|  

German PET recyclers struggling with sales problems

06.06.2019 − 

Following on an already sluggish April, the month of May turned out to be a poor one for PET recyclers in Germany. Nearly all of them recorded significant sales drops. There have not yet been any signs of improvement for June, either. Without exception, recyclers and their suppliers described the situation as difficult. By mid-May at the latest, converters either scaled back their orders considerably or cancelled them entirely. In some cases, recyclers had to store flakes and regranulate because they were unable to sell them. In some cases, they are even considering cutting back production in June.

The pressure on the prices of flakes and regranulate is growing. Following a subdued start to May, when some prices were still unchanged, there was a pronounced downward trend from the middle of the month. Film and preform producers apparently still have good inventories, while primary PET is also abundant and inexpensive.

The euphoria about PET recycling seen in the first months of the year has now yielded to disillusionment. Recyclers expect further price reductions for flakes in June. Converters are now demanding a return to a considerable price differential between recyclate and primary PET. Prices for clear flakes should be well below €1,000 per tonne, they say.

The full report on the post-consumer PET bottles market in Germany appears in EUWID Recycling & Waste Management 12/2019, which will be published on 13 June. Our online subscribers can access the full report immediately here.

 

 

Tags of this news:

previous − Sharp fall in demand from German steel mills in June

Lack of momentum on German waste plastics market  − next