European Recycled Grades Update
|Month: August 2016|
|R-PET Flakes Clear/Blue||680||810|
|R- HDPE Black Corrugated Pipes (PIR**)||840||940|
|R- HDPE Black Pipes (PIR**)||870||1070|
|R- LDPE Black Film (PCR*)||700||840|
|R- LDPE Film (PIR**)||1050||1120|
|R- homo-PP black injection(PIR**)||830||870|
|R- homo-PP injection (PIR**)||910||940|
|R- PPBC injection (PIR**)||820||1030|
* (post-consumer recycle)
** (post-industrial recycle)
The R-PET market tracked a stable to softer trend in August, remaining under the downward pressure of virgin PET. The R-PET range for clear grade is at €740-810/ton, while for R-PET light blue grade is at €680-740/ton. Both grades recorded a decrease of €10/ton on the low end of the ranges while the high ends remained stable from July. The majority of deals were closed at the beginning of the month, as several companies in the packaging sector were closed for at least a couple of weeks during August due to the summer holidays. As a result, trading activities were calm this month. A recycler reported selling his allocation with rollovers at the beginning of August. The seller decided not to concede to any discounts for now, seeking to preserve his margins. He also expressed his concerns about the weak trend of prime PET, which maintains its competitiveness against clear grade prices. A packaging producer reported purchasing clear and light blue R-PET from a rollover to decreases of €10/ton from last month. The buyer complained about offers at €750/ton for clear grade, arguing that lower prices should be available for this material considering the bearish trend of prime PET. Supply was said to be comfortable while players don’t expect to see any strong changes next month.
The R-HDPE market was calm in August as several companies were closed for two to three weeks due to the summer holidays and purchased less volumes than usual. Therefore R-HDPE prices were stable to softer, with reductions of up to €20/ton being reported from July. R-HDPE black corrugated pipes (PIR) prices remained stable on the low end while the high end of the range posted a decrease of €10/ton. Players reported closing their deals at the very beginning of the month prior to their holidays. Demand was said to be mute for three weeks of August as the majority of the companies, including recyclers, suspended their operations. A converter purchased very limited quantities of recycled material this month due to slow demand during the summer holidays. The outlook for September is still unclear. Some buyers hope to achieve further small discounts while others think that prices will remain stable.
August was a calm month also for the R-LDPE market considering a general slowdown in trading activities due to the summer lull. R-LDPE prices were a stable to softer. Decreases of up to €30/ton were reported for the low end of R-LDPE film (PIR) whereas the range for R-LDPE black film (PCR) remained stable on both ends. A producer of R-LDPE black film (PCR) reported maintaining their prices this month, commenting that demand was rather strong on certain products linked to the tourism sector while their availability was not ample. Regarding September, the recycler aims to apply an increase of €10/ton if demand remains good. A distributor of R-LDPE film PIR reported concluding some deals with rollovers from July at the beginning of the month. The seller stated that some of his customers asked for some discounts, but he was not willing to concede to further reductions this month. The seller added that supply is comfortable while he is still unsure about the September outlook.
The trend in R-PP market was mostly stable throughout August. Players reported that the market was quite calm due to the summer lull. A recycler acknowledged that demand was muted this month and said that he sold only limited quantities prior to the holidays at stable levels from July. A compounder reported paying stable prices for recycled PP this month, purchasing only small volumes due to the holidays. The buyer heard about talks of increases for PP prices in September, but he thinks that recycled cargoes are unlikely to register gains for the time being. Another buyer reported receiving stable offers for R-PP and commented that he had to evaluate whether to make new purchases or not considering the limited trading activities during August. Expectations are calling for limited changes during September.
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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