Storm clouds on the horizon for German PET recyclers in July

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09.07.2020 − 

Primary PET did become slightly more expensive in June, but these hikes are not bringing any relief to PET recyclers in Germany for the time being. Primary PET remains cheap. PET recyclers are facing huge challenges amidst slow demand for recycled PET from almost all buying segments, and the summer holidays which will bring additional production curtailments and scheduled shutdowns are just around the corner. July would be another tough month, in the view of most PET recyclers. However, the industry is hoping that the tide will turn starting in the middle of August.

A few PET recyclers had to continue furloughing workers in June, too; others reduced their output and still had to put flakes on stock. Bottle arisings increased sharply starting in the second half of the month. Recyclers that were still largely running at full steam had the impression that they were being “inundated” with bottles because their competitors have scaled back their purchasing.

Bottle arisings are considered decent, although sales of single-use PET bottles are noticeably lower than last year. Sales of home carbonation systems, the increased popularity of reusable glass and a sharp reduction in the arisings of 0.5-litre PET bottles from restaurants in the wake of coronavirus restrictions are slashing volumes by much more 10 per cent. At the same time, arisings of deposit-bearing PET bottles will likely increase in the next few weeks due to warmer weather and the fact that most people will remain in Germany for their summer holidays because of the pandemic.

The full report on the post-consumer PET bottle market in Germany appears in the print and e-paper issue of EUWID Recycling & Waste Management (14/2020).

Online subscribers can access the report immediately here: Post-consumer PET bottles Germany

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