United States – An oversupply of PET in the USA and plummeting crude oil prices had a ‘devastating effect’ on pricing in the primary and recycled PET (rPET) markets in 2015, according to an analysis by American petrochemical specialist ICIS.
The midpoint price difference between virgin and rPET pellets fell from 12 cents per lb on the US east coast in January last year to just 3.5 cents by December. ‘That is a drop of 78% in the difference between the two products,’ ICIS points out.
On the US west coast, meanwhile, the decrease over the same period was 62% – from 8 cents per lb to 3 cents. Market sources have argued that 2016 will likely hold the same ‘narrow’ scenario for rPET.