Sustainable Plastics - March/April 2022 - 36

recycling prices
R-PET price premium over virgin
widens to new record high
Rising price trend for all other recycled plastic types
I
In February, demand recovered sufficiently
to enable recyclers of all plastic types to
raise prices. R-PET saw the sharpest price increase
with clear flake and clear food grade
pellets rising by €100/tonne, covering in full the
rise in bottle scrap purchase costs. Clear R-PET
food grade pellets prices now cost almost €400/
tonne more than virgin material with clear R-PET
flake prices now just slightly less than virgin material
prices.
R-PET remains tight with waste bottle availability
in short supply. Most other recycled plastic
types saw a slight improvement in availability of
production scrap, mainly as a result of lower exports
of plastic waste to Asia.
Brand owners continue to introduce new sustainability
projects, but their growing demand for
R-PET is often unmet due to material shortages.
In February, all other recycled plastic types
posted price increases, although in most cases
the price increase was insufficient to cover the
rise in material, energy and logistics costs.
This month, plastics recyclers once again are
raising prices to compensate, at least partially,
for higher material and energy costs, and for
the most part, they succeeded. R-PET demand
remains high while other recycled plastic types
reported a slight upturn in order intake.
Recycled polyethylene
terephthalate (R-PET)
In February, R-PET clear
flake and food grade pellets
saw triple-digit price gains
due to strong demand and
limited availability. The €100/
tonne price hike represents a
sizeable margin gain above
the €44/tonne rise in clear
bottle scrap purchase costs.
Coloured flake prices also
increased by more than the
€25/tonne rise in mixed bottle
scrap purchase costs,
which increased by €25/
tonne.
PET bottle scrap availability
remains very limited and consequently
R-PET supply remains
tight. At the same time,
R-PET demand continues to
grow with ever more brand
owners being left frustrated by
a limited supply of material for
new sustainability projects.
In March, R-PET recyclers
36
March/April 2022
are implementing further
price increases amid continued
strong demand and tight
availability. Food-grade material
is now priced well above
virgin material.
Recycled low-density
polyethylene (R-LDPE)
LDPE recyclers managed to
push through price increases
in February to cover higher
material and energy costs.
Purchase scrap supply has
increased as exports of plastic
waste to Asia have fallen
sharply. Demand for recyclate
continues to grow despite
improved availability of
low-priced virgin material.
In March, recyclers called
for further price rises to cover
their cost increases.
Recycled high-density
polyethylene (R-HDPE)
In February, recyclers were
able to pass through a portion
of the increase in energy and
logistics costs for blow moulding
material. Injection moulding
prices increased by slightly
less due to competition from
lower-priced virgin material.
The availability of production
scrap has improved while
R-HDPE demand remains
healthy.
In March, recyclers attempted
to pass through the
remainder of the cost increase
which they were unable to recover
in February.
Recycled polypropylene
(R-PP)
R-PP prices increased €2025/tonne
in February following
from a rollover in the
previous month. Production
scrap supply tightened but
there was still sufficient material
available to meet contractual
obligations. Following
a slow start to the year,
R-PP demand picked up
sharply, but automotive sector
demand remained well
below what would normally
be expected.
With demand improving,
recyclers have pushed for
higher prices in March to cover
rising costs.
Recycled high-impact
polystyrene (R-HIPS)
In February, recyclers were
only able to partly recover
higher costs due to competition
from virgin material.
Production scrap availability
has improved due to lower
exports while contractual
obligations were largely fulfilled.
Demand picked up in
February after a slow start to
the year.
In March, with demand returning
to more normal levels
and costs rising, recyclers
pushed through further price
increases.
Sustainable Plastics - March/April 2022

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