The latest pricing charts can be accessed here.
In May, standard recyclate producers struggled to pass through higher raw material costs onto converters because of ongoing low demand and competition from low-priced imports. In June however, the short-lived price upturn came to an end as a result of lower costs and weak demand.
The R-PET sector has seen the largest price increases, but input costs increased at a faster rate in May, thus squeezing recyclers’ profit margins. R-PET clear flake prices increased by €40/tonne last month, R-PET clear food-grade pellet prices increased by €50/tonne with coloured flake prices up by just €10/tonne. R-PET benefitted from an upturn in volume calls and the higher cost of virgin material.
This month, R-PET clear food-grade pellet prices have fallen by €30/tonne with coloured flake prices declining by €10/tonne due largely to the lower cost of bottle scrap. Clear flake prices have increased slightly.
In May, few other recyclate classes registered a price upturn; with prices for most classes being rolled over. R-LDPE natural film prices saw the biggest gains with prices up €40/tonne. In most cases, the price rollovers and small price increases for all classes have been insufficient to cover the increased purchasing cost, and hence recyclers’ profit margins are squeezed further.
In June, the prices for R-LDPE, R-PP, R-HIPS and R-HDPE injection moulding have fallen, only R-HDPE blow moulding prices have remained unchanged over the previous month.
While volume calls across all standard recyclate types have picked up slightly over the last two months, demand remains well below normal levels with no sign of a pickup in sight. Recyclers continue to run their plants at reduced rates to match the low level of demand.
Recycled polyethylene terephthalate (R-PET)
In May, R-PET clear food-grade pellet and clear flake prices increased by €40-50/tonne because of an increase in the cost of bottle scarp and good seasonal demand.
Coloured flake prices were up by €5-10/tonne with just a modest rise in coloured bottle scrap costs. An increase in cheaper imports of recyclate from Asia meant that producers were mostly unable to pass through the cost increase in full.
The upswing in R-PET prices appears to be at an end, at least for the time being. In June, only clear flake prices have increased slightly, coloured and food-grade pellet prices fell by €10/tonne and €30/tonne, respectively. Recyclers had to factor in a reduction of €35/tonne for clear bottle scrap and a €20/tonne reduction for coloured bottle scrap.
Beverage sector demand is running at normal levels, but may now have peaked for the summer season. Recycling plants continued to operate at normal levels.
Recycled high-density polyethylene (R-HDPE)
In May, R-HDPE producers were largely unbale to pass through the price increases they called for due to growing competition from low-priced imports of virgin material. Producers maintained production curbs but there was still sufficient material to meet contractual obligations.
In June, R-HDPE blow moulding prices were rolled over; injection moulding grade prices fell by €10/tonne. For the injection moulding material, prices remain under pressure from lower costs and weak demand. Plants continued to operate at reduced rates.
Volume calls by the construction and automotive sectors remained low.
Recycled low-density polyethylene (R-LDPE)
R-LDPE prices continued to gain ground in May with the price of natural film up by €40/tonne and translucent film prices rising by €20/tonne. These price rises just about covered an increase in the cost of scrap. There was more than sufficient material to cover demand despite ongoing production curbs. Volume calls remained at a low level.
In June, R-LDPE prices fell as a result of lower costs and meagre demand. Natural film prices were down by €25-30/tonne with translucent film prices falling by €20/tonne compared to the previous month. Recyclers adjusted output to the lower demand.
There are few signs of a demand stimuli for the market.
Recycled polypropylene (R-PP)
R-PP prices nudged higher in May, rising by €10-20/tonne on the back of higher raw material costs. Recyclers continued to produce just enough material to meet the low level of demand. The only positive demand push appeared to come from the horticulture market.
In June, R-PP prices fell due to low demand and pressure from the falling cost of off-spec material. Recyclers maintained low plant operating rates with no sign of any end use stimuli to demand. Consequently, further downward price pressure is likely over the summer.
Recycled high-impact polystyrene (R-HIPS)
In May, R-HIPS price movements showed a wide disparity; some recyclers offered a discount while others raised prices in line with higher purchase costs. On balance, black R-HIPS pellet prices gained around €5-10/tonne. Recyclers reduced their production rates in line with the low level of volume calls.
In June, black R-HIPS pellet prices fell by €30/tonne as a result of the lower cost of virgin material and very low demand. R-HIPS prices are expected to remain under pressure with neither an upturn in virgin material prices nor improved demand in sight.
The latest pricing charts can be accessed here.