Standard recycled plastics prices in Europe began the new year with a hike. In January, recycled PET prices increased €15-20 per metric ton, the first increase since July 2022.
The price increase was the result of more demand from as processors refilled their inventory. There were also small price increases for recycled polypropylene and recycled polystyrene.
Recycled low density polyethylene natural film and translucent film and recycled high density PE blow molding pellet prices were mostly stable. Recycled LDPE black extrusion pellets and recycled HDPE black injection molding 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 increased sharply this month, which has prompted more enquiries from converters for recyclate, while 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 recycled 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, recycled PET producers were able to raise clear food-grade pellet and clear flake prices by €70-80 per tonne and colored flake prices by €40-50 per tonne.
Recycled LDPE natural film prices also saw a substantial increase; up by €70 per tonne, mainly due to the higher cost of virgin material. Recycled HDPE, PP and PS registered more modest gains of between €10-30 per tonne.
Recycled PET
Recycled PET prices began the new year on a more positive note with prices rising for the first time in many months. Prices increased by €15-20 per 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, prices have taken a more decisive step in an upward direction with notations up by €50-80 per 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.
Recycled 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 HDPE
In January, recycled HDPE blow molding prices remained stable while injection molding prices fell by €5 per 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, producers were able to raise prices by €10-20 per 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 LDPE
In January, recycled LDPE natural film prices barely moved; translucent film prices increased by €20 per 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, prices increased across the board with significant hikes of up to €80 per tonne for natural film and modest gains for black extrusion material. The recycled LDPE sector is benefiting 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 PP
In January, PP recyclers were able to raise prices by €10-15 per tonne because of stronger stock replenishment by processors. Recyclers continued to maintain tight production controls to facilitate a good balance between demand and supply.
Prices continued to rise in February with notations up around €20-30 per 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 PS
PS recyclers were able to raise prices by €10 per 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.
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.