and textile industries. Despite the steady demand, increased inventory levels due to higher recycling outputs exerted pressure on prices, preventing further upward movement.
The costs of key feedstocks, such as Purified Terephthalic Acid (PTA) and Mono Ethylene Glycol (MEG), experienced a gradual decline, contributing to a more balanced pricing environment. Improved container availability for exports also played a role in maintaining market equilibrium. In the United States, price adjustments were evident, but overall changes remained within a narrow range, reflecting a period of relative stability.
The quarter concluded with the price of R-PET Clear Flakes DEL in Los Angeles standing at 1,178 USD/MT, unchanged from August levels. Despite economic uncertainties, the pricing environment remained steady, underpinned by a balance between supply and demand dynamics. This period of stability highlighted the resilience of the R-PET market in adapting to both domestic and global market conditions.
APAC
In Q3 2024, the Recycled Polyethylene Terephthalate (R-PET) market in the APAC region showed a slight upward trend, reflecting a more stable pricing environment compared to earlier fluctuations. The price movement was influenced by a mix of factors, including an oversupply in the market and steady demand from downstream sectors such as packaging. Despite global economic uncertainties, the region managed to maintain a degree of price stability through balanced supply chain conditions and competitive pricing strategies. In China, which saw some of the most notable price changes, the market faced challenges such as seasonal variations and the competitive landscape from lower-priced alternatives. These factors contributed to a marginal increase in prices during the quarter. Compared to Q2, the average prices in Q3 rose by approximately 1.4%, highlighting a period of relative steadiness amidst broader market challenges. The latter part of the quarter recorded a minor decrease of about 1% between August and September, indicating a slight correction in pricing. The quarter ended with R-PET Flakes FOB Shenzhen priced at 823 USD/MT, reflecting a cautious yet stable market outlook. This pricing trend underscored the region's ability to manage supply-demand dynamics while navigating through economic uncertainties, making Q3 a period of resilience for the R-PET market.
Europe
Throughout Q3 2024, the European market for Recycled Polyethylene Terephthalate (R-PET) experienced a moderate decline in prices following an initial rise earlier in the year. The market dynamics were shaped by various factors, including changes in feedstock availability and demand trends across key sectors. An oversupply of Purified Terephthalic Acid (PTA), due to the restart of production plants, resulted in lower feedstock costs, which applied downward pressure on R-PET prices. Simultaneously, moderate demand from downstream industries like packaging and elevated inventory levels led to cautious buying behaviour, contributing to the overall price softness. In Germany, which saw the most notable price adjustments, the market mirrored regional trends. Despite the increase in average prices by approximately 2.7% from the previous quarter, compared to the same quarter last year, there was a notable decline, highlighting ongoing market challenges. The second half of Q3 recorded a slight decrease of about 1% compared to the first half, indicating a period of adjustment. The quarter concluded with R-PET Food Grade FD Hamburg prices at 1,703 USD/MT, reflecting a cautious market sentiment amidst fluctuating supply and demand dynamics. This quarter emphasized the impact of feedstock oversupply and moderate demand on pricing trends in the European R-PET market.
MEA
In Q3 2024, the Recycled Polyethylene Terephthalate (R-PET) market in the MEA region exhibited a stable pricing environment, with minimal fluctuations observed throughout the quarter. The market's consistency was influenced by several factors, including steady demand from key industries like packaging and textiles and an adequate supply of R-PET from local recycling facilities. Additionally, regional government initiatives supporting recycling efforts bolstered the overall market stability, helping to maintain equilibrium in prices. While there was a notable decrease in prices compared to the same quarter last year, the quarter-on-quarter change in 2024 remained nearly flat, reflecting a period of price stabilization. In Saudi Arabia, which saw the most notable adjustments, prices showed resilience against external pressures, maintaining a balanced trend. The latter part of the quarter recorded a minor dip, with prices settling at 845 USD/MT for R-PET Flakes Bottle Grade Spot Ex-Jeddah. This stability was further supported by seasonal factors that kept market sentiment neutral. The consistent pricing patterns observed during the quarter underscore a sense of predictability, highlighting the region's capacity to manage supply-demand dynamics effectively despite broader economic uncertainties.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been marked by a notable increase in Recycled Polyethylene Terephthalate (R-PET) prices across the North American region. This quarter has seen significant upward pressure on R-PET pricing, driven by a combination of robust demand from the packaging and textiles industries, and persistent supply constraints exacerbated by vessel shortages and elevated freight costs.
