Food-grade R-PET Is 650 Euros/ton More Expensive Than Raw Material! The Price Of Recycled Plastic Keeps Rising in Europe

Recycled plastic producers continued to raise prices in June despite a sharp drop in the cost of primary plastic. Although the economic environment deteriorates and the demand for primary plastics gradually decreases, the price of recycled plastics continues to rise due to high demand and low import volume.

With the exception of homopolymer R-PP, prices of all grades of recycled plastics rose strongly in June. R-pet remains the most popular, up in the triple digits. Due to the limited increase in cost, relatively speaking, renewable enterprises can obtain higher profits. There are signs that R-PET demand is slowing as the price gap between native and R-PET has widened considerably this year. Due to the high price of original PS, the price of R-hips rises, and the processing enterprises turn to seek the replacement of R-hips. Recycled polyolefin prices are also rising.

Almost all companies have seen an increase in orders as more customers have embarked on sustainability programmes. Demand for recycled plastics in electronics and automobiles also showed signs of picking up.

In July, recycling July to pass on the high cost, recycled plastic prices rose further. However, the planned price increase is limited by the seasonal shutdown during the summer holidays in Europe, which dampened demand for recycled plastics.

Specific situation of each category

r-PET

R-pet producers pushed through triple-digit price increases in June due to good demand and low supply. The cost of waste bottles has increased by only €10-20 / ton, so profits have improved.

Demand for R-PET has eased due to the increasing price difference between recycled and native materials. In June, the price of clear food-grade R-PET pellets was 650 EUR/t higher than the price of native PET, compared with 270 EUR/t in January. PET processors are also reducing orders in light of the deteriorating economic environment and growing concerns about demand for soft drink bottles.

Clear R-PET bottle flakes and clear food grade pellets are in sufficient supply, but the supply of colored bottle flakes is shortened.

In July, PET reproducers are expected to see further price increases on top of increased costs. However, planned prices may be constrained by an increasingly balanced market.

r-LDPE

Demand was good, base costs rose and R-LDPE prices rose further in June. The price of transparent film will increase by 60 euros/ton, and the price of translucent film particles and black injection particles will increase by 50 euros/ton.

Although shortages of premium grades have been reported, material availability is sufficient to meet demand.

Base and energy costs pushed prices higher in July, and the summer shutdown of recycling companies will reduce the supply of recycled material.

r-HDPE

R-hdpe prices rose by 30-50 euros/ton in June. Because of the widening price gap between native and recycled materials, recyclers can pass on costs to buyers.

Color blow molding grade R-HDPE particles demand is stable, electronics and automotive industry demand for black injection molding particles is picking up.

In July, R-HDPE prices are expected to rise along with the cost of basic materials.

r-PP

R-pp homopolymer pellet prices fell by €20 / ton in June due to lower raw material costs. On the other hand, the price of R-PP copolymer particles increased by €60 / ton.

Auto industry demand is finally turning around. Although raw materials were generally in short supply, customer contracts were fulfilled in most cases.

In July, R-PP recycling companies will try to pass on the higher costs, but lower raw material prices may not lead to higher R-PP prices

r-HIPS

In June, the price of R-HIPS jumped by €70 / ton due to high demand for some original PS and low volume. Soaring sales mean demand is far outstripping supply as more customers switch to R-Hips.

As the cost of original PS continues to rise in July, the pressure of price increase faced by regeneration enterprises will be much smaller.