Recycled polymer prices in Europe continue downward path

The downward price trend for recycled plastics in Europe, which began late summer 2022, has continued at the start of the new year.

Recycled plastic prices fell in January and the price decline accelerated this month. The low level of demand because of the economic downturn is the root cause of the downward price trend. Other contributory factors include more competitively-priced virgin material and the lower cost of plastic scrap.

Material availability remains on the low side as recyclers are reducing operating rates at their plants to avoid a supply overhang amid the weak demand. Nevertheless, there was sufficient material to meet demand across all product sectors over the last two months. Supply has improved slightly this month as several recycling lines have been brought back into operation following maintenance. Material availability of recycled PET, polyethylene and polypropylene in particular has improved as additional capacity has back come on stream.

Recycled PET prices have come under the most severe downward pressure so far this year, falling by €125-150 per metric ton since the turn of the year. Recycled PP prices are down by €65-70 per tonne, recycled HDPE prices have fallen by €30-40 per tonne and recycled low density PE prices are €50 per tonne lower over the same period. Recycled high impact polystyrene prices have fallen the least, down by just €10 per tonne.

Recycled plastics prices are expected to continue falling over he next few weeks as additional supply is brought back on stream. The price slide is however expected to stabilize with processors likely to restock over the coming months.

Recycled PET
In January, PET recyclers had to make further price concessions in the face of ongoing weak demand and the falling cost of bottle scrap. R-PET clear flake food-grade pellets and clear flake prices fell by €50 per tonne while colored flake grades fell by €60 per tonne.

Recyclers continued to maintain curbs on production amid the low order intake. Demand for recyclate was adversely impacted in January by the beverage bottle-making industry being in low season and processors only returning back to full operations during the second week of the month.

Recycled PET prices fell further during the first two weeks of February because of low demand and the falling cost of bottle scrap. Clear food-grade pellets and clear flake prices fell by €90-100 per tonne while colored flake prices fell by €65-70 per tonne.

Recycled PET demand remained hampered by the beverage bottle-making industry being in low season and also by the much lower prices for virgin PET as prices have tumbled over the last six months. 

Recycled LDPE 
In January, recycled LDPE recyclers were unable to hold onto price rollovers and had to concede discounts because of weak demand and prices fell between €10-20 per tonne.

Demand was up slightly last month but replenishment of inventories was nowhere near as strong as it normally is at this time of year. Production controls remained amid the low demand but there was sufficient material to meet customer orders.
Recycled LDPE prices fell between €30-40 per tonne during the first two weeks of February because of continued weak demand and improving supply. Production rates have been stepped up while demand remained flat.

Recycled HDPE 
Recycled HDPE prices remained unchanged during the first month of the new year as a result of slightly better demand. Restocking by processors was more than expected while recyclers maintained strict production controls. There was nevertheless enough material available to fulfil customer orders.

Prices fell by €30 per tonne during the first two weeks of February due to continued demand weakness and improving supply. Processors were ordering only limited volumes due to low order intake from their customers. Material availability improved because of some recycling plants coming back on stream after maintenance turnarounds.

Recycled PP
Recycled PP prices slipped back by €20-25 per tonne during the first month of the new year on continued weak demand and improving supply. Many processors only restarted their plants during the second week of the month and ordering activity was similarly slow. Material availability improved as some recycling plants came back on-stream following maintenance.
In February, prices came fell by a further €50 per tonne as supply continued to improve while demand remained well below normal levels. 

Recycled high-impact PS
Recycled PS prices remained largely unchanged in January as recyclers kept production cutbacks in place. There was nevertheless sufficient material to fulfill order intake. Some processors only restarted operations during the second week of the month and hence recyclate order books was correspondingly low.

In February, prices edged almost €10 per tonne lower in a fairly well-balanced market.