The latest pricing charts can be accessed here.
Polyethylene terephthalate (R-PET)
In December, R-PET prices continued to slide with clear flake and clear food-grade pellet prices down by €10/tonne and coloured flake prices down by €15/tonne. The underlying price drivers included poor demand, good supply and lower cost of bottle scrap. Recyclers’ stock levels have increased over recent months because of the low demand. Many plants shut down early for Christmas and planned to take an extended holiday. Demand was at a low point for the year as processors kept an eye on stock levels for balance sheet reasons.
In January, R-PET recyclers passed through the higher cost of bottle scrap with price increases of €15-20/tonne. While overall demand still remains disappointingly low, there was a pickup in volume calls as many converters started to rebuild their inventories. There was more than enough material in stock to meet the demand.
Recycled high-density polyethylene (R-HDPE)
R-HDPE prices stabilised in December despite processors’ demands for a price reduction. Demand reached a low level for the year; processors bought only minimal volumes as they sought to reduce inventories for balance sheet reasons. Many recyclers shut down plants early for an extended holiday given that stock levels were starting to grow and volume calls were so low.
At the start of the New Year, recyclers came under pressure from buyers to reduce prices, but most sellers held out for a price rollover. While volume calls remained low, there was a notable upturn in demand as converters began to rebuild stocks. Strict production controls by recyclers, maintained supply at a low level.
Recycled low-density polyethylene (R-LDPE)
R-LDPE prices softened further in December as recyclers sought to offload stocks before year-end. Demand reached its lowest point for the year in the short Christmas month as processors bought just enough material for their immediate production needs. Many recyclers closed their plants early for an extended holiday in view of the low order intake.
Recyclers attempted to raise prices at the start of the New Year but eventually had to settle for a rollover because of low demand and competition from virgin material. Initial restocking activities led to a modest demand stimuli, but underlying demand remained low. Input material costs were higher and are forcing recyclers to keep plant operating rates to a minimum.
Recycled polypropylene (R-PP)
R-PP prices fell further in December with notations down by €10/tonne in a fairly well-balanced market. The price downturn was influenced by the falling cost of standard material and very low demand. Processors bought only enough material to fulfil current production needs with a close eye on their end-of-year stock position. In view of the low demand, recyclers either closed their plants early for an extended holiday or undertook plant maintenance.
R-PP prices were largely unchanged in January despite attempts by converters to seek concessions. Demand remained weak, although there was some stock rebuilding taking place. There was more than enough material available to meet demand.
Recycled high-impact polystyrene (R-HIPS)
R-HIPS prices stabilised in December in a well-balance market. Processors bought only enough material to fulfil current production needs with a close eye on their end-of-year stock position. In view of the low demand, recyclers either closed their plants early for an extended holiday or undertook plant maintenance.
R-HIPS prices once again remained unchanged at the beginning of the New Year, even though demand remained low. Recyclers had sufficient material despite some plants only returning to work during the second week of January.
The latest pricing charts can be accessed here.