R-PET Market in Germany Experienced Moderate Fluctuations in September 2024

The Recycled Polyethylene Terephthalate (R-PET) market in Germany experienced moderate fluctuations in September 2024, with nominal price variations, reflecting the market’s changing conditions. By the end of the month, the price of R-PET for light pellets on FOB – Hamburg basis settled at USD 1,310 per MT, showcasing the relative balance achieved amidst earlier market volatility.

Throughout the early weeks of September, R-PET prices held steady. This stability was primarily driven by balanced demand from sectors like packaging and textiles, which provided some support to market prices. Despite this early stability, mid-September brought a slight price decline of 1%, a trend because of the oversupply in the R-PET market. This oversupply, combined with moderate recovery in demand, played a significant role in shaping the market’s movement.

The stability observed in the R-PET market in the first half of the month was largely due to consistent demand from the packaging industry, especially in the beverage sector. However, as the month progressed, the oversupply situation worsened, fuelled by imports from European and Asian suppliers, which increased the availability of post-consumer PET materials. The excess supply of materials outpaced demand, putting downward pressure on R-PET prices and leading to the slight decline in mid-September.

Lower production costs also contributed to the overall R-PET market dynamics. Declining energy prices enabled recyclers to maintain steady production rates, even with moderate demand from key industries like packaging, textiles, and automotive. As a result, this steady output, combined with high availability of post-consumer PET materials, aggravated the oversupply scenario, preventing any significant price recovery by the end of the month.

One of the major challenges facing the R-PET market in Germany is the heavy reliance on the packaging sector for demand. While the packaging sector showed some signs of recovery, this was not enough to balance the overall market. Other sectors, such as construction, which also contribute to R-PET demand, exhibited sluggish performance, further contributing to the oversupply issue.

Meanwhile, the automotive and electronics industries, which are steady consumers of R-PET, provided some stability to the market, though their demand was insufficient to offset the excess supply. The continued imbalance between supply and demand, compounded by high inventory levels, kept prices under pressure throughout September.

Looking forward, market participants remain cautious. Without a substantial improvement in demand from sectors like packaging, textiles, and construction, R-PET prices may continue to face downward pressure. However, the automotive and electronics sectors could help stabilize the market if demand from these industries strengthens in the coming months.

In conclusion, the R-PET market in Germany experienced moderate fluctuations in September. While prices saw minor changes, the market remains heavily influenced by oversupply and moderate demand. The outlook for the rest of the year will depend on the recovery in demand and better inventory management by suppliers, particularly in balancing the excess R-PET supply.