Sustainable Plastics - September/October 2023 - 36

recycling prices
recycling prices
Downward R-PET price
trend gathers momentum
Most other classes
possibly approaching
bottom of price cycle
T
he European recycling
industry has, for
the most part, continued
to suffer from
falling prices and profitability
during the last two months. Recycled
plastics prices are under
severe pressure because of persistent
weak demand, competition
from the falling cost of offspec
virgin plastics and cheaper
imports from Asia.
The falling cost of virgin material
relative to recycled plastics
is taking its toll on the recycling
industry. The downward price
pressure facing R-PET remains
particularly problematic as
Recycled polyethylene
terephthalate (R-PET)
In August, R-PET clear flake prices fell
€100/tonne, clear food-grade pellet prices
were down by €90/tonne and coloured
flake prices fell by €40/tonne. R-PET prices
remain under pressure because of the
falling cost of bottle scrap, cheap Asian
imports, low demand and competition
from primary material.
Demand remained under pressure because
of competition from the falling cost
of primary PET and competitively priced
imports from the Far East. Furthermore,
the beverages industry failed to increase
seasonal demand in line with expectations.
Material availability is more than sufficient
despite recyclers continuing to curb production,
while low-cost material from Asia
has added to more than adequate supply.
R-PET prices remained under pressure
during the first two weeks of September.
Clear food-grade pellet prices plunged by
a further €150/tonne and clear flake prices
fell by €40-50/tonne. Coloured flake prices,
on the other hand, increased by €1520/tonne.
Recycled
high-density
polyethylene (R-HDPE)
In August, R-HDPE prices fell less steeply
compared with the previous month. Coloured
blow moulding pellets prices fell
36
September/October 2023
converters increasingly opt for
cheaper virgin material rather
than R-PET. Since early 2019,
clear R-PET pellet prices have
been consistently higher than
virgin PET. However, the price
differential between clear foodgrade
R-PET pellets and virgin
PET has narrowed over the last
12 months from a peak of €850/
tonne in September 2022 to
€270/tonne in September 2023.
R-PET once again saw the
largest price decline during
August. R-PET clear flake prices
fell by €100/tonne and clear
food-grade pellet prices are
down by €90/tonne.
Other classes of recycled
plastics posted less steep price
reductions in August compared
with the previous month. R-HDPE
prices fell €20-30/tonne compared
with a reduction of €4050/tonne
in July. R-LDPE natural
film and translucent film pellet
prices dropped by €20-30-tonne
against €60-90/tonne in the previous
month. R-PP prices fell by
€50-60/tonne against a reduction
of €70-80/tonne in July.
€30/tonne, and black injection moulding
pellets were €20/tonne down compared
with closing contract settlements in the
previous month.
Demand remains extremely low with
the construction industry in particular failing
to recover as expected. Recyclers have
maintained low production rates, yet there
is still plenty of material to meet demand.
R-HDPE prices rallied during the first two
weeks of September with an increase of
€20/tonne for both black injection moulding
and coloured blow moulding pellets.
Recycled low-density polyethylene
(R-LDPE)
Recyclers failed to stabilise prices in August
and had to grant further small concessions.
Natural film and translucent film
pellet prices were down by €20/tonne
and black extrusion pellet prices down
by €10/tonne. Recyclers continued with
production cutbacks to avoid a build-up
of excess stock levels, yet there was still
sufficient material availability to fulfil orders.
Demand remained very low due to
the summer holidays, yet there was some
evidence of pre-buying by converters.
R-LDPE price movements varied during
the first two weeks of September. Natural
film prices remained unchanged, translucent
film pellet prices fell €20/tonne, while
black extrusion pellet prices increased by
€10/tonne.
Recycled plastics price
movements varied widely between
classes during the first
two weeks of September.
R-PET food-grade pellet prices
plunged €150/tonne, while
R-PET coloured flake prices
increased by €20/tonne. R-PP
and R-HIPS prices fell somewhat,
while R-HDPE prices increased
by €20/tonne. R-LDPE
price changes varied between
product types.
Recycled polypropylene (R-PP)
R-PP prices declined €50-60/tonne during
August, which represents a less steep decline
compared with the previous month.
Recyclers were forced to grant sizeable
price concessions because of competition
from low-priced off-spec primary material
and low volume calls. Demand remained
at a very low level because of subdued
consumer spending and the impact of
the holiday season. There was more than
enough material despite recyclers continuing
to throttle production.
Black homopolymer and black copolymer
pellet prices fell by €10/tonne during
the first two weeks of September.
Recycled high-impact polystyrene
(R-HIPS)
In August, recyclers were prepared to meet
buyers demand for much lower prices in
order to maintain sales volume. R-HIPS
prices were down by €60/tonne during August,
which represents a steeper decline
compared with previous months. There
was more than enough material to meet
volume calls despite recyclers continuing
to restrict production. Demand remained
very subdued during the holiday season.
R-HIPS prices fell by €20/tonne during
the first two weeks of September.
Sustainable Plastics - September/October 2023

Table of Contents for the Digital Edition of Sustainable Plastics - September/October 2023
