U.S. R-PET market experiences stable surge in April 2024

Texas (USA): In recent weeks, the United States has observed significant growth and firmness in its Recycled Polyethylene Terephthalate (R-PET) market. This stability is an indication of the industry's strength amidst a period of substantial economic shifts. As March concluded, the prices of R-PET remained steady. Industry analysts pointed to a market that has reached equilibrium, the calm before the storm, perhaps, as the prices sat at a consistent rate without a hint of change.

This suggested a fine balance between supply and demand—where neither buyers nor sellers had the upper hand, a rare occurrence in the volatile recycling industry. Into the early days of April, the R-PET market maintained its price stability. This was indicative of a market that had found its footing after turbulent times. Despite modest demand, particularly from the textiles and bottle manufacturing sectors, prices remained flat, reflecting a consistent supply level.

As we moved into the second week of April, the R-PET landscape began to shift. The whispers of change came with a 3% rise in price, driven by external forces rather than a surge in demand. This increase was attributed to the knock-on effects of the crude oil market and escalating freight charges, forcing suppliers to recalibrate their pricing structures. Market participants were keen to point out that the demand for R-PET was not as vigorous as one might have anticipated, despite the increase in price.

This increase caused ripples of concern among downstream food and beverage companies, which were then faced with tough decisions about their purchasing strategies. The U.S. consumer price index and the Manufacturing PMI's positive trajectory hinted at an expanding economic backdrop, yet the direct impact on R-PET demand remained modest. The robust performance of these economic indicators was a beacon of optimism for many, even if it didn’t immediately translate into heightened R-PET demand.

Supply chain challenges, such as port congestion, have also been a significant factor. While supply levels of R-PET remained adequate to meet demand, logistical hurdles imposed by consistent material influxes demanded attention and quick adaptation.

According to market analyses by ChemAnalyst, as of the third week of April, the R-PET market took another turn with the price inching upwards to USD 1,200 per metric ton for clear flakes grade on FOB – Los Angeles basis. This latest price point is the culmination of the commodity’s journey through market stability, logistical challenges, and external economic pressures. It's evident that the R-PET market, while stable at its core, is susceptible to the ebbs and flows of broader economic forces. The coming months will be crucial to observe as the industry navigates the delicate balance between maintaining equilibrium and responding to the unpredictable nature of global markets.