In February, the upward trend for standard recycled plastic prices in Europe gathered momentum across a broad front and continued that rise through March.
Recycled PET had the biggest price increase; producers raised the price for clear food-grade pellet and clear flake prices by €70-80 per metric ton and colored flake prices by €40-50 per tonne.
Recycled low density polyethylene prices also saw a substantial increase. up by €70 per tonne, mainly due to the higher cost of virgin material. Recycled high density PE, recycled polypropylene and recycled polystyrene registered more modest gains of between €10-30 per tonne.
In March, standard recycled plastics prices were again higher across the board. Recycled PET once more led the way with price gains for clear flake material of €90 per tonne. Clear food-grade pellet prices were up by €45 per tonne, and colored flake prices increased by €35 per tonne.
Other highlights include recycled PS prices rising by €50 per tonne and recycled LDPE natural film and translucent film prices with respective increases of €40 per tonne and €30 per tonne. Most other standard recycled plastic types posted gains of €10-20 per tonne.
A number of factors are supporting suppliers' price push. The price of virgin material has increased sharply, prompted more requests from converters for recyclate, and raised the cost of base scrap material at the same time.
Demand has improved across all material types over the last two months, but still remains well below normal levels. Recycled PET is the exception, where stock replenishment by beverage bottle converters and concern about possible further price increases ahead, has led to demand recovering to levels not seen for quite a long time.
PET
Several factors behind the upward price trend include the higher cost of virgin PET and scrap material, stronger order books and stock replenishment by converters.
Delays in shipments from Asia, together with the rising cost of freight due to the attacks on commercial cargoes in the Red Sea, are also playing a role.
Recycled PET demand from the beverages sector is reportedly as being almost back to normal levels as processors are starting to replenish stocks. Meanwhile, PET recyclers have raised run rates to meet the growing demand for recyclate.
Recycled HDPE
In February, R-HDPE producers raised 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.
In March, HDPE prices once again nudged slightly higher with gains of €10 per tonne over the previous month. The rising cost of virgin material and a slight improvement in demand supported the modest price rise.
Recycled LDPE
The recycled LDPE sector benefited from the higher cost of virgin material, but on the other hand, the cost of base material is also higher. Demand edged upward, but still remains below normal levels.
Recycled LDPE prices maintained an upward trajectory in March. Natural film grades once again led the way with gains of €40 per tonne, followed by translucent film pellets with a rise of €30 per tonne and extrusion black pellets with a gain of €10 per tonne.
Recycled PP
Recycled PP prices continued to rise in February with notations up by €20-30 per tonne. Recyclers attempts to raise prices met with limited resistance and was supported by the rising cost of virgin material. Stock replenishment continued but at a low level.
Prices nudged higher in March, though, with black homopolymer pellets rising by €20 per tonne and black copolymer pellets up by €10 per tonne. Recyclers were largely unable to benefit fully from the growing interest being shown in recyclate from processors due to the soaring cost of standard PP because most recycling plants continued to operate at reduced run rates.
Recycled high-impact PS
Recycled HIPS 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.
In March, prices rose a further €50 per tonne over the closing levels in the previous month while prices benefited from the skyrocketing cost of virgin material and a modest improvement in demand.
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