Metallurgy / Chemicals / Rubber & Plastics

The increase in demand for R-PET in Asia will continue to exceed the supply of various grades of R-PET flakes and pellets, because the continued tight supply of post-consumer bottle (PCB) raw materials prevents manufacturers from operating at full capacity.

u3000u3000 Even at the peak of the recovery of the new crown delta virus, because companies adhere to their own sustainable development goals, the demand for bottle-grade R-PET in most parts of Asia has been stable.

u3000u3000 With the relaxation of the epidemic-related movement restrictions, the demand for bottled R-PET has further increased. The reopening of some travel channels has stimulated the consumption of beverage bottles by local and international tourists.

u3000u3000 The demand for fiber-grade and film-grade R-PET pellets has also been boosted recently, as end markets including the textile industries of Thailand, Indonesia, and Vietnam have resumed business after closing down during the severe epidemic.

u3000u3000 The seasonal demand for winter clothing in Northeast Asia and the summer clothing in Southeast Asia and Australia has strengthened people's desire to buy fiber-grade R-PET flakes and pellets.

u3000u3000 Due to the optimistic demand outlook, it is difficult for manufacturers to obtain enough raw materials in their domestic markets to meet the demand.

u3000u3000 In Southeast Asia, Thailand, Indonesia, and Malaysia continue to face extreme shortages of packaging materials due to low waste supply levels and different recycled polymer sectors competing for quantity in the spot market.

u3000u3000 Due to the current rainy season, waste collection in Southeast Asia is restricted, especially in Thailand.

u3000u3000 Due to the increase in operating costs, the profit margin of R-PET producers is still very low, which is consistent with the increased bid to ensure sufficient packaging materials.

u3000u3000 Manufacturers either choose to slightly increase their quotations or do not pass the cost on to downstream buyers in order to retain the buying interest of old customers.

u3000u3000Asia's outbound trade of R-PET pellets has been very small, because buyers in overseas markets, including the United States and Europe, refused to take delivery from Asia due to tight container supply and high freight rates.