Recyclate prices drift down on weak demand | Sustainable Plastics

The latest pricing charts can be accessed here.

Standard recyclate prices were mostly unchanged over the last two months in quite thin trading, with very minor price movements either way. Demand for standard recyclate has remained well below normal during September and October. Recyclers have continued to run their plants at reduced rates to prevent stocks from rising. Recyclers are expected to continue running their production lines at a very low level for the rest of the year in order to keep stocks low for year-end balance sheet purposes.

In September, R-PET coloured flake prices were unchanged from the previous month while clear food-grade pellet and clear flake prices increased €10/tonne. This month, R-PET prices have slipped €10/tonne influenced by lower demand from the beverages sector and the falling cost of virgin material.

In September, R-LDPE black extrusion pellet prices were again unchanged; natural film and translucent film prices fell slightly on low demand. This month, R-LDPE natural film prices are largely unchanged from September while translucent film pellets and black extrusion pellet prices have softened slightly.

R-HDPE coloured blow moulding prices were again unchanged in September with black injection moulding up €10/tonne. This month, R-HDPE coloured blow moulding prices remain unchanged; black injection moulding pellet prices have fallen slightly.

R-PP prices slipped last month largely because demand had failed to recover after the summer holidays. In October, R-PP black copolymer pellet prices are largely unchanged month-on-month while black homopolymer pellet prices have softened slightly.

R-HIPS prices fell €20/tonne in September and have fallen by a similar amount this month.

Recycled polyethylene terephthalate (R-PET)

In September, R-PET clear food-grade pellet and clear flake prices increased by €5-10/tonne while coloured flake prices were largely rolled over from the previous month. The onset of autumn and cooler weather marks the end of the beverage bottle-making season together with the consequent reduction in demand. However, an increase in the cost of clear and coloured bottle scrap pressured recyclers into passing on at least some of the cost increase onto processors.

In October, R-PET clear food-grade pellet and R-PET clear flake prices softened by €10/tonne month-on-month because of lower demand and a sharp drop in the cost of clear bottle scrap. R-PET producers were also obliged to reduce the cost of coloured flake by €10/tonne because of low demand, even though coloured bottle scrap prices have increased. R-PET recyclers are sitting on plentiful stocks which they will aim to reduce by year end.

Recycled high-density polyethylene (R-HDPE)

In September, the cost of R-HDPE coloured blow moulding material was largely unchanged over the previous month while black injection moulding pellet prices increased slightly. Demand for blow moulding material failed to recover as expected after the summer break while injection moulding demand picked up slightly.

This month, R-HDPE coloured blow moulding material prices once again remain unchanged; black injection moulding pellet prices have fallen slightly. Demand is weak but stable across most end use sectors. Recyclers continue to curtail plant operating rates with an eye on stock control as year-end approaches.

Recycled low-density polyethylene (R-LDPE)

In September, R-LDPE demand failed to recover as expected after the summer holidays and suppliers were forced to grant small price discounts. R-LDPE natural film and translucent film prices dropped by €10/tonne from August with black extrusion material prices mostly unchanged. Recyclers reduced their operating rates even further to prevent an increase in stock levels.

This month, R-LDPE natural film prices are mostly unchanged from September while translucent film pellets and black extrusion pellet prices have softened slightly. Demand remained weak across most end use sectors; producers have kept plant run rates at a low level to avoid excess stock.

Recycled polypropylene (R-PP)

In September, recyclers adjusted R-PP prices downward by at least €10/tonne because demand failed to improve as expected following the summer holidays. Producers trimmed operating rates even further to prevent excess stocks.

In October, R-PP black copolymer pellet prices are largely unchanged month-on-month while black homopolymer pellet prices have softened slightly. Demand remained low and there is growing competition from the lower cost of virgin material.

Recycled high-impact polystyrene (R-HIPS)

R-HIPS producers reduced prices by €20/tonne last month as demand failed to recover as expected after the summer holidays. Plant operating rates have been trimmed further in order to prevent an increase in stock levels.

In October, black R-HIPS pellet prices are down once again by €20/tonne compared to the previous month because of low demand and growing competition from the falling cost of virgin material.

The latest pricing charts can be accessed here.

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