Sustainable Plastics - September/October 2022 - 44

recycling prices
Price declines gather pace
on much lower demand
R-PET is the only exception
I
n August, only R-PET
materials
The price softening trend
registered
price gains. R-PET clear
food grade pellets resumed
an upward trend with
notations settling €50/tonne
above the previous month.
R-PET clear flake and R-PET
coloured flake grades gained
around €20/tonne over the
same period.
Several other recycled plastics
segments posted lower
prices in August. R-HDPE
black injection moulding pellet
prices fell €20/tonne, R-LDPE
prices fell between €15-40/
tonne and R-PP prices were
down €20-50/tonne. R-HDPE
coloured blow moulding pellets
and R-HIPS prices, on
the other hand, remained unchanged
compared to the previous
month.
Recycled polyethylene
terephthalate (R-PET)
In August, clear bottle scrap prices actually
fell slightly, yet R-PET clear food grade
pellet prices resumed their upward trend,
rising by €50/tonne on improved demand.
R-PET clear flake and R-PET coloured
flake prices each increased by €20/tonne.
Demand for all R-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, R-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 coloured flake prices
rising at a slightly faster rate compared
to clear flake and clear food-grade pellets.
Recycled low-density polyethylene
(R-LDPE)
In August, R-LDPE prices declined
within a range of €10-35/tonne with base
material prices down significantly. Recyclers
struggled to pass on the higher cost
44
September/October 2022
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 R-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.
of energy and had to accept minor price
concessions.
R-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 high-density
polyethylene (R-HDPE)
In August, R-HDPE blow moulding pellet
prices were settled on a rollover basis,
while R-HDPE injection moulding pellet
prices dropped by around €20/tonne due
to slightly weakening demand.
R-HDPE injection moulding 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 R-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 R-HDPE.
Recycled polypropylene (R-PP)
Lower demand and a reduction in virgin
polymer prices led to a reduction in R-PP
homopolymer prices of €30/tonne and a
reduction in R--PP copolymer prices by
€50/tonne in August.
The automotive sector continues to be
a drag on R-PP 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 R-PP prices declining
further in September.
Recycled high-impact polystyrene
(R-HIPS)
In August, R-HIPS 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 R-HIPS prices falling in September.
Sustainable Plastics - September/October 2022

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