Sustainable Plastics - March/April 2023 - 40

recycling prices
recycling prices
R-PET prices fall faster
on lackluster demand
Signs that price erosion could be losing momentum this month
T
he downward price
trend for recycled
polymers which began
late summer
2022 has continued into February
and March. Weak demand
because of the economic
downturn is the root cause of
the downward price trend. Other
contributory factors include
more competitively priced virgin
material and the lower cost
of plastic scrap.
Material availability remains
on the low side as recyclers
are reducing operating rates at
their plants to avoid a supply
overhang amid the weak demand.
Nevertheless, there was
sufficient material to meet demand
across all product sectors
over the last two months.
Supply improved slightly in
February as several recycling
lines have been brought back
into operation following mainRecycled
polyethylene
terephthalate (R-PET)
The downward trend for R-PET prices accelerated
even further during February
because of low demand and the falling
cost of bottle scrap. R-PET clear foodgrade
pellets and clear flake prices fell by
€90-100/tonne, while coloured flake prices
fell by €65-70/tonne.
R-PET demand remained hampered
by the beverage bottle-making industry
being in low season and also by the
much lower prices for virgin PET. Virgin
PET prices have tumbled over €150/
tonne since the turn of the year. The gap
between R-PET clear food-grade pellets,
R-PET clear flake prices and virgin PET
prices remains very wide at €750/tonne
and €340/tonne, respectively.
R-PET recyclers kept production at a
low level because of the weak sales, but
output was more than enough to meet
demand. There was no shortage of bottle
scrap reported.
In March, a further softening in R-PET
prices is likely as demand is expected to
remain weak while supply is expected to
lengthen.
40
March/April 2023
tenance. Material availability of
R-PET, R-PE and R-PP in particular
has improved as additional
capacity has come back
come on stream.
R-PET prices posted the
largest discounts in February
with clear flake and clear
food-grade pellets falling by
€90-100/tonne. R-PP prices
were down by €45-50/tonne in
February, while R-HDPE prices
fell by €30/tonne and R-LDPE
prices were down €3040/
tonne. R-HIPS prices fell by
only €10/tonne.
Recycled plastics prices fell
further during the first week
of March. The price downturn
could however lose some
momentum over the next few
months. While demand is quite
likely to improve over the next
few months as processors start
to replenish stocks, demand is
still well below normal levels.
Recycled low-density polyethylene
(R-LDPE)
In February, R-LDPE prices fell between
€30-40/tonne because of continued weak
demand and improving supply. Production
rates have been stepped up but still
remained below normal levels. Demand
remained flat despite some restocking.
In March, demand is picking up a little but
was unable to prevent further price erosion
despite supply remaining at a low level.
Recycled high-density
polyethylene (R-HDPE)
In February, R-HDPE prices fell by €30/
tonne due to continued demand weakness
and improving supply. Processors
were ordering only limited volumes due
to low order intake from their customers.
Material availability improved because of
some recycling plants coming back on
stream after maintenance turnarounds.
R-HDPE prices are sliding again in
March, but the downward trend appears
to be losing momentum. Processors'
order books are beginning to
improve and there is also stock replenishment
taking place.
Recycled polypropylene (R-PP)
In February, R-PP supply continued to
improve while demand remained well below
normal levels. R-PP price reductions
accelerated compared to the previous
month, falling by a further €50/tonne. Imports
of low-cost virgin material from Asia
also contributed to the downward pressure
on R-PP offers. In March, R-PP prices are
declining further but at a reducing rate. Demand
is recovering but still remains below
a normal level. Material availability is more
than sufficient to meet the low demand.
Recycled high-impact polystyrene
(R-HIPS)
In February, R-HIPS prices edged almost
€10/tonne lower in a fairly well-balanced
market. R-HIPS demand benefited from
some stock replenishment but overall
sales were lower than normal. Production
remained at a low level, but there was still
sufficient material to satisfy the low level
of demand. R-HIPS prices showed little
change in the first two weeks of March.
Processors' order books were very low and
they were holding back on placing new orders.
Availability was also low as producers
maintained reduced operating rates.

Sustainable Plastics - March/April 2023

Table of Contents for the Digital Edition of Sustainable Plastics - March/April 2023

Sustainable Plastics - March/April 2023 - Cover1
Sustainable Plastics - March/April 2023 - Cover2
Sustainable Plastics - March/April 2023 - 3
Sustainable Plastics - March/April 2023 - 4
Sustainable Plastics - March/April 2023 - 5
Sustainable Plastics - March/April 2023 - 6
Sustainable Plastics - March/April 2023 - 7
Sustainable Plastics - March/April 2023 - 8
Sustainable Plastics - March/April 2023 - 9
Sustainable Plastics - March/April 2023 - 10
Sustainable Plastics - March/April 2023 - 11
Sustainable Plastics - March/April 2023 - 12
Sustainable Plastics - March/April 2023 - 13
Sustainable Plastics - March/April 2023 - 14
Sustainable Plastics - March/April 2023 - 15
Sustainable Plastics - March/April 2023 - 16
Sustainable Plastics - March/April 2023 - 17
Sustainable Plastics - March/April 2023 - 18
Sustainable Plastics - March/April 2023 - 19
Sustainable Plastics - March/April 2023 - 20
Sustainable Plastics - March/April 2023 - 21
Sustainable Plastics - March/April 2023 - 22
Sustainable Plastics - March/April 2023 - 23
Sustainable Plastics - March/April 2023 - 24
Sustainable Plastics - March/April 2023 - 25
Sustainable Plastics - March/April 2023 - 26
Sustainable Plastics - March/April 2023 - 27
Sustainable Plastics - March/April 2023 - 28
Sustainable Plastics - March/April 2023 - 29
Sustainable Plastics - March/April 2023 - 30
Sustainable Plastics - March/April 2023 - 31
Sustainable Plastics - March/April 2023 - 32
Sustainable Plastics - March/April 2023 - 33
Sustainable Plastics - March/April 2023 - 34
Sustainable Plastics - March/April 2023 - 35
Sustainable Plastics - March/April 2023 - 36
Sustainable Plastics - March/April 2023 - 37
Sustainable Plastics - March/April 2023 - 38
Sustainable Plastics - March/April 2023 - 39
Sustainable Plastics - March/April 2023 - 40
Sustainable Plastics - March/April 2023 - 41
Sustainable Plastics - March/April 2023 - 42
Sustainable Plastics - March/April 2023 - Cover3
Sustainable Plastics - March/April 2023 - Cover4
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