PET 2019: The Fifteenth International Conference
SubjectThis summer, the situation in the Russian PET market was a paradox: the World Cup in Russia, and the hot summer triggered a manifold growth in consumption of PET-bottled beverages, which led to the shortage of spot feedstock for pre-form production, while the price for polymer surged to 140 thousand rubles per ton. The market was also affected by the outage at one of the Russian PET producers and by the termination of bottling-grade PET production in Belarus.
The price increase resulted in a short-term, but significant growth of margins in PET production, which used to be quite low, and this caused the investors’ interest in construction of new capacities. There is no particular reason to believe that the price spikes like this will repeat in future. On the contrary, there is a high probability of decrease in production of preforms as a result of regulatory ban on plastic bottling for beer and soft drinks. The sword of Damocles is still there for the industry: the compromise decision to limit the per-bottle volume of plastic packaging ultimately did not suit the interests of the aluminum lobby, so the struggle continues.
Meanwhile, the waste management reform in Russia is approaching its logical conclusion. Starting from January 2019, the appointed regional operators will start their work. These resource-rich companies can become the main drivers in waste recycling, including polymer fractions. Many recycling companies are short of feedstock suitable for recycling. The cost of waste is extremely high, and the recyclers have to suffer losses. But there is hope that the commissioning of new sorting capacities by the efforts of regional operators will provide a sufficient supply of recyclable waste in the market, thus reducing the cost.
These and other important topics of the industry will be discussed during the upcoming Conferences.
Hall «Moscow» Hotel Baltschug Kempinski Moscow
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