North American PET bottle resin prices fell again in January, pushing that material's streak of consecutive monthly price drops to six.
The January price decline averaged 3 cents per pound and resulted from lower feedstock costs and soft seasonal demand. Regional PET bottle resin prices had slipped a total of 10 cents per pound from August through December.
That decline wiped out price increases seen earlier in 2015 and left prices for the material down a net of 4 cents per pound for the full year. The North American PET market continues to struggle with overcapacity and reduced demand from makers of carbonated soft drinks, its largest end market.
At a recent recycling industry conference, PET market analyst Tison Keel said that low prices for virgin PET are expected to continue, putting pressure on recycled PET prices as a result.
Global PET markets are “vastly oversupplied,” with manufacturers pumping out PET beyond current demand, said Keel, who's with IHS Chemical in Houston.
“We think there needs to be some rationalization in the (virgin PET) industry,” he added. “I really think you will see a couple of units shut down in the next few years.”