Prices for recycled resins in Europe continued on a slightly downward trend over the last two months of 2024, influenced by very low demand, higher stocks and the lower cost of bottle scrap.
Recycled PET clear flake and clear food-grade pellet prices each slipped by €10 per metric ton during November and December 2024, influenced by lower demand from the beverages sector and the falling cost of virgin material. Colored flake prices have fallen by €45 per tonne over the two-month period mainly because of a larger reduction in the cost of colored scrap material.
Recycled low density polyethylene prices dipped by €10/tonne in each of the last two months, mainly due to an abundance of supply versus demand. Recycled high density PE colored blow molding and injection molding prices each fell by €10 per tonne in November, but prices stabilized in December.
Recycled polypropylene prices fell by €20 per tonne in November and fell by a further €10 per tonne in December largely because of low demand and the falling cost of standard off-spec material. Recycled high impact polystyrene prices fell by €20 per tonne in November and stabilized in December in a well-balanced market.
Demand for standard recycled materials even fell below what would normally be expected for the short Christmas month of December. Processors held back from purchasing additional volumes because of low end user demand and stock minimization policies.
Recyclers have continued to run their plants at reduced rates, yet this does not appear to have prevented supply levels from rising as demand has been so poor. Many recyclers decided to shut down their plants early for either an extended Christmas holiday period or to undertake plant maintenance.
January 2025 is unlikely to see any major pick-up in demand and prices as this is a short month for production days due to holidays. In addition, recyclers are likely to face competition from low-cost virgin material. While demand may well increase due to stock replenishment, recyclers have well-filled stocks, meaning that margin improvement through premium prices is unlikely. The European Union's quota for recycled PET comes into force in the new year, which may lead to higher demand from the beverages sector.
Recycled PET
In November, recycled PET price movements varied widely with some quotations dropping by €50 per tonne and others being rolled over. On average, however, clear flake and clear food-grade pellet prices fell by €10 per tonne, even though clear bottle scrap prices remained unchanged: colored flake prices fell by €30 per tonne, Prices were pressured by low seasonal demand and abundant stocks.
In December, prices continued to slide with clear flake and clear food-grade pellet prices down by €10 per tonne and colored flake prices down by €15 per tonne. The underlying price drivers included poor demand, good supply and lower cost of bottle scrap. Recyclers’ stock levels have increased over recent months because of the low demand. Many plants shut down early for Christmas and plan to take an extended holiday. Demand is at a low point for the year as processors keep an eye on stock levels for balance sheet reasons.
Recycled HDPE
In November, recycled HDPE prices eased slightly with a reduction of €5-10 per tonne. Demand continued to run at a low level due to the depressed economic situation and processors limiting their purchases for annual balance sheet reasons.
Prices stabilized in December despite processors’ demands for a price reduction. Demand reached a low level for the year as processors bought only minimal volumes as they sought to reduce inventories for balance sheet reasons. Many recyclers shut down plants early for an extended holiday, given that stock levels were starting to grow as volume calls were so low.
Recycled LDPE
Recycled LDPE prices softened further in December with losses of €5-10 per tonne across the board. Demand continued at a low level, and together with adequate supply, this led to growing downward price pressure. In December, recyclers sought to offload stocks before year-end, pushing prices further. Demand reached its lowest point for the year in the short Christmas month as processors bought just enough material for their immediate production needs. Many recyclers closed their plants early for an extended holiday in view of the low order intake.
Recycled PP
In November, recycled PP prices fell by €20 per tonne as demand continued to falter. Buying activity was adversely impacted by competition from a further drop in the cost of standard off-spec material and by processors holding back from purchasing for accounting reasons.
Prices fell further in December, with notations down by €10 per tonne in a fairly well-balanced market. Prices were influenced by the falling cost of standard material and very low demand. Processors bought only enough material to fulfill current production needs with a close eye on their end-of-year stock position. Given the low demand, recyclers either closed their plants early for an extended holiday or undertook plant maintenance.
Recycled PS
Recycled PS prices fell by €20 per tonne in November due to ongoing demand weakness and competition from off-spec standard material.
Prices stabilized in December in a well-balanced market. Processors bought only enough material to fulfill current production needs with a close eye on their end-of-year stock position. Given the low demand, recyclers either closed their plants early for an extended holiday or undertook plant maintenance.
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