Thursday, January 8, 2015

Some Estimates for Recycled PET Sales

Based on data found on the Internet, in 2013 approximately 9 million MT (metric tons) of PET (polyethylene terephthalate) polyester was produced globally.   (Most PET produced was used to make bottles.)

Also Internet data suggests that approximately 30% of produced PET bottles are recycled into producing “recycled” PET.  And, that recent market prices paid for the used PET bottles were $400 to $550 per MT for mixed-colored PET bottles and $630 to $800 for colorless PET bottles.

Recent sales prices for recycled PET from these recycled PET bottles ranged from $900 to $1,040 per MT for PET produced from mixed-colored bottles and from $1,200 to $1,350 per MT for the recycled PET produced from colorless bottles.

So, assuming that 2.7 million MT (0.30 % X 9 million MT) of colorless PET bottles were recycled (assuming only colorless bottles were recycled), recent recycled PET had an approximate average $3.5 billion market sales value (2.7 million MT X ($1,200/MT + $1,350/MT)/2)) (if all recycled PET was from colorless bottles, which was not the case).

If all the bottles were of mixed color, this average market sales value would be approximately $2.6 billion (2.7 million MT X ($900/MT + $1,040/MT)/2)).

Since the used recycled PET bottles were neither all colorless nor all colored, and the distribution of each category cannot be determined, I conclude that the recent market sales value of recycled PET from used PET bottles is in the $2.6 to $3.5 billion range.

Because the average prices paid for the used PET bottles that were recycled into PET are approximately known, the average costs of these used bottles can be estimated.  And, using this estimation, an average gross profit margin percentage range for recycled PET can be calculated.

Please email me, if you are interested in more details on the above.

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