European Recycled Grades Update
|Month: June 2016|
|R-PET Flakes Clear/Blue||690||810|
|R- HDPE Black Corrugated Pipes (PIR**)||900||980|
|R- HDPE Black Pipes (PIR**)||900||1100|
|R- LDPE Black Film (PCR*)||710||840|
|R- LDPE Film (PIR**)||1100||1150|
|R- homo-PP black injection(PIR**)||830||890|
|R- homo-PP injection (PIR**)||920||950|
|R- PPBC injection (PIR**)||830||1080|
* (post-consumer recycle)
** (post-industrial recycle)
The R-PET market tracked a mostly stable trend in June, registering only slight changes of €10/ton in some cases. The market was balanced as supply was comfortable while demand was regular, though not brilliant. The trend in the R-PET market was influenced by the unusual situation of prime PET for this period of the year, which involved a softer trend due to weak demand. Some players commented that R-PET prices saw pressure from the narrowing gap between recycled and prime material. A recycler reported that he was aiming for increases of €20/ton at the beginning of the month, but he finally conceded to smaller gains of €10/ton due to calm demand. Regarding the July outlook, the seller commented that he doesn’t expect prices to move higher, especially if the prime PET market remains on a stable to softer note, as the changes in the prime PET market are generally reflected to R-PET prices. The recycler also expressed his concerns regarding the current price level of prime PET because if the gap between virgin PET and R-PET becomes narrower, buyers might choose to purchase prime material, which requires lower production costs. An R-PET buyer reported making some purchases with rollovers to decreases of €10/ton from last month. The buyer added that availability is good in R-PET market, while demand is not encouraging. Moreover, the buyer confirmed that the R-PET market was under pressure from the reduced gap between prime PET. The same buyer added that they might skip their purchases for recycled PET and buy mainly prime material. For July, the outlook is stable to softer as players are excluding the possibility of increases.
The R-HDPE market tracked a stable to softer trend, with decreases of up to €30/ton being reported compared to May. Supply is ample amidst sluggish demand. According to players, the R-HDPE market was stagnant in June, as was the case in the prime PE market. A recycler reported giving offers with rollovers to decreases of €30/ton within the range price. The seller commented that supply outpaced demand so he decided to apply some decreases based on his customers’ purchasing volumes. For R-HDPE black pipes PIR, however, he decided to maintain his high-end prices. Despite conceding to discounts in some cases, the recycler commented that he sold limited volumes and decreases didn’t really help speed up his sales. A converter, who reported receiving stable offers for June, stated that he might skip his purchases for recycled cargoes in July unless he manages to obtain decreases. Both sellers and buyers think that prices will follow a stable to softer trend as the current market conditions aren’t strong enough to support any increases.
For June, the R-LDPE market didn’t post any changes and tracked a mainly stable trend. The market didn’t witness a revival in trading activities contrary to expectations. A distributor, who offers R-LDPE film PIR, kept his prices stable from last month and commented that he didn’t seek any increases for June after buyers showed resistance to his slight hike requests of €10/ton in May. Moreover, demand is slow while supply is comfortable. A buyer, who skipped his purchases in May due to his sufficient stocks, purchased R-LDPE film PIR at stable levels. The buyer commented that his end product demand was stagnant in May, but he noticed a slight improvement in June. He thinks that prices for recycled material will remain stable in July as well. A recycler of post-consumer R-LDPE concluded some deals for June with rollovers from last month. The seller reported that they were expecting to see a stronger demand, but the market remained quiet due to uncertain weather conditions. Moreover, the recycler reported that some buyers tried to achieve discounts in the second half of the month, but said that he didn’t step back from his prices. However, the seller noted that he might revise his prices lower in July if the market remains weak and prime LDPE film prices register further reductions. A buyer reported skipping their purchases for R-LDPE black film PCR, having sufficient stocks. According to him, the overall supply for R-LDPE was good in the market. Expectations for July are calling for a stable to softer trend considering ample supply amidst stagnant demand.
R-PP prices remained stable in June. Prices for R-homo PP injection PIR tracked a steady trend and buyers commented that supply was good while demand was calm. Regarding July, buyers expect to see some decreases. R-PPBC injection PIR prices also remained flat from May. A recycler commented that demand was regular and even slightly better compared May, especially in the second half of the month. For July, the seller stated that he will conclude his deals within the first half of the month as many players will reduce their production in August due to the summer holidays. Moreover, the recycler stated that he is planning to keep his prices unchanged, though he didn’t exclude the possibility of downward adjustments in the July-August period if demand isn’t supportive. The outlook is stable for July while decreases are also deemed possible depending on buying interest.
Price ranges reported include an average freight cost to the customers’ location as well as duties if applicable, although VAT is not included.
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