First signs of price downturn as demand falters

In July, recyclers of most plastic material types managed to raise prices in view of a continuation of good demand. Not all recyclers, however, managed to pass through in full the higher energy and base material costs.
R-PET coloured flake posted a triple-digit price increase as strong demand, particularly from Eastern European converters, outstripped availability. Recyclers of R-LPDE black extrusion pellet also achieved a large price increase with settlements rising by €50/tonne as a result of strong demand for construction applications.
Surprisingly, clear food grade R-PET prices failed to rise for the first time since January 2021. R-HDPE black injection moulding pellets and R-PP prices also rolled over from the previous month. All other recycled plastic types registered price gains in the order of €10-30/tonne during July.
In August, only R-PET materials registered price gains. R-PET clear food grade pellets resumed an upward trend with notations settling €50/tonne above the previous month. R-PET clear flake and R-PET coloured flake grades gained around €20/tonne over the same period.
Several other recycled plastics grade prices declined in August. R-HDPE black injection moulding pellet prices fell €20/tonne, R-LDPE prices fell between €15-40/tonne and R-PP prices were down €20-50/tonne. R-HDPE coloured blow moulding pellets and R-HIPS prices remained unchanged compared to the previous month.
The price softening trend in August was generally the result of slowing demand, especially from the construction sector. Meanwhile, supply has remained generally satisfactory. Higher price discounts are widely anticipated for September.

Recycled polyethylene terephthalate (R-PET)
In July, R-PET price movements varied widely between the different grades. R-PET coloured flake prices climbed by €100/tonne on the back of rising mixed and coloured bottle scrap prices and limited supply. R-PET clear flake prices increased by €30/tonne, which was just less than a €40/tonne increase in bottle scrap prices. R-PET clear food grade pellets failed to rise for the first time in many months, despite rising bottle scrap costs.
In August, clear bottle scrap prices actually fell slightly, yet R-PET clear food grade pellet prices resumed their upward trend, rising by €50/tonne on improved demand. R-PET clear flake and R-PET coloured flake prices each increased by €20/tonne. Demand for all R-PET grades was boosted by the supply shortages for virgin PET. On the supply side, bottle scrap availability has continued to improve during the summer.

Recycled low-density polyethylene (R-LDPE)
In July, supply shortages and strong demand led to an increase in R-LDPE prices ranging from €30-50/tonne, which represented a premium above the higher cost base.
Supply was restrained by holiday shutdowns and maintenance programmes at recycling plants. Materials based on commercial mixed films and single variety grades saw the strongest demand.
In August, R-LDPE prices declined within a range of €10-35/tonne with base material prices down significantly. Material availability remained sufficient while seasonal demand eased slightly, yet remained well in line with expectations.

Recycled high-density polyethylene (R-HDPE)
In July, R-HDPE coloured blow moulding pellet prices increased by €20/tonne while the cost of black pellets for injection moulding remained unchanged from the previous month.
In general, material was sufficiently available to fulfil contractual obligations, with few exceptions. Demand for R-HDPE blow moulding material was well supported by the growing number of sustainability programmes by consumer goods manufacturers.
In August, R-HDPE blow moulding pellet prices were settled on a rollover basis, while R-HDPE injection moulding pellet prices dropped by around €20/tonne due to slightly weakening demand.

Recycled polypropylene (R-PP)
In July, R-PP homopolymer and R-PP copolymer prices remained stable in a largely balanced market.
There was sufficient material available to meet order requests from both current and new customers. R-PP demand from the automotive sector was fairly robust during the summer.
In August, R-PP homopolymer prices fell by €30/tonne while R-PP copolymer prices were down by €50/tonne largely as a result of a demand downturn from the automotive sector.

Recycled high-impact polystyrene (R-HIPS)
In July, recyclers increased the price of R-HIPS by around €30/tonne as a result of rising virgin material costs and strong demand. The very high cost of standard HIPS increased the attractiveness of recycled material to converters.
In August, R-HIPS prices remained unchanged from the previous month on slightly weakening demand.