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In February, the upward trend for standard recycled plastic prices gathered momentum across a broad front.
R-PET had the biggest price increase; producers raised the price for clear food-grade pellet and clear flake prices by €70-80/tonne and coloured flake prices by €40-50/tonne. R-LDPE natural film prices also saw a substantial increase; up by €70/tonne, mainly due to the higher cost of virgin material. R-HDPE, R-PP and R-HIPS registered more modest gains of between €10-30/tonne.
In March, standard recycled plastics prices were again higher across the board. R-PET once more led the way with price gains for clear flake material of €90/tonne. Clear food-grade pellet prices were up by €45/tonne, and coloured flake prices increased by €35/tonne.
Other highlights include R-HIPS prices rising by €50/tonne and R-LDPE natural film and translucent film prices with respective increases of €40/tonne and €30/tonne. Most other standard recycled plastic types posted gains of €10-20/tonne.
A number of factors are supporting suppliers' price push. The price of virgin material has increased sharply, prompted more enquiries from converters for recyclate, and raised the cost of base scrap material at the same time.
Demand has improved across all material types over the last two months, but still remains well below normal levels. R-PET is the exception, where stock replenishment by beverage bottle converters and concern about possible further price increases ahead, has led to demand recovering to levels not seen for quite a long time.
Recycled polyethylene terephthalate (R-PET)
In February, R-PET prices took a more decisive step in an upward direction with notations up by €50-80/tonne, depending on grade. In March, R-PET prices maintained a firm upward trend. R-PET clear flake prices increased by €90/tonne with R-PET food-grade pellet prices up by €45/tonne and coloured grade material prices rising by €35/tonne.
Several factors behind the upward price trend include the higher cost of virgin PET and scrap material, stronger order books, and stock replenishment by converters. Delays in shipments from Asia, together with the rising cost of freight due to the attacks on commercial cargoes in the Red Sea, are also playing a role.
R-PET demand from the beverages sector is reportedly as being almost back to normal levels as processors are starting to replenish stocks. Meanwhile, PET recyclers have raised run rates to meet the growing demand for recyclate.
Recycled high-density polyethylene (R-HDPE)
In February, R-HDPE producers raised prices by €10-20/tonne in a well-balanced market. Supporting factors included the rising cost of virgin material and input costs together with stock replenishment by converters. However, volume calls were still lower than would normally be expected for the time of year.
In March, R-HDPE prices once again nudged slightly higher with gains of €10/tonne over the previous month. The rising cost of virgin material and a slight improvement in demand supported the modest price rise.
Recycled low-density polyethylene (R-LDPE)
In February, R-LDPE prices increased across the board with significant hikes of up to €80/tonne for natural film and modest gains for black extrusion material. The R-LDPE sector is benefitting from the higher cost of virgin material, but on the other hand, the cost of base material is also higher. Demand edged upward, but still remains below normal levels.
R-LDPE prices maintained an upward trajectory in March. Natural film grades once again led the way with gains of €40/tonne, followed by translucent film pellets with a rise of €30/tonne and extrusion black pellets with a gain of €10/tonne. R-LDPE prices are benefitting from the upward trend for virgin material and some switching by processors to recycled material.
R-PP prices continued to rise in February with notations up by €20-30/tonne. Recyclers attempts to raise prices met with limited resistance and was supported by the rising cost of virgin material. Stock replenishment continued but at a low level.
R-PP prices nudged higher in March with black homopolymer pellets rising by €20/tonne and black copolymer pellets up by €10/tonne. Recyclers were largely unable to benefit fully from the growing interest being shown in recyclate from processors due to the soaring cost of standard PP because most recycling plants continued to operate at reduced run rates.
Recycled high-impact polystyrene (R-HIPS)
R-HIPS prices continued to rise in February supported by the higher cost of virgin material. There was more than enough material available to satisfy demand which remained at a low level.
In March, R-HIPS prices are up by a further €50/tonne over the closing levels in the previous month. R-HIPS prices benefitted from the skyrocketing cost of virgin material and a modest improvement in demand.
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