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Standard recyclate prices have maintained an uptrend during the last two months after a slow start to the new year. There has been a modest improvement in demand as converters have started to replenish stocks in preparation for the spring season, although volume calls remain lower than would normally be expected. Higher input costs and rising prices and limited availability of standard material have further supported the upward trend for standard recyalate prices.
R-PET has posted the largest price increases; R-PET prices increased by €20-30/tonne in February and have risen by a further €20/tonne this month due mainly to the higher cost of bottle scrap.
R-HDPE prices increased by €10/tonne in February and have risen by €20/tonne this month. R-LDPE natural film prices were up by €30/tonne in February with translucent film prices climbing by €10/tonne. R-LDPE natural film prices have benefitted from the supply tightness of virgin LDPE and substitution by recyclate. This month, R-LDPE natural film prices have increased by €30/tonne to reach their highest level in two years.
R-PP and R-HIPS prices saw marginal gains in February and have risen by €10/tonne this month.
The immediate prospects for standard recyclate prices remain clouded by an uncertain outlook for demand and pricing over the coming months. Converters and recyclers across all classes report weaker order books than would be expected as springtime approaches, despite a modest upturn in volume calls this month. There is also no shortage of material as recyclers have raised production from their very low levels. Standard recyclate also faces growing competition possibly from falling standard thermoplastic prices and lower-priced imports in April.
Polyethylene terephthalate (R-PET)
R-PET producers pushed through sizeable price increases in February because of better demand and higher input costs. R-PET coloured flake and clear flake prices increased by €30/tonne with clear food-grade pellet prices up by €20/tonne. Volume calls continued to recover as converters topped up their inventories.
R-PET prices have continued to rise in March but by slightly less than in the previous month. Clear food-grade pellet and clear flake prices increased by €20/tonne, which matched the increase in input costs. Coloured flake prices increased by only €10/tonne because of disappointing demand.
While there was some improvement in volume calls as buyers prepared for the spring season, overall demand remained below normal levels. Recyclers stepped up production levels as stocks were ran down.
Recycled high-density polyethylene (R-HDPE)
R-HDPE prices moved in an upward direction in February with gains of around €10/tonne. There was a small upturn in demand as converters continued to top up their inventories. Plant operating rates were adjusted upwards slightly in response to the improved demand picture.
In March, recyclers were able to raise R-HDPE prices once again because of a slight upturn in seasonal demand. Coloured blow moulding and black injection moulding material prices each increased by €15-20/tonne.
Recycled low-density polyethylene (R-LDPE)
In February, R-LDPE natural film grade prices increased by €25-30/tonne, translucent film pellet prices increased by €10/tonne with black extrusion material prices unchanged from the previous month. Standard LDPE supply shortages have led to some substitution by R-LDPE natural film. Volume calls were improved but still fell below normal levels. Some recyclers raised plant operating rates in response to the better demand.
In March, R-LDPE film grade prices climbed to their highest level in almost two years with natural film and translucent film material prices each up by €30/tonne over the previous month. Prices were supported by a slight improvement in demand, limited availability of standard LDPE and higher input costs. Producers responded to the better demand by raising plant operating rates, but these remained well below normal levels.
Recycled polypropylene (R-PP)
In February, R-PP black homopolymer prices were largely unchanged from the previous month while black copolymer prices edged €5-10/tonne higher at the top end of the price range. Demand remained much too subdued for recyclers to enforce higher price premiums. Plant operating rates were maintained at a reduced rate.
In March, R-PP producers were only able to raise prices by €10/tonne, which fell below an increase in the cost of raw materials. Volume calls from major end use sectors such as automotive and consumer goods was too low to enable producers to raise prices any further. Plant operating rates remained at a low level.
Recycled high-impact polystyrene (R-HIPS)
In February, recyclers raised prices by €10/tonne as converters began to replenish stocks. R-HIPS producers maintained plant run rates at a low level.
In March, R-HIPS prices increased once again by €10/tonne due to the rising cost of standard material and higher input costs. However, the weak demand picture meant that recyclers were unbale to pass through all of the cost rise. Packaging was the only sector to show any real signs of an upturn.