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In response to my posting about shortfalls in supply of R-PET, Doug asks: "Anybody have a guess as to the importance of spiraling energy prices in driving the demand for recycled PET?" I have been too busy on landfills to dig into that question, but the industry's belief is generally that it is the demand from China that's the cause. However, conceptually, higher energy prices do help recycling in that recycling has a fixed cost of processing, which means that when virgin prices are low (due in part to low energy prices), recycling has real problems being competitive with its effectively off-spec product, and when virgin prices are high (due again in part to high energy prices), recycling can be far more competitive. Remember though that the energy benchmark for PET is natural gas and not oil. Peter _________________________ Peter Anderson, President RECYCLEWORLDS CONSULTING 4513 Vernon Blvd. Suite 15 Madison, WI 53705-4964 Ph: (608) 231-1100 Fax: (608) 233-0011 Cell: (608) 698-1314 eMail: anderson@no.address web: www.recycleworlds.net |
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