Recycled polyethylene terephthalate (R-PET)
In August, clear bottle scrap prices actually fell slightly, yet R-PET clear food grade pellet prices resumed their upward trend, rising by €50/tonne on improved demand. R-PET clear flake and R-PET coloured flake prices each increased by €20/tonne.
Demand for all R-PET grades was boosted by the supply shortages for virgin PET. On the supply side, bottle scrap availability has continued to improve during the summer.
In September, R-PET prices are expected to buck the downward price trend, at least temporarily. Prices are likely to show small gains, but there is little scope to further significant price increases over the next few months. Low availability and good demand point to coloured flake prices rising at a slightly faster rate compared to clear flake and clear food-grade pellets.
Recycled low-density polyethylene (R-LDPE)
In August, R-LDPE prices declined within a range of €10-35/tonne with base material prices down significantly. Recyclers struggled to pass on the higher cost of energy and had to accept minor price concessions.
R-LDPE availability remained sufficient to meet demand despite a reduction in supply of base material. While demand eased slightly in August, it remained well in line with normal seasonal expectations.
A decline in primary LDPE material prices is expected to herald a reduction in demand for the secondary market as some processors switch from recyclate to virgin polymers.
Recycled high-density polyethylene (R-HDPE)
In August, R-HDPE blow moulding pellet prices were settled on a rollover basis, while R-HDPE injection moulding pellet prices dropped by around €20/tonne due to slightly weakening demand.
R-HDPE injection moulding demand was adversely affected by continuing weakness in the automotive sector and a slight easing in demand from the E&E industry. Base material was sufficiently available to meet the contractual obligations from recyclers.
September is likely to see a sharp downturn in R-HDPE prices despite rising energy costs. The economic downturn and declining purchasing power is putting pressure on demand for consumer goods. This is likely to adversely impact demands for recycled R-HDPE.
Recycled polypropylene (R-PP)
Lower demand and a reduction in virgin polymer prices led to a reduction in R-PP homopolymer prices of €30/tonne and a reduction in R--PP copolymer prices by €50/tonne in August.
The automotive sector continues to be a drag on R-PP demand with producers sitting on high stock levels. There was also more than sufficient base material to meet demand.
Lower virgin material prices and a demand downturn will see R-PP prices declining further in September.
Recycled high-impact polystyrene (R-HIPS)
In August, R-HIPS prices remained unchanged from the previous month on slightly weakening demand. There was a sufficient supply of virgin material available.
A decline in the cost of virgin material and a continued slide in demand will lead to R-HIPS prices falling in September.