There was a significant upturn in the PET recycling market in Germany in April. After several weak months, prices climbed markedly, which players attributed to the soaring cost of primary PET, the start of the beverage season and good bottle arisings. Clear flakes, in particular, were in higher demand and gained around €80-120/t in April, the EUWID market survey found. Accordingly, baled clear post-consumer single-use beverage bottles were selling for approximately €1,080-1,120/t ex station.
Additional support came from the primary PET market. The Middle East crisis and uncertainty about shipments through the Strait of Hormuz pushed prices for feedstocks, energy and primary plastics higher in the European market. Moreover, there were also concerns about physical deliveries and availability. The effects on the recycled PET market were mainly indirect: When primary material is costlier and availability is uncertain, there is a greater incentive to switch to clear flakes or food-grade recycled pellet.
The price of primary PET has shifted considerably, making recyclate more attractive. In some cases, the gap between the cost of clear flakes and primary PET in April was more than €300/t, as the market quoted prices of around €1,450-1,600/t for the virgin polymer. As a result, clear flakes and food-grade recycled PET (rPET) also became more attractive from a cost standpoint.
Read the complete market report for post-consumer PET bottles from deposit systems in Germany and access price change tables and graphing tools here:
