European recycled PET premium exceeds virgin material, hitting record high

S&P Global Platts data shows that on June 30, the premium of RPET transparent flakes relative to virgin PET in northwest Europe hit a record high, and the prices of the two materials are still polarized
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On June 30, the premium for RPET flakes relative to virgin PET was calculated at €210/t, the highest level since the launch of the PET flake price assessment in February 2008
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The previous all-time high was €160/t on 15 May 2020
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The price of virgin PET in northwest Europe was last assessed at €1,190/t on June 30, down €35/t on a week-on-week basis, the lowest level in 16 weeks
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The pressure on virgin PET prices comes from both supply and demand sides, with weak buying interest unable to improve supply
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According to sources, PET inventories have increased from the beginning of June
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Although the weather has improved in parts of Europe and some imports from China have been delayed, demand remains well below normal summer levels
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Despite reports that some buyers are looking to shift some of their purchases from R-PET to the virgin PET market, demand for R-PET transparent flakes continues to strengthen
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Reports from buyers and sellers suggest that although factories are operating as close to 100% as practically possible, July production will not be sufficient to supply all demand
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R-PET transparent sheet rose by 100 euros/ton on the day, and the final price closed at 1,400 euros/ton FD NWE
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While some sources expect R-PET supplies to improve by late summer, recyclers are sourcing post-consumer PET as more virgin PET and more bottles hit the market for the remainder of the summer There are still serious restrictions on the availability of bottles for factory use
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In the context of tight supply, post-consumer PET bottle pack prices reached a record high of €750/t FD NWE
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