Prices for post-industrial polypropylene pellets in North America have dropped within the last three months.
After consulting market sources, Plastics News has determined that the prices have decreased an average of 3 cents per pound. PN also is tightening the range of prices being reported. The new range is 29-31 cents per pound.
"Prices declined because of low virgin PP demand and competition with inexpensive virgin resin — molders tend to turn away from recycled if virgin is less, if they're not required to use recycled," said a recycler in Missouri.
A decrease in demand has affected the market, and prices are expected to stay low through the rest of 2023. In mid-2022, prices were about twice as high.
"I don't believe it [is] a short-term thing; this is the new normal for the next six to 12 months," said a recycler in Ohio.
"I hope I am wrong, but I just don't see anything on the horizon to change the underlying weakness in the market right now," the recycler added.