Sustainable Plastics - May/June 2022 - 36

recycling prices
newsround
Recycled PET buyers switch to
virgin PET as price gap widens
Supply bottlenecks and strong demand
support recyclers' price push
I
n April, recycled polymer
prices continued to rise,
but to a much smaller
extent compared with
the previous month. Recycled
PET clear flake and food grade
showed the highest increase
with prices rising by €100/
tonne. Recycled LDPE natural
film prices have risen by €90/
tonne. Most other classes and
types saw gains of between
€30-50/tonne. The sharply
rising cost of primary material
supported recyclers' push for
higher prices.
Higher virgin polymer prices
and shortening availability
also led to more converters
seeking alternative supply in
the form of recycled material.
Recycled plastics demand was
particularly robust across the
consumer goods sector driven
by brand owners' sustainabiliRecycled
polyethylene
terephthalate
In April, clear food-grade pellets and
clear flake grades saw massive price
hikes of over €100/tonne with coloured
flake prices rising by €50/tonne. Rising
virgin PET prices and bottle scrap costs
supported recyclers' calls for higher recycled
PET prices.
PET bottle scrap, particularly for
high-quality grades, was in short supply
with bottlenecks and delays in logistics
also adding to transportation costs.
More recycled PET plastics buyers
have been switching to virgin PET bottle-grade
material due to soaring recycled
PET prices. The gap between the
two products has widened to a great extent,
although prices for both virgin PET
bottle and recycled PET flakes posted
three-digit hikes in April. Many converters
were no longer able to increase recycled
content in their packaging considering
the huge gap between recycled and
virgin PET prices.
Recycled low-density polyethylene
In April, recyclers were able to raise
36
May/June 2022
ty programmes.
There was sufficient material
across most recycled plastics
classes and types in April to fully
meet demand from regular customers,
although it was harder
to find additional volumes required
to serve new customers.
High-quality material was, however,
in shorter supply.
This month, higher production
scrap costs and higher
energy prices are leading to
further recycled plastic price
increases across the board.
Supply is mostly reasonably
balanced for recycled LDPE,
recycled HDPE and recycled
PP. Recycled PET bottle scrap
remains short, although there
are reports of an increase in
imports from the Middle East
and Africa. Recyclers are at
least able to serve their regular
customers properly, although
additional volumes
remain a challenge.
For recycled HDPE, slightly
declining scrap material
volumes and the continuing
recycled LDPE prices without much
discussion aided partially by the sharp
increase in virgin LDPE prices. Natural
film grades posted a price rise of €90/
tonne with other grades rising by €3050/tonne.
There
was sufficient availability of recycled
LDPE to meet demand, although
high-quality grades were in shorter supply
and were more expensive.
Recycled LDPE demand was supported
by converters switching from primary material
to recyclate due to the sharply rising
cost of primary LDPE.
Recycled high-density
polyethylene
In April, recycled HDPE prices increased
by €50/tonne with recyclers able to push
through gains without much resistance
due to material shortages and sharply rising
prices for primary material.
There was sufficient material available
to serve regular customers, although
high-quality grades were in shorter supply
and more expensive.
Recycled HDPE demand for consumer
goods and construction applications
poor availability of additives
are limiting the output of tube
grades. Demand could thus
noticeably exceed supply in
this market sector.
was robust, while sales of black injection
moulding material to the automotive sector
slowed compared with the previous
month.
Recycled polypropylene
Recycled PP prices increases slowed
considerably compared with the previous
month with gains of €25/tonne for
homopolymer pellets and €50/tonne for
copolymer pellets. Sufficient production
scrap was available to serve the needs of
regular customers. Recycled PP demand
was supported by the sharply rising cost
of primary material and by automotive
producers topping up inventories.
Recycled high-impact polystyrene
In April, recycled HIPS prices increased
by €50/tonne aided by the sharply rising
cost of primary material. Recycled HIPS
sales increased as buyers of standard
polystyrene switched, where possible,
to recycled HIPS, as primary HIPS has
become very expensive and is in short
supply. There was sufficient material
available to serve regular customers, but
orders from new customer were often
subject to allocation.
Sustainable Plastics - May/June 2022

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