Europe’s R-PET markets follow a stable to softer trend in Sept; eyes on demand

European R-PET markets returned from holidays on a stable to softer note, while demand has been reported calmer than expected so far this month. Lower bottle bale prices added to the scene amid a nascent increase in the availability.

Late Aug bale prices decline in Italy

In Italy’s Flakes market, late August post-consumer bottle bale prices saw renewed reductions compared to the previous month, especially for Clear and Light blue grades. Mixed-colors bale prices, meanwhile, were slightly up.

According to market sources, post-consumer bottle bale prices in Italy dropped by around €40/ton for Clear grade and around €30/ton for Light blue material. This was the second consecutive drop for post-consumer bottle prices after a prolonged firming trend seen in the first half of 2024. As for the quantities, meanwhile, volumes increased amid better high-season consumption, albeit in a limited size.

September offers for Flakes material in Italy dropped both for Clear and Light blue grades, with the latter posting larger drops in the first half of the month. Indeed, a few suppliers applied reductions of up to €80-100/ton on Light blue prices while Clear grade deals were concluded with more limited reductions of around €30-50/ton. Flakes prices in Europe, meanwhile, moved mainly sideways in the first part of September.

Stability persists in the R-PET Pellets market

The R-PET Pellets market, meanwhile, held stable for another month in September amidst limited supply and calmer demand compared to expectations. The price range for R-PET Pellets was assessed at €1650-1750/ton FD.

Some market participants expected a firmer return for the post-holiday period in the region, both in terms of pricing and demand, considering the approaching year-end and the imminent SUP measures that will come into force in January 2025.

However, buyers were not in a hurry to purchase in September, with converters in the thermoforming sector still sticking mostly to virgin PET amid lower prices and large converters in the beverage sector continuing to secure their regular volumes.

Will buying appetite rise in Q4?

Lower than expected demand in September raised questions about whether increases can be resumed in the coming term as some suppliers had anticipated their intention to seek fresh hikes entering into the fourth quarter. Yet, it has to be seen whether buying appetite will see a revival starting from October amid possible supply concerns, especially among those buyers who do not secure R-PET on a regular basis.