In July, the downward price pressure on standard recyclate in Europe eased for higher quality grades; however, prices for most lower specification material remained under pressure.
This month, the price of most classes of standard recyclate materials are being rolled over with a small price uptick for higher quality grades.
While volume calls across most types of standard recyclate picked up slightly during the second quarter of the year, demand for recyclate still remained well below normal levels during July and August. The summer holiday season depressed demand even further over the last two months. The recycled PET sector is the exception; demand for recycled PET clear flake remains close to normal levels as beverage sector demand is more resilient than expected.
Recyclers have continued to run their plants at reduced rates over the last two months, apart from the PET sector, where plant operating rates are close to normal levels.
Recycled PET prices were largely unchanged in July as costs stabilized while demand remained at a normal level. In August, clear food-grade pellet prices and clear flake prices edged €10 per metri ton higher.
Recycled low density polyethylene prices mostly rolled over in July in a fairly well-balanced market in which low output closely matched low demand. This month, recycled LDPE natural film and translucent film prices are up by €10 per tonne.
In July, recycled high density PE colored blow molding pellet prices remained unchanged and black injection molding pellet prices fell €10 per tonne. Costs continued to fall; there were few signs of a pick-up in demand. In August, the fall in black injection molding pellet prices has been reversed while colored blow molding pellet prices were rolled over once again.
Recycled polypropylene prices increased by €10 per tonne in July as producers curbed output levels further in response to the low order intake. Recycled PP prices remain unchanged this month in a well-balanced market.
Recycled high impact polystyrene prices dipped by €10 per tonne July due to much lower virgin material prices and weak demand. Prices are stable this month.