Heightened crude oil prices have further inflated production costs, contributing to the price surge. In the USA, R-PET prices have experienced the most pronounced changes within the region, reflecting an overall trend of increasing prices and a bullish market sentiment. Seasonality played a critical role, as the packaging industry ramped up demand in preparation for peak summer sales, adding further pressure on an already tight supply chain. The correlation between rising transportation costs and higher raw material expenses also cannot be overstressed, as it significantly impacted the pricing landscape.
The first and second halves of the quarter showed a 1.6% price difference, with the latter half seeing higher prices due to compounded demand pressures and logistical challenges. Concluding the quarter, the price of R-PET Clear Flakes in the USA stood at USD 1175/MT DEL Los Angeles, illustrating the escalating pricing environment. Overall, the R-PET market in North America, particularly the USA, reflects a positive pricing environment, driven by sustained demand and constrained supply.
APAC
In Q2 2024, the R-PET market in the APAC region exhibited a dynamic pricing environment, primarily driven by a confluence of factors resulting in fluctuating market prices. Several key elements influenced the price ascensions observed during this quarter. Increased demand from the packaging and textile industries, coupled with supply constraints due to vessel shortages and elevated freight charges, played a pivotal role. Additionally, the rise in crude oil prices augmented production costs, further propelling the upward price trajectory of R-PET. An intensified global focus on sustainable practices and enhanced consumer awareness also exerted pressure on manufacturers to incorporate more recycled materials, thereby contributing to the heightened demand for R-PET. China, in particular, witnessed the most substantial price changes within the APAC region. Seasonal trends, such as the summer surge in packaging demand, significantly impacted the R-PET market. Correlations between seasonal demand and price increases were evident, with a notable 2.2% price comparison between the first and second halves of the quarter. Despite a significant year-over-year price reduction from the same quarter last year and a -2.1% decline compared to the previous quarter, the market exhibited a remarkable rebound, culminating in an end-of-quarter price of USD 830 per MT for R-PET flakes on FOB - Shenzhen basis. This relatively stable yet incrementally positive sentiment underscores the resilient nature of the R-PET market in China amidst external economic pressures and fluctuating supply-demand dynamics. Overall, the pricing environment has maintained a cautiously optimistic outlook, reflecting the sector's adaptive strategies and sustained demand growth.
Europe
The second quarter of 2024 saw a robust increase in Recycled Polyethylene Terephthalate (R-PET) prices across Europe, driven by a confluence of market dynamics. The escalating costs were primarily influenced by heightened demand from key sectors such as packaging and consumer goods, which sought sustainable materials in response to regulatory pressures and consumer preferences. Supply constraints exacerbated by logistical challenges, including vessel shortages and increased freight charges, further propelled prices upward. Additionally, rising crude oil prices contributed to higher production costs, adding another layer of upward pressure on R-PET prices. In Germany, the epicentre of R-PET price volatility, the market experienced significant fluctuations. The overall trend was bullish, with prices exhibiting a clear upward trajectory. Seasonality played a role, as increased demand from the beverage sector during the summer months coincided with preparations for peak sales, leading to a surge in prices. The correlation in price changes was evident, with a significant increase from the previous quarter, indicating a positive pricing environment. However, when compared to the same quarter last year, prices were down significantly, underscoring the market's volatility and the impact of broader economic conditions. A distinct price comparison between the first and second halves of the quarter revealed a substantial increase, reflecting the sustained demand and supply constraints. Concluding the quarter, the price of R-PET Flakes FD Hamburg in Germany stood at USD 1,330 per metric ton. Overall, the pricing environment for R-PET in Europe, particularly in Germany, has been marked by a positive sentiment, driven by strong market fundamentals and external economic factors.
