Polymers – U.S. R-PET Market Stability in August 2024 Despite Minor Fluctuations 09-09-2024

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U.S. R-PET Market Stability in August 2024 Despite Minor Fluctuations

As of the end of August 2024, the U.S. Recycled Polyethylene Terephthalate (R-PET) market remained stable, with prices holding firm at USD 1,250 per metric ton (MT) for clear flakes on an FOB (Free on Board) Los Angeles basis. This price stability reflects a balanced interaction between supply and demand that characterized the market throughout the month.

In late July 2024, the R-PET market experienced a modest 1% price increase, moving from USD 1,240 to USD 1,250 per MT. This minor uptick was primarily driven by a temporary surge in demand, particularly from industries such as food packaging and bottling, which have increasingly adopted R-PET due to its environmental benefits. Polymers

Following this brief rise, the market quickly regained equilibrium, with prices remaining unchanged through August, indicating the resilience of the market.

Sustained Demand for R-PET in 2024

Throughout 2024, the U.S. R-PET market has exhibited strong resilience and consistency. Demand for R-PET has been bolstered by industries that prioritize sustainability, particularly in the context of meeting corporate and environmental goals. These industries, especially those in packaging and bottling, have steadily increased their reliance on recycled materials like R-PET to promote eco-friendly production practices.

The consistent use of R-PET across these sectors has been a key factor in maintaining stable prices. Polymers

Furthermore, manufacturers have demonstrated effective management of supply chains and inventory levels. By aligning production with fluctuating demand, they have been able to prevent any significant price swings that could have disrupted market stability. This careful balancing act has enabled the U.S. R-PET market to remain steady despite occasional fluctuations in demand. Polymers

Price Outlook: September to December 2024

Looking ahead, industry analysts from ChemAnalyst forecast continued price stability in the U.S. R-PET market. They expect the price of clear flakes to hover around USD 1,280 per MT through September, with only slight variations. In October, however, the market is expected to experience a more noticeable increase in price, with projections indicating a rise of approximately 2.4%. This forecasted price jump is largely attributed to heightened demand from the packaging industry, which typically experiences a significant uptick in activity as the year-end approaches. Polymers

During this period, manufacturers often ramp up production to meet increased consumer demand, particularly in sectors such as food and beverage packaging that rely heavily on R-PET for sustainable packaging solutions.

Despite the anticipated price increase in October, market conditions may see some adjustments in November and December. These fluctuations, often referred to as seasonal price corrections, are common as consumption patterns shift towards the end of the year. While some minor price declines could occur, they are expected to be temporary. By January 2025, the market is forecast to stabilize once again, with prices leveling out after the seasonal shifts have passed. Polymers

The Importance of R-PET in Sustainability Efforts

The U.S. R-PET market’s ability to maintain overall stability, even in the face of occasional fluctuations, underscores the critical role it plays in both recycling efforts and broader sustainability initiatives.

The National Recycling Coalition (NRC) Policy Committee has released a draft policy titled “Chemical Recycling Is Not Recycling” and is inviting feedback

The policy asserts that non-mechanical methods, which convert end-of-life plastics into fuels or feedstocks, do not align with NRC’s recycling definition. The NRC opposes the term “advanced recycling” for these processes, calling it misleading and inaccurate.

The policy also rejects classifying non-mechanical recycling as manufacturing while mechanical recycling is not, and questions the use of non-mechanical methods as a solution for plastic pollution. Polymers

Instead, the NRC supports policies that clearly differentiate between recycling (mechanical or non-mechanical) and solid waste management.

Chemical recycling has been a debated issue, raising concerns about its role in circular economy practices and appropriate regulation. The draft was presented to the NRC board on June 28, which has approved its distribution to state recycling organizations and NRC members for further input.Polymers

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