Recycled polymer prices: downward price trend accelerates amid weak demand

The downward price trend which began late summer 2022 continued at the start of the new year. Recycled plastic prices fell in January and the price decline has accelerated this month. The low level of demand because of the economic downturn is the root cause of the downward price trend. Other contributory factors include more competitively-priced virgin material and the lower cost of plastic scrap.

Material availability remains on the low side as recyclers are reducing operating rates at their plants to avoid a supply overhang amid the weak demand. Nevertheless, there was sufficient material to meet demand across all product sectors over the last two months. Supply has improved slightly this month as several recycling lines have been brought back into operation following maintenance. Material availability of R-PET, R-PE and R-PP in particular has improved as additional capacity has back come on stream.

R-PET prices have come under the most severe downward pressure so far this year, falling by €125-150/tonne since the turn of the year. R-PP prices are down by €65-70/tonne, R-HDPE prices have fallen by €30-40/tonne and R-LDPE prices are €50/tonne lower over the same period. R-HIPS prices have fallen the least, down by just €10/tonne.

Recycled plastics prices are expected to continue falling over he next few weeks as additional supply is brought back on stream. The price slide is however expected to stabilise with processors likely to restock over the coming months.

Recycled polyethylene terephthalate (R-PET)
In January, R-PET recyclers had to make further price concessions in the face of ongoing weak demand and the falling cost of bottle scrap. R-PET clear flake food-grade pellets and clear flake prices fell by €50/tonne while coloured flake grades fell by €60/tonne.
Recyclers continued to maintain curbs on production amid the low order intake. Demand for recyclate was adversely impacted in January by the beverage bottle-making industry being in low season and processors only returning back to full operations during the second week of the month.
R-PET prices fell further during the first two weeks of February because of low demand and the falling cost of bottle scrap. R-PET clear food-grade pellets and clear flake prices fell by €90-100/tonne while coloured flake prices fell by €65-70/tonne.
R-PET demand remained hampered by the beverage bottle-making industry being in low season and also by the much lower prices for virgin PET as prices have tumbled over the last six months. 

Recycled low-density polyethylene (R-LDPE)
In January, R-LDPE recyclers were unable to hold onto price rollovers and had to concede discounts because of weak demand and prices fell between €10-20/tonne.
Demand was up slightly last month but replenishment of inventories was nowhere near as strong as it normally is at this time of year. Production controls remained amid the low demand but there was sufficient material to meet customer orders.
R-LDPE prices fell between €30-40/tonne during the first two weeks of February because of continued weak demand and improving supply. Production rates have been stepped up while demand remained flat.

Recycled high-density polyethylene (R-HDPE)
R-HDPE prices remained unchanged during the first month of the new year as a result of slightly better demand. Restocking by processors was more than expected while recyclers maintained strict production controls. There was nevertheless enough material available to fulfil customer orders.
R-HDPE prices fell by €30/tonne during the first two weeks of February due to continued demand weakness and improving supply. Processors were ordering only limited volumes due to low order intake from their customers. Material availability improved because of some recycling plants coming back on stream after maintenance turnarounds.

Recycled polypropylene (R-PP)
R-PP prices slipped back by €20-25/tonne during the first month of the new year on continued weak demand and improving supply. Many processors only restarted their plants during the second week of the month and ordering activity was similarly slow. Material availability improved as some recycling plants came back on-stream following maintenance.
In February, R-PP prices came fell by a further €50/tonne as supply continued to improve while demand remained well below normal levels. 

Recycled high-impact polystyrene (R-HIPS)
R-HIPS prices remained largely unchanged in January as recyclers kept production cutbacks in place. There was nevertheless sufficient material to fulfill order intake. Some processors only restarted operations during the second week of the month and hence recyclate order books was correspondingly low.
In February, R-HIPS prices edged almost €10/tonne lower in a fairly well-balanced market.