Recycled polymer prices February update

In January, only PET recyclers managed to raise prices of certain R-PET products in line with the increase in energy and logistics costs. R-PP, R-HIPS and coloured blow moulding R-HDPE pellet prices fell as a result of low demand. R-LDPE and black R-HDPE injection moulding prices declined due to low demand and competition from low-priced virgin material.

In February, demand recovered sufficiently to enable recyclers of all plastic types to raise prices. R-PET saw the sharpest price increase with clear flake and food grade pellets rising by €100/tonne to hit new record highs. Price rises for most other recycled plastics types this month are barely adequate to compensate for the higher costs.

R-PET remains tight with waste bottle availability in short supply. Most other recycled plastic types saw a slight improvement in availability of production scrap, mainly as a result of lower exports of plastic waste to Asia.

Brand owners continue to introduce new sustainability projects, but their growing demand for R-PET is often unmet due to material shortages.

In March, plastics recyclers will once again attempt to pass through higher costs onto converters, and for the most part, they are likely to succeed.

Post-consumer recycled polymer prices, Western Europe, (€/tonne)

Recycled polyethylene terephthalate (R-PET) clear flake prices surged €90/tonne in January, which was slightly more than the rise in clear botte scrap purchase costs. Clear food grade R-PET pellet prices increased far less as a result of improving availability of imported virgin material. Coloured R-PET flake prices also failed to match the rise in bottle scrap purchase costs.

This month, R-PET clear flake and food grade pellets saw triple-digit price gains due to strong demand and limited availability. Coloured flake prices also increased more than the rise in bottle scrap purchase costs.

The availability of PET bottle scrap remains very limited and consequently R-PET supply remains tight. At the same time, R-PET demand continues to grow with ever more brand owners being left frustrated by a limited supply of material for new sustainability projects.

Recycled low-density polyethylene (R-LDPE) prices slipped back in January as a result of weak demand but recyclers managed to push through price increases in February to cover higher material and energy costs.

Purchase scrap supply has increased as exports of plastic waste to Asia have fallen sharply. Demand for recyclate continues to grow despite improved availability of low-priced virgin material.

Recycled high-density polyethylene (R-HDPE) prices for blow moulding remained unchanged in January while the price of black pellets for injection moulding fell in response to low demand.

In February, recyclers were able to pass through most of the increase in energy and logistics costs for blow moulding material. Injection moulding prices increased by slightly less due to competition from lower-priced virgin material. The availability of production scrap has improved while R-HDPE demand remains healthy.

Recycled polypropylene (R-PP) In January, recyclers failed in their attempts to price in higher energy costs. However, improving demand this month provided scope to partly pass on the higher energy costs to processors.

Production scrap has tightened in February but there was still sufficient material available to meet contractual obligations. Following a slow start to the year, R-PP demand picked up sharply in February. Automotive sector demand, however, remained well below what would normally be expected.

Recycled high-impact polystyrene (R-HIPS) prices remained unchanged in January. Recyclers were only able to partly recover higher costs in February due to competition from competitively-priced virgin material.

Production scrap availability has improved due to lower exports while contractual obligations were largely fulfilled. Demand picked up in February after a slow start to the year.