David Platt

Market expectations in Europe are for a significant reduction in PET prices this month, possibly in the of €40-50 per metric ton. Other commodity resins rose throughout the region.

In July, the downward price pressure on standard recyclate in Europe eased for higher quality grades; however, prices for most lower specification material remained under pressure.

The PET market in Europe is enjoying a rare run of success with prices firming further over the last two months.

Europe's recycled resin producers managed to push through a price increase in May linked to higher raw material costs, but in June the short-lived price boost came to an end as a result of lower costs and weak demand.

European resin prices are under pressure as the costs for raw materials falls while supply far exceeds demands.

Standard recyclate producers in Europe are struggling to pass higher raw material costs to converters because of ongoing low demand and competition from low-priced imports.

Polyolefin producers initially tried to improve their profit margins in April and May. However, a combination of weak demand and price pressure from low-cost imports resulted in a further deterioration in producers’ margins.

Standard recycled resin prices have continued on an upward trend during the last two months, driven by the rising cost of virgin material and a tight supply of post-consumer scrap.

Western European standard thermoplastic prices have continued on an upward trend in the past two months due to higher feedstock costs.

Demand has improved across all recycled material types over the last two months, but still remains well below normal levels. Recycled PET is the exception, where stock replenishment by beverage bottle converters and concern about possible further price increases ahead, has led to demand recovering to levels not seen for quite a long time.

Standard thermoplastic prices have taken a sharp upturn over the last two  months due to higher feedstock costs, and, in the case of polyolefins, bottlenecks arising from shipping delays in the Red Sea.

Standard recycled plastics prices began the new year with a hike. In January, recycled PET prices increased €15-20 per metric ton, the first increase since July 2022.