recycled polyethylene terephthalate Pricing Assessment

Markets Covered:

United States

Germany

Saudi Arabia

China

India

Recycled Polyethylene Terephthalate Price Trend, Analysis and Forecast

In Q1 2024, the US R-PET market experienced a bullish trend, with the price of Recycled Polyethylene Terephthalate (R-PET) Flakes increasing by approximately 6.2%. Despite softer demand from key downstream sectors such as textiles and bottle manufacturing, the market held steady, benefiting from a well-balanced supply and demand dynamic. Manufacturers adopted a cautious stance in the spot market, where trading activity remained subdued, reflecting broader uncertainty in consumption patterns. The early part of the year saw industry players navigating these challenges, but the R-PET market remained resilient, maintaining its price stability in the face of shifting demand dynamics.

In Q2 2024, the R-PET market saw a more pronounced price increase, rising by 9.5% in North America. This surge was primarily driven by heightened demand from the packaging industry, bolstered by the seasonal uptick in consumer goods and packaging requirements during the summer months. Simultaneously, Germany’s R-PET market also experienced rising prices due to a perfect storm of supply constraints, increased production costs, and strong demand across multiple sectors. A significant contributor to the price rise was the shortage of post-consumer bales, which are essential for R-PET production. The tightening supply of bales left suppliers with little choice but to raise their rates to compensate for the shortfall.

However, by the beginning of Q3 2024, R-PET prices began to normalize after the strong upward momentum of the previous quarters. This cooling trend was largely attributed to a temporary decline in demand from sectors such as food packaging and bottling, which had been key drivers of R-PET consumption earlier in the year. As a result, prices decreased slightly throughout August, reflecting a market stabilization after the earlier price hikes. Despite the stabilization, the overall market conditions were still influenced by the ongoing balance between supply and demand.

Looking ahead to Q4 2024, the R-PET market is expected to experience a further decline in prices, driven by a combination of factors. With the arrival of colder weather in many regions, demand for R-PET, particularly from the packaging industry, is anticipated to soften. Additionally, the stabilization of freight rates, following the disruption caused by the Red Sea crisis and port congestion, will further ease cost pressures. The demand for R-PET in agricultural films is also expected to fall, except in regions where winter crop cycles or continuous agricultural activity persist. This convergence of factors suggests a potential dip in prices as the market adjusts to the seasonal slowdown.

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Historically, several events have caused significant fluctuations in recycled polyethylene terephthalate prices

European Union’s Recycling Mandates (2021-2025): The EU’s 2025 mandate, requiring 25% recycled content in plastic bottles and higher targets for other packaging, has been driving up demand for R-PET, placing upward pressure on prices as producers seek more recycled material to meet these new requirements.

Global Shipping and Freight Rate Surges (2021-2022): The pandemic-induced global shipping container shortages, port congestion, and supply chain disruptions in 2021 caused freight rates to surge, leading to higher transportation costs. This pushed R-PET prices higher as shipping expenses for imports and exports increased.

Suez Canal Blockage (March 2021): The blockage of the Suez Canal in March 2021 disrupted global shipping and supply chains, including the transport of R-PET and its raw materials. This caused delays and contributed to price volatility in the R-PET market.

Oil Price Fluctuations (Various Years): Oil price changes have historically impacted R-PET prices. In 2020, during the COVID-19 pandemic, falling oil prices reduced the cost of virgin PET, making R-PET less competitive. Conversely, rising oil prices in 2021 contributed to an increase in R-PET prices as the cost of virgin PET climbed.

COVID-19 Pandemic (2020-2021): The COVID-19 pandemic caused widespread disruptions in global supply chains, including the recycling sector. Lockdowns, labour shortages, and a slowdown in production led to reduced supply of post-consumer bales, which contributed to price increases for R-PET in 2020 and 2021.

China’s Plastic Waste Import Restrictions (2018-2019): In 2018, China imposed strict restrictions on importing plastic waste, including post-consumer bales, causing a global supply shortage for R-PET production. This led to a significant surge in R-PET prices due to limited material availability and increased competition for recycled content.

Methodology and Specifications

recycled polyethylene terephthalate Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: aggregates real-time pricing data from a diverse range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions.

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including producers, suppliers, traders, and end-users, across major R-PET production hubs. This ground-level intelligence is crucial for understanding localized market dynamics.

Supply Chain Monitoring: We track the entire R-PET supply chain, from raw material availability to production and distribution channels. This includes monitoring feedstock prices, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: continuously monitors global geopolitical developments, such as conflicts or trade disputes, which can significantly impact R-PET prices. Our analysis includes potential disruptions to supply chains and their immediate and long-term effects on pricing.

Natural Disasters and Climate Events: We assess the impact of natural disasters, such as hurricanes or winter storms, on R-PET production facilities, particularly in vulnerable regions like the U.S. Gulf Coast. These events are factored into our price forecasts and supply outlooks.

Economic Shifts: evaluates macroeconomic trends, including global economic growth, inflation rates, and sector-specific demand (e.g., construction, packaging), to predict shifts in R-PET demand and corresponding price movements.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain a comprehensive database of global R-PET production facilities, tracking their operational status, maintenance schedules, and output levels. This allows us to assess current supply availability accurately.

Future Capacity Projections: Our research includes detailed forecasts of upcoming R-PET production capacities, factoring in new plant constructions, expansions, and technological advancements. This helps in predicting future supply trends and potential price stabilization.

Demand Forecasting

Sectoral Demand Analysis: provides in-depth analysis of demand trends across key sectors, including packaging, automotive, and construction. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments.

