The market for PET recyclate shows increasing signs of stabilising as the end of the beverage production season nears. In May, there were still reports of moderate price increases for flakes and post-consumer bottles in Germany, but most market participants anticipate a roll-over in June – even if order volumes remain solid.
Despite continued good demand in May, recyclers and traders believe prices have peaked. While primary plastics became cheaper yet again, recyclate saw mark-ups of €15-30 per tonne, depending on the starting level. The growing delta to primary PET means that converters are increasingly deciding against the use of recyclate, unless they are obligated by law to use it.
With prices of around €1,800 per tonne, food-grade PET regranulate costs roughly twice as much as primary PET. Similarly, transparent PET flakes cost slightly less than €1,400 per tonne, meaning they are only rarely competitive at the moment.
For June, market watchers expect the broader market to calm down, assuming the current order volumes persist. However, the weather could play a role: an unusually long stretch of above-average temperatures could boost demand, as beverage bottlers would then need additional volumes of recyclate.
Read the full monthly report on the market for post-consumer PET bottles from deposit-return systems (DRSs) in Germany and access price change tables and graphing tools here:
