Demand for recycled plastics in Europe recovered enough in February to enable recyclers of all plastics to raise prices, with recycled PET seeing the sharpest price increase.
Clear food grade pellets prices in the region rose by 100 euros ($111) per metric ton, covering the rise in scrap bottle purchase costs. Clear recycled PET food grade pellets now cost almost 400 euros ($444) per tonne more than virgin material with recycled PET flake prices now just a little less than virgin material prices.
Recycled 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 recycled 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.
For March European 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. Recycled PET demand remains high while other recycled plastic types reported a slight upturn in order intake.
Colored recycled PET flake prices also increased in European markets in Februaryby more than the 25 euros ($27) per tonne.
Low density polyethylene 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.
High density PE recyclers were able to pass through a portion of the increase in energy and logistics costs for blow molding material. Injection molding prices increased by slightly less due to competition from lower-priced virgin material. The availability of production scrap has improved while recycled 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 PP prices increased 20-25 euros ($22-27) per 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, recycled 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.
High impact polystyrene recyclers were only able to partly recover higher costs due to competition from virgin material in February. 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.
Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]
Please enter a valid email address.
Please enter your email address.
Please select at least one newsletter to subscribe.
Staying current is easy with Plastics News delivered straight to your inbox, free of charge.
Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.
1155 Gratiot Avenue Detroit MI 48207-2997