Global Demand Dynamics: Our methodology considers regional demand variations and how they influence global R-PET pricing. This includes understanding the impact of shifts in manufacturing bases, trade policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: utilizes advanced econometric models to forecast R-PET prices, incorporating real-time data, historical trends, and projected market conditions. Our models are continuously refined to enhance accuracy and predictive power.

Scenario Analysis: We conduct scenario-based assessments to evaluate potential future market conditions. This includes best-case, worst-case, and most likely scenarios, helping our clients prepare for a range of market outcomes.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations.

Ongoing Support: offers continuous updates and personalized support to our clients, ensuring they have the most up-to-date information to make informed decisions. Our experts are available to discuss specific market developments and provide tailored advice.

This research methodology ensures that delivers the most accurate, timely, and actionable R-PET pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

CAS No

25038-59-9

HS Code

3915.10

Molecular Formula

recycled polyethylene terephthalate

Recycled Polyethylene Terephthalate (R-PET) is a sustainable material made from post-consumer PET waste, such as recycled plastic bottles and containers. By reusing PET, R-PET reduces the need for virgin plastics, helping to minimize plastic waste and its environmental impact. R-PET maintains the same strength, durability, and versatility as virgin PET, making it suitable for a wide range of applications, including packaging (beverage bottles, food containers), textiles (clothing, upholstery), automotive parts, and construction materials. R-PET is fully recyclable, supporting a circular economy by encouraging the reuse of materials. It offers a cost-effective alternative to virgin PET, reducing production costs for manufacturers. Additionally, R-PET’s resistance to moisture and chemicals makes it ideal for consumer and industrial use. As demand for sustainable materials grows, R-PET is increasingly becoming a key material for companies seeking to reduce their environmental footprint while maintaining product performance and quality.

Packaging Type

1000 Kg Jumbo Bag, 1100 Kg Bag, 25 Kg Bag

Grades Covered

Post-consumer PET Bottle Bales (Premium-grade), Flakes, Food Grade Pellets, Post-consumer PET Bottle Bales, Food Grade (Granules).

Incoterms Used

Ex-Bhiwandi, Ex-Nagothane, Ex-Mumbai, FOB Los Angeles, FD Hamburg, Ex- Jeddah, FOB Shanghai

Synonym

Recycled PET, Post-consumer PET (or Post-consumer Polyester), R-PET.

Quotation Terms:

25-28 MT

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

Applications

R-PET (Recycled Polyethylene Terephthalate) is a sustainable and versatile material derived from post-consumer PET waste, widely used across various industries due to its durability, strength, and eco-friendly properties. In the packaging industry, R-PET is used for beverage bottles, food containers, and packaging films, offering an environmentally responsible alternative to virgin plastics. It is commonly found in packaging for soft drinks, water, juices, and consumer goods. In the textile sector, R-PET is converted into Polyester fibres used in clothing, sportswear, upholstery, and home textiles like carpets and curtains. Additionally, R-PET plays a key role in the automotive industry, where it is used in interior components such as door panels, seat covers, and insulation materials. The construction industry benefits from R-PET in products like insulation, roofing materials, and floor coverings, promoting energy efficiency. It is also used in consumer goods such as bags and office supplies and in agriculture for films and nets. R-PET is available in several grades, each suited to different applications. Premium-grade Post-consumer PET Bottle Bales are ideal for high-quality products like food-grade packaging, while standard Post-consumer PET Bottle Bales are used for non-food packaging and construction materials. Flakes and Food Grade Pellets are used for manufacturing textiles, automotive parts, and food-safe packaging. With its wide range of applications and grades, R-PET is a crucial material for promoting sustainability and reducing plastic waste.

Disclaimer

Recycled Polyethylene Terephthalate price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for recycled polyethylene terephthalate. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence the price of Recycled Polyethylene Terephthalate (R-PET)? +

The price of R-PET is primarily influenced by several key factors. One of the most significant is the cost of Ethylene, which is derived from crude oil and naphtha. As oil prices fluctuate, so does the cost of PET production. In addition, supply and demand dynamics play a crucial role. When industries like packaging, textiles, and construction experience higher demand for R-PET, prices tend to rise, whereas an oversupply of recycled material can lead to price reductions. Other factors affecting pricing include logistics issues, such as shipping disruptions, port congestion, or high freight rates, which can increase transportation costs. Regional market conditions—including economic growth, local regulations, and recycling infrastructure—also have an impact on price fluctuations.

How can procurement managers secure the best price for R-PET? +

Procurement managers can secure the best price for R-PET by adopting several strategies. First, staying informed about global market trends and price forecasts is essential to anticipate price movements. Long-term contracts can help lock in favorable prices and mitigate price volatility. Additionally, purchasing in bulk allows for negotiating better rates with suppliers. Diversifying suppliers across multiple regions can also offer competitive advantages, reduce reliance on a single source, and help manage risks associated with price fluctuations or supply disruptions.

How do global events affect R-PET prices? +

Global events can have a significant impact on R-PET prices. Geopolitical tensions and natural disasters can disrupt supply chains, leading to shortages and higher prices. Similarly, fluctuations in crude oil prices—a key raw material in PET production—can directly influence R-PET pricing. Economic events, such as a global recession or shifts in demand from major industries, can also drive prices up or down. For instance, a slowdown in manufacturing during an economic downturn could reduce demand for R-PET, lowering prices, while a surge in consumer demand or supply chain issues may result in price hikes. It's crucial for procurement managers to monitor these global developments to anticipate and adapt to market changes.