R-PET price premium over virgin widens to new record high

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 clear food grade pellets rising by €100/tonne, covering in full the rise in bottle scrap purchase costs. Clear R-PET food grade pellets prices now cost almost €400/tonne more than virgin material with clear R-PET flake prices now just slightly less than virgin material prices.

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 February, all other recycled plastic types posted price increases, although in most cases the price increase was insufficient to cover the rise in material, energy and logistics costs.

This month, plastics recyclers once again are raising prices to compensate, at least partially, for higher material and energy costs, and for the most part, they succeeded. R-PET demand remains high while other recycled plastic types reported a slight upturn in order intake.

Recycled polyethylene terephthalate (R-PET)

In February, R-PET clear flake and food grade pellets saw triple-digit price gains due to strong demand and limited availability. The €100/tonne price hike represents a sizeable margin gain above the €44/tonne rise in clear bottle scrap purchase costs. Coloured flake prices also increased by more than the €25/tonne rise in mixed bottle scrap purchase costs, which increased by €25/tonne.

PET bottle scrap availability 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.

In March, R-PET recyclers are implementing further price increases amid continued strong demand and tight availability. Food-grade material is now priced well above virgin material.

Recycled low-density polyethylene (R-LDPE)

LDPE 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.

In March, recyclers called for further price rises to cover their cost increases. 

Recycled high-density polyethylene (R-HDPE)

In February, recyclers were able to pass through a portion 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.

In March, recyclers attempted to pass through the remainder of the cost increase which they were unable to recover in February.

Recycled polypropylene (R-PP)

R-PP prices increased €20-25/tonne in February following from a rollover in the previous month. Production scrap supply tightened but there was still sufficient material available to meet contractual obligations. Following a slow start to the year, R-PP demand picked up sharply, but automotive sector demand remained well below what would normally be expected.

With demand improving, recyclers have pushed for higher prices in March to cover rising costs.

Recycled high-impact polystyrene (R-HIPS)

In February, recyclers were only able to partly recover higher costs due to competition from 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.

In March, with demand returning to more normal levels and costs rising, recyclers pushed through further price increases.