PET recylced in UK for first time since August on rising demand and virgin price hike

11-Mar-16

Price of recycled polyethylene terephthalate (PET) in the UK has risen for the first time since mid-August 2015, supported by higher virgin bottle-grade prices and strong demand, according to sources in Platts. The UK R-PET hot wash flake price was assessed at GBP550/mt (US$782/mt) FD UK Wednesday, up GBP5/mt week-on-week. This was the first increase in the price since August 12 last year, according to Platts data. Since August, the R-PET price has been on a downward trend as low virgin bottle-grade prices prevented any increases in the price. This was despite strong R-PET demand reported in the UK throughout Q1. But the ice was broken as the price edged up GBP5/mt on Wednesday, as the virgin bottle-grade price continued its upward trend. The virgin bottle grade spot price in the UK was assessed at GBP685/mt (US$974/mt) FD UK Wednesday, strengthening GBP15/mt (US$21/mt) from last week. It has been rising steadily since early February, and its impact has finally been felt in the R-PET market, as R-PET buying interest firmed this week. A UK R-PET seller source said converters had low stocks and were seen restocking this week. A second seller source agreed there was "strong demand." Although the UK had a modest uptick in the R-PET price, prices in Northwest Europe were seen unchanged this week despite further rises in NWE virgin prices. R-PET was assessed at Eur734/mt FD NWE Wednesday, remaining at the same price level for the 12th consecutive week. A R-PET source in Southern Europe said the R-PET price remained under pressure from "low virgin prices."