Demand for recycled plastics in Europe recovered enough in February to enable recyclers of all plastics to raise prices, with recycled PET seeing the sharpest price increase.
Clear food grade pellets prices in the region rose by 100 euros ($111) per metric ton, covering the rise in scrap bottle purchase costs. Clear recycled PET food grade pellets now cost almost 400 euros ($444) per tonne more than virgin material with recycled PET flake prices now just a little less than virgin material prices.
Recycled PET remains tight with waste bottle availability in short supply. Most other recycled plastic types saw a slight improvement in availability of production scrap, mainly as a result of lower exports of plastic waste to Asia.
Brand owners continue to introduce new sustainability projects, but their growing demand for recycled PET is often unmet due to material shortages.
In February, all other recycled plastic types posted price increases, although in most cases the price increase was insufficient to cover the rise in material, energy and logistics costs.
For March European plastics recyclers once again are raising prices to compensate, at least partially, for higher material and energy costs, and for the most part, they succeeded. Recycled PET demand remains high while other recycled plastic types reported a slight upturn in order intake.
Colored recycled PET flake prices also increased in European markets in Februaryby more than the 25 euros ($27) per tonne.