North American PET bottle resin prices surprised some market watchers by dropping an average of 1 cent per pound in May.
The price decline followed lower prices for raw materials, including paraxylene and purified terephthalic acid, according to an industry source contacted by Plastics News. PET demand — which typically increases in warmer months with higher consumption of bottled water and carbonated soft drinks — wasn't strong enough to negate lower raw material prices.
Regional PET bottle resin prices had been flat in April after moving up a total of 5 cents in February and March. Prices now are down a net of 1 cent so far in 2024.
Bottled water, the largest beverage segment in the U.S., continues to grow, but at a slower rate in recent years. However, PET and other plastics have gained in bottles for ready-to-drink tea, according to a report from Beverage Marketing Corp. Plastics accounted for more than 85 percent of tea bottles in 2022, up from just over 73 percent in 2019.