Why Are PET Prices Declining

In May, PET beverage bottle and jar prices reached a recent high of almost 40 cents per pound before tumbling for several months, according to RecyclingMarkets.net data published by Resource Recycling. July prices fell 30% month-over-month from June. The price further dropped 61% month-over-month in August to about 10.3 cents per pound. Although curent prices show a slight rise to about 8.5 cents, that’s still far below the 22.8 cents per pound from a year ago.

The PET market is “way lower than it has been, but in the grand scheme of things, I don’t believe it is that low,” said Adam Gendell, director of circular ventures at The Recycling Partnership. He said “PET pricing had been astronomically high” recently and it’s important to remember that “it’s a commodity market, and weird things happen and it fluctuates.”

RecyclingMarkets.net cites factors including rising fuel costs, recession fears and oversupply for the initial spring dip. Several processing facilities also idled this summer for upgrades or time off and summer generally brings a seasonal supply-demand shift, said Steve Alexander, president and CEO of the Association of Plastics Recyclers.