LONDON (ICIS)–Millions of polyethylene
terephthalate (PET) bottle sales are lost as
mass gatherings across Europe are
cancelled, flights are grounded, and
tourism is displaced, but as society flickers
back to life the industry holds onto a glimmer
of hope.
“It is true that summer events are cancelled
and international tourism is not expected to
come back; Europeans will, however, stay home
and after lockdown period want to ‘celebrate’
life,” a producer said.
Despite the
recommendation from the European Commission
– the EU’s executive body – for member states
within the visa-free Schengen area to lift
border restrictions by 15 June, the
Staycation may remain a priority over
international holidays this summer.
Summer being the traditional time of year when
PET sales tend to peak.
The lockdowns boosted the appetite for local
material, in particular products encased in
large bottles.
PET imports were no longer a highlight,
although recent exchange rate developments may
be changing the outlook.
–
The food packaging sector also bucked the
negative pandemic trend, and this is likely to
continue to benefit the PET thermoforming
industry.
Recycling is suffering due to low-cost
virgin material, and this is causing serious
problems for R-PET while buffering sales of
PET.
–
Prices dropped but suppliers’ margins improved
over the last few months, and most recently the
value of PET has increased slightly as upstream
costs firmed.
–
FAR FROM AVERAGE
VOLUMES
“I feel that 80% of the
market sits between 70-80% of normal volume,
plus minus 10%,” a buyer said.
Amid the pockets of positivity, there continues
to be huge concern and uncertainty over the
second half of 2020.
The struggling economy and a potential second
wave of the pandemic are high on the agenda and
could easily damage PET demand further.
PET resins can be broadly classified into
bottle, fibre or film grade, named according to
the downstream applications. Bottle grade resin
is the most commonly traded form of PET resin
and it is used in bottle and container
packaging through blow moulding and
thermoforming.
Fibre grade resin goes into making polyester
fibre, while film grade resin is used in
electrical and flexible packaging applications.
PET can be compounded with glass fibre for the
production of engineering plastics.
Front page picture: PET flakes
Source: Gian
Ehrenzeller/EPA-EFE/Shutterstock
Focus article by Caroline
Murray
