For seven months, PET recyclers have been hoping for a turnaround in sales. But the situation on the market for recycled PET remains gloomy and May brought no improvement. Demand for recycled pellet (rPET) and flakes remained extremely weak, while both post-consumer bottles and recyclate stocks are rising. There are no signs of improvement in June either, according to market participants. Fewer and fewer companies are honouring contracts and still using recycled PET in the production of new bottles and film.
The pressure is immense: German market insiders report that buyers will try to renegotiate offers if they receive cheaper offers from other recyclers. Flakes from neighbouring countries are also being offered at favourable prices in Germany because the recyclers there are finding hardly any buyers in their domestic markets. High levels of recyclate supply in Europe come at a time when demand is very weak overall, market participants report.
The further erosion in primary PET prices is increasing the pressure on recyclers. Stocks of both PET bottles and flakes continue to grow. The warmer temperatures since the end of May are expected to significantly increase post-consumer bottle arisings.
Read the full monthly report on the market in Germany and access price change tables and graphing tools here: