NWE R-PET market stabilizing on firmer bottle-grade prices

Northwest European recycled polyethylene terephthalate prices were reported to be stabilizing on strengthening bottle-grade prices, sources said.

The NWE R-PET price was assessed at Eur750/mt FD NWE Wednesday, steady week-on-week, following large monthly drops in September. The NWE R-PET price fell from Eur820/mt in the last week of August to Eur750/mt at the end of September.

“The [R-PET] price is stable due to re-stabilizing of the virgin price”, an R-PET producer said.

The NWE bottle-grade spot price fell during the past few months from a year-to-date high of Eur1,150/mt on May 20 to Eur890/mt at the beginning of September. But prices have been on the rise through September on better-than-anticipated uptake by converters.

The NWE spot price was assessed at Eur930/mt FD NWE Wednesday, marking the fourth consecutive weekly rise. The increase was supported by tighter spot availability as producers enter maintenance works and prioritize contractual production.

Firmer spot prices on the bottle-grade market supported the NWE R-PET price as bottle-grade PET will eventually serve as the raw material for R-PET. There is usually a lag of 4-6 weeks before the trend in the bottle-grade price is reflected in the R-PET price.

The spread between the NWE bottle-grade and R-PET prices reached an 18-week high of Eur180/mt on Wednesday.

The market is “a bit more predictable”, a second R-PET producer source said, pointing to steadier pricing this week compared to previous weeks when the R-PET prices continued to fall.

He added that he expected R-PET prices to be stable for the rest of the year unless bottle-grade prices move significantly.

Fundamentals were reported to be steady.

“Demand is ok”, a third R-PET producer source said, who sells to both Southern and Northern Europe.

Prices were pegged in the range Eur750-800/mt this week, the same range as the previous week.