In April, recycled polymer prices have continued to rise, but to a much smaller extent compared to the previous month. R-PET clear flake and food grade showed the highest increase with prices rising by €100/tonne. R-LDPE natural film prices have risen by €90/tonne. Most other classes and types saw gains of between €30-50/tonne. The sharply rising cost of primary material supported recyclers’ push for higher prices.
Higher virgin polymer prices and shortening availability also led to more converters seeking alternative supply in the form of recycled material. Recycled plastics demand was particularly robust across the consumer goods sector driven by brand owners’ sustainability programmes.
There was sufficient material across most recycled plastics classes and types in April to fully meet demand from regular customers, although it was harder to find additional volumes required to serve new customers. High-quality material was, however, in shorter supply.
This month, higher production scrap costs and higher energy prices are leading to further recycled plastic price increases across the board. Supply is mostly reasonably balanced for R-LDPE, R-HDPE and R-PP. R-PET bottle scarp remains short, although there are reports of an increase in imports from the Middle East and Africa. Recyclers are at least able to serve their regular customers properly, although additional volumes remain a challenge.
For R-HDPE, slightly declining scrap material volumes and the continuing poor availability of additives are limiting the output of tube grades. Demand could thus noticeably exceed supply in this market sector.