Recycled plastics prices fall in Europe with one exception

In August, only recycled PET materials registered price gains. Recycled PET clear food grade pellets resumed an upward trend with notations settling €50 per tonne above the previous month. Recycled PET clear flake and PET colored flake grades gained around €20 per tonne over the same period.

Several other recycled plastics segments posted lower prices in August. Recycled high density polythylene  black injection molding pellet prices fell €20 per tonne, Recycled low density PE prices fell between €15-40 per tonne and recycled PP prices were down €20-50 per tonne. Colored recycled HDPE blow molding pellets and recycled high impact polystyrene prices, on the other hand, remained unchanged compared to the previous month.

The price softening trend in August was generally the result of slowing demand, especially from the construction sector. Meanwhile, base material supply remained overall at a satisfactory level.

In September, a more pronounced price decline is taking shape. Significantly lower demand as consumer feel the pinch from a squeeze on their purchasing power, and a steeper decline in base material prices, is exerting downward pressure on recycled plastics prices.

The recycled PET segment, once again, is the only exception, with further price increases occurring. Here, demand is supported by the sustainability programs of consumer goods manufacturers and the tight availability of virgin PET material.

Recycled PET

In August, clear bottle scrap prices actually fell slightly, yet recycled PET clear food grade pellet prices resumed their upward trend, rising by €50per metric ton on improved demand. Recycled PET clear flake and Recycled PET colored flake prices each increased by €20 per tonne.

Demand for all recycled PET grades was boosted by the supply shortages for virgin PET. On the supply side, bottle scrap availability has continued to improve during the summer.

In September, recycled PET prices are expected to buck the downward price trend, at least temporarily. Prices are likely to show small gains, but there is little scope to further significant price increases over the next few months. Low availability and good demand point to colored flake prices rising at a slightly faster rate compared to clear flake and clear food-grade pellets.

Recycled LDPE

In August, recycled LDPE prices declined within a range of €10-35 per tonne with base material prices down significantly. Recyclers struggled to pass on the higher cost of energy and had to accept minor price concessions.
recycled LDPE availability remained sufficient to meet demand despite a reduction in supply of base material. While demand eased slightly in August, it remained well in line with normal seasonal expectations.

A decline in primary LDPE material prices is expected to herald a reduction in demand for the secondary market as some processors switch from recyclate to virgin polymers.

Recycled HDPE

In August, recycled HDPE blow molding pellet prices were settled on a rollover basis, while recycled HDPE injection molding pellet prices dropped by around €20 per tonne due to slightly weakening demand.

Recycled HDPE injection molding demand was adversely affected by continuing weakness in the automotive sector and a slight easing in demand from the E&E industry. Base material was sufficiently available to meet the contractual obligations from recyclers.

September is likely to see a sharp downturn in recycled HDPE prices despite rising energy costs. The economic downturn and declining purchasing power is putting pressure on demand for consumer goods. This is likely to adversely impact demands for recycled HDPE.  

Recycled PP

Lower demand and a reduction in virgin polymer prices led to a reduction in recycled PP homopolymer prices of €30 per tonne and a reduction in recycled PP copolymer prices by €50 per tonne in August.

The automotive sector continues to be a drag on demand with producers sitting on high stock levels. There was also more than sufficient base material to meet demand.

Lower virgin material prices and a demand downturn will see recycled PP prices declining further in September.

Recycled high impact PS

In August, recycled PS prices remained unchanged from the previous month on slightly weakening demand. There was a sufficient supply of virgin material available.

A decline in the cost of virgin material and a continued slide in demand will lead to recycled PS prices falling in September.