MEA
In Q2 2024, the pricing environment for Recycled Polyethylene Terephthalate (R-PET) in the MEA region has witnessed an overall decline, driven by several pivotal factors. A moderated demand from key sectors such as packaging and textiles, coupled with an oversupply of post-consumer PET bales, has exerted downward pressure on prices. Focusing on Saudi Arabia, which has experienced the most significant price variations, the trends indicate a persistent decline in R-PET prices. Seasonality played a crucial role, as demand typically waned post-peak seasons, contributing to the downward trajectory. The correlation between increased supply and limited demand further exacerbated the decrease in market prices. Compared to Q2 of the previous year, R-PET prices have dropped by notably, underscoring a negative sentiment in the market. When juxtaposed with the preceding quarter of 2024, there was an increase of 1.55%, suggesting a brief period of stability before resuming the downward trend. Analysing the price dynamics within the quarter, the first half saw a slight decline of 1.75% compared to the second half, reflecting ongoing supply pressures and tepid demand. The quarter concluded with R-PET Flakes Bottle Grade Spot Ex-Jeddah priced at USD 845/MT. This consistent decrease highlights a negative pricing environment throughout Q2 2024, driven primarily by supply-demand imbalances and economic uncertainties.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American R-PET market, particularly in the USA, experienced modest growth amidst variable market conditions. The period began with a steady state, prices holding at USD 1070/MT, amidst cautious investment due to uncertainty in downstream demand and increased post-consumer product collection.
Prices gradually ascended to USD 1130/MT by quarter's end, reflecting a market responding to a complex interplay of factors. Early in the quarter, a spike in spot resin trading due to extreme weather conditions and logistical disruptions pointed to price increases. As the quarter progressed, the demand for R-PET showcased a steady climb, attributed to a heightened emphasis on sustainability and legislative pressures, despite a low-demand backdrop in downstream sectors like textiles and packaging.
The market remained stable with well-managed inventories and efficient supply chains. Occasional price increases were driven by heightened demand in import countries and constrained shipping capacity, indicating the market's sensitivity to external logistics and demand fluctuations. Despite global economic pressures, North America's R-PET market concluded the first quarter with stable demand and moderate supply levels, underpinned by a steady price increment.
APAC
In Q1 2024, the APAC R-PET market faced challenges with fluctuations in demand influencing pricing dynamics. Initially stable, R-PET prices began at USD 865/MT on FOB – Shenzhen basis, but experienced a gradual decline, bottoming out at USD 800/MT by March end, reflecting a market downturn amid uncertain demand, particularly from packaging and construction sectors. Despite early stability, driven by demands in automobile and construction, prices dipped due to an oversupply, weak consumption, and cautious purchasing amidst buyers in downstream industries. Seasonal factors, including the Lunar New Year, led to pre-emptive stockpiling, causing a temporary slowdown in spot transactions. However, seamless supply chain operations and sufficient inventories maintained moderate supply levels. Toward the quarter's end, a slight rebound occurred, influenced by lower plastic prices and a pickup in operational efficiency. Ultimately, the quarter concluded with a 3% price reduction, signalling a cautious market with conservative investment approaches by key players due to the increased collection of post-consumer products and average demand from traditional R-PET consuming sectors.
MEA
In Q1 2024, the R-PET market in the MEA region, particularly in Saudi Arabia, showcased a resilient but gradually strengthening performance. The quarter commenced with price stability at USD 820/MT amid demand concerns and surplus supply, which curtailed market dynamics and led to a conservative investment stance. As January progressed, a modest rise was observed, attributed to sporadic demand spikes, and limited material availability. The market-maintained stability through February, defying regional tensions and global market trends, because of balanced inventory levels and steady domestic production. Towards the quarter's end, a more pronounced upward trend emerged, with prices peaking at USD 860/MT, driven by increases in upstream PET prices, spot purchase activities, and restocking demand, particularly from the automobile and construction industries. Despite fluctuations in global oil prices and the presence of virgin PET, R-PET in MEA demonstrated an ability to navigate through market adversities with adaptive supply chain strategies, ultimately achieving a moderate price increase by quarter's end.
Europe
In Q1 2024, the R-PET market in Europe, particularly in Germany, witnessed a progressive climb in prices from USD 950/MT to USD 1080/MT, highlighting a market adapting to varying demand and supply conditions. The quarter kicked off with market stability despite uncertainty in downstream demand and a higher collection rate of post-consumer products. A subsequent steady rise in prices was observed, catalysed by a boost in demand from packaging industries and tightening inventory levels. Upstream crude oil prices lent cost support, allowing traders to enhance margins amidst competitive markets. Throughout the quarter, the European R-PET market grappled with regulatory challenges affecting recycled plastics' use in food packaging, impacting market growth. However, demand surges for spot volumes and an uptick in virgin PET prices offered recyclers an avenue to elevate R-PET prices without facing stiff competition, pushing prices upward. The final weeks saw further price hikes influenced by strong demand, supply constraints, and increased imports of recycled plastics into the EU. Despite pressures from the virgin material sector and global economic headwinds, the R-PET market showcased robust growth, underpinned by consistent demand from key manufacturing sectors.
