Lacklustre demand lingers across most classes

The price of most recycled plastics classes have continued to fall over the last two months. R-PET has seen the steepest price decline with clear flake prices down by a combined total of €160/tonne over March and April with food-grade pellets down by €100/tonne over the same period.
R-LDPE natural film grade prices have fallen by €50-60/tonne with black extrusion pellets down by €40/tonne and translucent film pellets down by €30/tonne. R-HDPE prices have softened slightly over the last two months with blow moulding grade prices falling €40/tonne and injection moulding prices €30/tonne lower over the last two months.
R-PP prices, on the other hand, have actually increased slightly; mainly because of better demand. R-HIPS prices have stabilised in a well-balanced market.
Low demand continues to characterise the market for recycled plastics with order activity well below what would normally be expected for the time of year. Only R-PP and R-HIPS has reported an upswing in sales over the last two months.
Demand weakness can be easily explained by the slowdown in European economies and weakness in key end use markets for recyclate such as construction and packaging. Recyclate is also facing growing competition from the falling cost of off-spec virgin material and competition from cheaper imported material from the Far East.
Recyclers have continued to curb production to avoid a build-up of excess stocks; yet there has been no major shortage of material reported.
In May, prices are likely to remain under pressure as a significant upturn in demand is not expected.

Recycled polyethylene terephthalate (R-PET)
R-PET prices have now fallen in every month since August 2022. In March and April, R-PET clear flake prices fell by a combined €160/tonne, R-PET clear food-grade pellet prices were down by €100/tone and coloured flake prices fell by €90/tonne over the same period.

R-PET prices have fallen because of the availability of competitively-priced imports from Vietnam and substitution by the less expensive virgin material. In addition, the cost of clear and coloured bottle scrap has fallen across Europe.

While producers continue to curb production rates supply is more than sufficient to meet demand because of the additional imports from Asia.

While seasonal demand from the beverages sector is growing, processors are increasingly turning to cheaper imports from Asia or using the virgin PET material.

In May, prices are expected to soften further as a result of continuing weak demand and competition from cheaper imported material.

Recycled low-density polyethylene (R-LDPE)
R-LDPE prices continued to drift downward in March as a result of low demand and competition from falling virgin LDPE prices. Natural film grade prices fell by €50-60/tonne with black extrusion pellets down by €40/tonne and translucent film pellets down by €30/tonne. The downward price trend continued into April, albeit at a slower pace.

Recyclers are maintaining production controls to avoid an excess stock position, yet availability of base material and recyclate still exceeds demand.

In March, the expected demand upturn failed to materialise as processors tended to buy only what was contractually required. Demand has however recovered in April, particularly for black extrusion pellets and dark film grades.

Recycled high-density polyethylene (R-HDPE)
R-HDPE prices have softened slightly over the last two months. Blow moulding grade prices fell by €40/tonne in March and have stabilised this month. Injection moulding prices dropped by €20/tonne in March and have fallen by a further €10/tonne this month in a more balance market.

Demand remains at a low level with few firm signs of a seasonal upswing over the last two months. The Easter break further dampened demand at the beginning of this month.

Recycling lines are running at reduced rates to avoid a build-up of excess stock, yet there was still more than enough material to meet demand.

Recycled polypropylene (R-PP)
R-PP prices have risen by €10-20/tonne over the last two months in a fairly balanced market. Demand has improved significantly, especially as competition from virgin imports from Asia has lessened as the price of imported material became more expensive. Recyclers have raised output in line with the higher demand and their stock levels have increased.

Recycled high-impact polystyrene (R-HIPS)
In March, R-HIPS prices increased by €10-20/tonne because of better demand and higher input costs. Prices have fallen back this month as demand has slackened. Processors began to restock in March, which boosted ordering. In April, however, demand has returned to levels far below what would normally be expected. Recyclers are maintaining production controls to avoid an excess supply position.