Standard recycled plastics prices began the new year on a more positive note. In January, the long downward trend for R-PET prices finally came to an end with prices increasing (€15-20/tonne) for the first time since July 2022. R-PET prices increased as a result of an upturn in demand as processors topped up their inventories. There were also small price increases for R-PP and R-HIPS.
R-LDPE natural film and translucent film and R-HDPE blow moulding pellet prices were mostly stable. R-LDPE black extrusion pellets and R-HDPE black injection moulding pellets prices softened slightly.
In February, the upward price trend gathered momentum with notations across all classes pointing firmly in an upward direction. The price push by suppliers was supported by a number of factors. The price of virgin material has increased sharply this month, which has prompted more enquiries from converters for recyclate, and at the same time, has raised the cost of base material for recyclers.
Demand has nudged higher across all material sectors this month but still remains well below normal levels. The R-PET sector is the exception, where stock replenishment at converters and concern about possible further price increases ahead, led to demand recovering to levels not seen for a long time. Consequently, R-PET producers were able to raise clear food-grade pellet and clear flake prices by €70-80/tonne and coloured flake prices by €40-50/tonne.
R-LDPE natural film prices also saw a substantial increase; up by €70/tonne, mainly due to the higher cost of virgin material. R-HDPE, R-PP and R-HIPS registered more modest gains of between €10-30/tonne.
Recycled polyethylene terephthalate (R-PET)
R-PET prices began the new year on a more positive note with prices rising for the first time in many months. Pices increased by €15-20/tonne, despite the stable cost of bottle scrap. Demand picked up in January as processors began to replenish stocks, although sales overall remained below what would normally be expected at the beginning of the year. Material availability was low as recyclers continued to operate their plants at low run rates. However, supply was lifted by a healthy inflow of imported material.
In February, R-PET prices have taken a more decisive step in an upward direction with notations up by €50-80/tonne depending on grade. There are several supporting factors; an increase in the cost of virgin PET and the cost of scrap material, stronger order books and stock replenishment by converters, and the delays to shipments from Asia together with the rising cost of freight due to the attacks on commercial cargoes in the Red Sea.
R-PET demand is reportedly almost back to normal levels this month. Meanwhile, European recyclers have raised their output to make up for the supply shortfall.
Recycled high-density polyethylene (R-HDPE)
In January, R-HDPE blow moulding prices remained stable while injection moulding prices fell by €5/tonne. Demand picked up at the start of the new year as processors began to restock. Recyclers kept a lid on plant operating rates to avoid a build-up of excess supply.
In February, R-HDPE producers were able to raise prices by €10-20/tonne in a well-balanced market. Supporting factors included the rising cost of virgin material and input costs together with stock replenishment by converters. However, volume calls were still lower than would normally be expected for the time of year.
Recycled low-density polyethylene (R-LDPE)
In January, R-LDPE natural film prices barely moved; translucent film prices increased by €20/tonne, while black extrusion pellet prices fell slightly. Demand improved a little as processors began stock replenishment, but overall sales remained less than would be expected for the first month of the year. Supply was kept in check as recyclers continued to operate their plants at low run rates.
In February, R-LDPE prices increased across the board with significant hikes of up to €80/tonne for natural film and modest gains for black extrusion material. The R-LDPE sector is benefitting from the higher prices for virgin material, but also faces a higher cost for base material. Demand edged a bit higher this month, but remains less than normal.
Recycled polypropylene (R-PP)
In January, R-PP recyclers were able to raise prices by €10-15/tonne because of stronger stock replenishment by processors. Recyclers continued to maintain tight production controls to facilitate a good balance between demand and supply.
R-PP prices continued to rise in February with notations up around €20-30/tonne. Recyclers' attempts to raise prices were met with limited resistance and were supported by the rising cost of virgin material. Stock replenishment continued but at a low level.
Recycled high-impact polystyrene (R-HIPS)
R-HIPS recyclers were able to raise prices by €10/tonne at the start of the new year as stock replenishment activity by processors was better than expected. Market balance was maintained as recyclers continued to keep a lid on plant run rates.
R-HIPS prices continued to rise in February, supported by the higher cost of virgin material. There was more than enough material available to satisfy demand, which remained at a low level.