For the Quarter Ending December 2023
North America
The North American R-PET market witnessed stable pricing throughout the current quarter of 2023. The surge in demand for products made from recycled materials, including clothing, packaging, and household items, contributed to moderate demand for R-PET. The availability of base material scrap PET material resulted in low-cost production of the product, leading to high supply levels.
However, the reduction in operation rates from major recyclers and deteriorating demand from overseas markets affected the market sentiments. The US R-PET market experienced a stable supply and moderate demand, leading to consistent pricing. The presence of ample inventories within beverage and packaging industries led to subdued trading activities, fostering a sense of pricing stability.
The surge in demand from the automotive and construction sectors provided support to the local market, keeping it steady. The price of R-PET Food Grade Pellets FOB Los Angeles witnessed a significant increase of 0.3% over the past month from November to December, reaching USD 1488/MT as the quarter came to an end. There were no reports of any plant shutdowns during the quarter. The trend, seasonality, and correlation of R-PET pricing for the US remained consistent throughout the quarter, with no significant percentage changes.
APAC
In Q4 2023, the APAC R-PET market faced a challenging quarter due to reduced demand from downstream industries involved in the production of recycled beverage bottles and packaging materials. The market witnessed a decline in its value by 4.8%, with the price of R-PET Flakes Spot Ex-Shenzhen descending to USD 849/MT in China, which has the maximum impact on the market.
The bearish pricing trend was due to the easy availability of base material, scrap PET material, leading to low production costs. The market supply remained high, with no reported supply issues, while demand remained moderate to low due to weakened demand from the packaging and beverage industries. The reduction in trading activities has also plunged the price trend.
The R-PET market has been impacted by the decreasing price of virgin PET material and the rising rate of post-consumer product collection, presenting challenges for recyclers seeking to revitalize market growth. The quarter witnessed a 11% decline in prices from the previous quarter, while the percentage change in the last year same quarter price was declined by14%. No plant shutdowns were reported during this quarter.
Europe
The European R-PET market in Q4 of 2023 faced a challenging quarter. The market witnessed a stable supply trend with high supply levels due to consistent influxes of material into the market. However, the demand remained moderate to low, and the market faced the impact of favourable prices for virgin PET material. The reduction in the operation rate from major recyclers and the increased collection rates for post-consumer products led to enhanced availability of base materials, creating a supply-demand imbalance.
Additionally, the market grappled with negative demand forecasts from downstream industries involved in the production of recycled beverage bottles and packaging materials, particularly when compared to the demand for virgin PET products. Germany faced a significant decline in R-PET prices, with R-PET Flakes FD Hamburg dropping to USD 974/MT by the end of the quarter.
The country's market witnessed a bearish trend with high supply and low demand, and a surge in demand for products made from recycled materials might influence market sentiments. The percentage change from the current to the previous quarter was 13%. The quarter ending price of R-PET Flakes FD Hamburg in Germany was USD 974/MT.
MEA
The fourth quarter of 2023 saw a bearish market for Recycled-polyethylene terephthalate (R-PET) in the MEA region. The supply of R-PET remained high, with easy availability of base material scrap PET material resulting in low cost of product production. Demand for R-PET from the Bottles and Textile industries remained subdued, while healthy demand from the Automobile and Construction sectors provided support to the local market, keeping it steady.
The market contended with the impact of declining prices for virgin PET material and an escalating rate of post-consumer product collection, adding complexities for recyclers striving to stimulate market rejuvenation. Saudi Arabia witnessed the maximum change in pricing trends, with a moderate supply and moderate demand for R-PET. The trend for R-PET prices in Saudi Arabia showed -2% change from the current to the previous quarter.
Trading activities remain muted this week with no firmer offers and bids which can support the price trend. Trading fundamentals within the Middle Eastern market also affected as the demand was not up to the mark and suppliers remain sceptical to increase the prices further. In Dec 2023, the price of R-PET Flakes Bottle Grade Spot Ex-Jeddah in Saudi Arabia was USD 837/MT.
