European rPET prices reach record highs!

Prices for both clear bottles and post-consumer flakes in Europe reached "record highs" in January 2022 due to the impact of Covid-19 and a tight supply chain for recycled PET, according to ICIS
.

Compared with December 2021, the price of post-consumer plastic bottles in Northwest Europe increased by more than 200 euros per ton in January this year, and the price of bottle flakes increased by 150 euros per ton, ICIS said
.
Currently, the price of colorless flakes is between EUR 1,600 and EUR 1,700 per ton
.
There may be some higher prices, but ICIS believes that these transactions cannot be proved to be real, so they are not of reference significance for the time being
.

The price increase in North West Europe is in line with that in South, Central and East Europe
.
This is the highest price ICIS has observed since it began reporting the data in 2006
.

There are several factors that currently influence the supply, demand and price of rPET:

01

EU Restriction of Plastic Products Directive (EU) 2019/904

The European Union requires that from 2025, PET plastic bottles should contain at least 25% recycled plastic, and by 2030, this content should reach at least 30%
.
This means that European demand for post-consumer bottle flakes is high, but supply is somewhat more volatile
.

02

Global Supply Chain Crisis

The global supply chain crisis has been exacerbated by a series of irresistible factors such as production disruptions, extreme weather, shipping delays, and container shortages caused by COVID-19
.

In an interview with Packaging Europe last year, Renato Zelcher, president of the European Packaging Council, said: “More than 90% of businesses in all EU member states have been negatively affected by this situation
.
Improvements, but supply is still volatile and some companies have had to stop production due to lack of material or to avoid price increases
.
"

03

High-quality recycled PET application range

In December 2021, key players in the European beverage industry issued a statement calling on the European Commission to introduce a mandatory "priority refusal" policy to encourage the establishment of a closed loop bottle-to-bottle recycling system
.
High-quality food-grade recycled PET is being used in non-food contact products such as toys and clothing, the organizer said, which it believes will reduce recycling and threaten the recycling goals of the beverage industry
.

Existing EU legislation, such as the Single Use Packaging Directive (SUPD), has also been criticised for a lack of coordination among member states
.
Some countries have failed to establish clear national rules on single-use plastics, and uneven rollout could lead to fragmentation of the single market, the European Commission for Harmonization of Trade noted
.
As a result, companies and governments alike are facing increasing pressure and scrutiny as regulations on packaging types are tightened, and it is believed that there is currently not enough support to actually achieve the goals
.

Because supply chain changes can be permanent, it is difficult to predict how long these influences will last
.
ICIS acknowledges that many companies are taking a cautious "wait and see" response, a change that may not become apparent until the second quarter of 2022
.

ICIS is a trade name of LexisNexis® Risk Solutions Group, a subsidiary of the UK-based RELX Group
.
ICIS valuations are derived from data collected from various sectors in each market, including consumers, producers, traders and distributors, etc.
Confirmed transactions are verified by buyers and sellers and are the basis for valuations
.