Growing Demand for Recycled PET Fuels Market Dynamics and Sustainability Efforts

PET

22 Oct 20242 Min ReadDaily Market Report

Polymer prices showed minor fluctuations, with PET, PP, and HDPE holding steady. The supply chain saw notable market movements, including shutdowns in China’s PP units and LG Chem’s competitive PVC pricing for November shipments.

Key Highlights

PET, PP, and HDPE prices remained relatively stable, with slight fluctuations across various grades.
PET demand is increasing due to major brands promising to use 50% recycled plastic by 2030.
Supply chain activities such as LG Chem's PVC offers and shutdowns at Fujian Gulei’s PP Unit impact global market dynamics.

Current Polymer Price Overview for Different Grades

PET 81-84: Rs. 91/kg Ex Bhiwandi/Mundra.
PP Raffia: Rs. 92/kg levels Ex Godown.
PP Film: Rs. 100/kg levels Ex Godown.
PPCP: Rs. 99/kg levels Ex Godown.
PP Lamination: Rs. 102/kg levels Ex Godown.
LLDPE (-1): Rs. 86.5/kg Ex Mundra/Bhiwandi.
LDPE prices are around (±0) Rs. 116/kg Ex Mundra/Bhiwandi.
HDPE PE100 natural (±0): Rs. 90/kg Ex Mundra/Bhiwandi.
HDPE PE100 black (±0): Rs. 91/kg Ex Mundra/Bhiwandi.
HDPE HM (±0): Rs. 90/kg Ex Mundra/Bhiwandi.
HD Blow Molding (±0): Rs. 91/kg Ex Mundra/Bhiwandi.
Low K (P700): Rs. 81.00 Ex Nhava Sheva/Mundra.
Low K (B57): Rs. 85.50 Ex Nhava Sheva/Mundra.
LG LS100H: Rs. 76.55 Ex Mundra/Bhiwandi.

Petroleum Demand and Supply

PET demand is being significantly driven by major brands that are setting ambitious targets for incorporating recycled plastic content into their packaging. Notably, companies such as Coca-Cola and PepsiCo have committed to achieving 50% recycled plastic content by 2030. This growing demand is further fueled by heightened consumer awareness and concerns regarding plastic pollution. As a result, there is a marked expansion in the market for recycled PET (rPET), highlighting the interplay between corporate sustainability initiatives and consumer expectations in shaping industry trends.

Petroleum News: Developments in the Global Polymer Supply Chain

Shell is aiming to replace old steam-driven turbines with electric motors at its Cracker, located in Moerdijk, the Netherlands. LG Chem from Korea offered its PVC LS100H/LS100 (K67) at US$ 800/MT, CIF Nhava Sheva/Chennai/Mundra port on an LC at sight basis for November 2024 shipment. Formosa Plastics Corp (FPC) has restarted its No. 2 Ethylene Vinyl Acetate (EVA) Plant after maintenance work. The plant is located in Mailiao, Taiwan. Fujian Gulei Petrochemical has shut its Polypropylene (PP) Unit on 21st October 2024 for maintenance work. The unit is located in Zhangzhou, Fujian, China.

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Expert Opinion on Polymer Market Trends

It is expected that as the demand for rPET continues to grow, addressing the supply-demand gap will be crucial. Improving recycling infrastructure, reducing contamination, and promoting sustainable practices will be essential for meeting the targets set by major brands and mitigating the plastic pollution crisis.