SEATTLE (Recycling Monster): The demand for recycled polyethylene terephthalate (rPET) is predicted to remain moderate to soft during the current year. This is likely to keep recycled PET prices in the U.S. under pressure.
The fiber industry has been a traditional demand driver for U.S. rPET demand. However, the current economic headwinds have badly affected end markets of products such as textile and carpet, thus leading to weak demand throughout the current year. The economic downturn has forced several companies to either delay or limit purchase orders for higher-cost recycled resins.
Most of the recycled resin grades have been witnessing downward price pressure in the country. For instance, the spot market color-less post-consumer rPET flake and pellet prices registered decline across the U.S., mainly driven by continued demand weakness and challenges from competitive imports.
In the short-term, the demand for rPET is predicted to remain soft, despite historical peak demand for bottled beverages during summer season. The market is expected to see modest recovery over the next two years, in response to voluntary and regulatory recycled content targets.
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