Recycled PET
In November, PET recyclers managed to widen their profit margins by passing through only a small proportion of a cost decline onto processors. Clear bottle scrap costs fell by around 160 euros per tonne while recycled PET clear flake and recycled PET food-grade pellet prices fell by 50 euros per tonne and 80 euros per tonne, respectively. Recycled PET colored flake prices fell by only 25-30 euros per tonne largely due to more robust demand from Eastern Europe.
Ordering remained well below expectations, although there was a small increase in demand from the beverage sector. While recyclers have continued to reduce production in line with the lower demand, there was no noticeable shortage of material.
Destocking by converters combined with the short production month further exacerbated an already weak demand position and led to a collapse in recycled PET prices. Clear flake material also faced stiff competition from imported recyclate. Recycled PET clear flake prices fell by 140-150 euros per tonne with colored flake and clear food grade pellet prices down by 100 euros per tonne, well in excess of the 50 euros per tonne reduction in the cost of bottle scrap.
Recycled LDPE
Recycled LDPE prices continued to fall in November albeit at a slower rate compared to the previous few months.
Transparent film pellets and black extrusion pellet prices fell by 10-20 euros per tonne while natural film grade prices were roughly stable. Yet again, recyclers were unable to factor in higher energy costs.
Supply was in better balance with demand as recyclers cut production even further in response and the low demand. The subdued demand is due mainly to competition from lower primary material prices and the economic downturn.
In December, recycled LDPE natural film prices fell by 50 euros per tonne with translucent film pellet prices down by 30 euros per tonne. Demand was further suppressed by destocking by converters ahead of end year balance sheet accounting.
Recycled HDPE
In November, recycled HDPE prices fell once again in response to the very weak demand. Colored blow molding pellet and black injection molding pellet prices fell by 15-20 euros per tonne.
While there appears to have been a small uptick in automotive sector sales, demand from most other sectors remained low. Recycled HDPE is facing growing competition from the falling price of primary material and the economic downturn is also restraining sales. Recyclers have curbed production even further in response to the low demand. There was however sufficient material available to cover contracted volumes.
In December, recycled HDPE prices fell by 30-50 euros per tonne as a result of lower input costs and a further deterioration in demand. Converters bought only sufficient material to cover their immediate needs ahead of the end year accounting.
Recycled PP
PP recyclers throttled production even further in November in response to continuing low demand. Nevertheless, this was insufficient to prevent R-PP prices from slipping by a further 30-40 euros per tonne.
While the automotive sector registered a small demand upturn in November, there was little improvement across other end use sectors. Competition form the falling primary material prices and the looming recession are the main factors restraining recycled PP demand.
Recycled PP prices fell by just 10 euros per tonne in December amid continuing production curbs and weak demand.
Recycled high impact polystyrene
In November, recycled HIPS prices fell by 20 euros per tonne in response to continuing low demand. Recyclers have reduced output even further to match the lower sales volumes. Competition from virgin material was not an issue here as primary HIPS prices remain well above recycled HIPS prices.
In December, recycled HIPS prices fell by 50 euros per tonne as a result of falling costs and low demand.