European Recycled Grades Update
|Month: October 2016|
|R-PET Flakes Clear/Blue||680||800|
|R- HDPE Black Corrugated Pipes (PIR**)||810||910|
|R- HDPE Black Pipes (PIR**)||850||1020|
|R- LDPE Black Film (PCR*)||690||830|
|R- LDPE Film (PIR**)||1050||1120|
|R- homo-PP black injection(PIR**)||830||870|
|R- homo-PP injection (PIR**)||890||930|
|R- PPBC injection (PIR**)||820||1030|
* (post-consumer recycle)
** (post-industrial recycle)
Despite the increase of post-consumer bottles prices in October, R-PET market remained stable for another month, mainly due to the weak demand. R-PET range for clear grade is at €720-800/ton, stable on the high end and with a small decrease of 20€/ton on the low end. R-PET light blue grade range is at €680-730/ton, stable on the low and on the high end of the range, although this month more prices at or near to the low end were reported with respect to the last month. While demand was reported to be weak, supply in the market was comfortable, according to players in the market. A recycler reported that they sold their material at stable levels over September. The seller commented that post-consumer bottles’ prices increased in October and it halted the downward pressure on R-PET prices. However, the seller complained that demand is still weak and they are not very optimistic regarding November. A buyer, who purchased his material in the second part of the month at stable levels over September, reported to have heard that post-consumer bottle prices have increased, due to a lower consumption during summer period with respect to the same period of last year. The buyer commented that this increase halted the decreasing trend of R-PET prices, especially for light blue grade. The buyer complained that light blue prices remain too high compared with clear grade prices. A buyer in the packaging sector purchased r-PET on a regular basis from rollover to small decreases from last month. However, the converter complained that prices in the NWE market are considerably lower than in the Italian market. Regarding November outlook, expectations are not very optimistic, especially regarding demand. For this reason, a recycler expressed his expectations of stability also for next month.
R-HDPE market witnessed a downward trend in October, mainly due to the general weak demand in the market. Decreases up to 30€/ton were reported both from sellers and buyers. R-HDPE black corrugated pipes (PIR) registered a decrease of 30€/ton both on the low and on the high end of the range. A recycler was able to sell all of his volumes for October, although he had to apply some decreases of up to 30€/ton in order to speed up his sales. The seller also commented that they preferred to concede to limited decreases in order not to bring down price levels furtherly. A pipe producer reported to have purchased HDPE pipe black corrugated with rebates of 20-30€/ton for this month. The buyer stated that demand remains weak and he thinks that in November suppliers will apply further decreases, although of a lower entity with respect to the current month. Regarding November outlook, expectations are calling for a stable to softer trend. Indeed, players don’t expect an improvement of demand, considering the period of the year, while sellers hope that they will be able to maintain their prices, without conceding to further reductions.
The trend in the R-LDPE market in October was stable to softer. R-LDPE black film (PCR) range posted from rollover to decreases of 10-20€/ton from September. Both the low and the high end of the range saw a decrease of 10€/ton over last month. R-LPDE film (PIR) prices remained stable, although some decreases were reported within the range. A distributor of both products reported that they sold R-LDPE film (PIR) at rollover over last month, as they had limited availability of this product. Moreover, the seller added that they were not able to sell R-LDPE black film (PCR) as they didn’t have any allocation for this month. A recycler reported to have sold R-LDPE black film (PCR) with reductions of 10-20€/ton from last month. The seller reported that demand saw a drop in October, as the market is very calm and buyers had already good stocks. The seller hopes to see a revival in the market in November before the last month of the year, when buyers usually prefer to avoid building stocks. Expectations are calling for a stable to softer trend also for next month.
R-PP market in October remained mainly stable, although both buyers and sellers reported that demand has been very weak this month and they are not very satisfied with their business. A buyer purchased R-PPH black injection (PIR) from rollover to small decreases (10€/ton) over last month. The buyer commented that recycled PP prices are not competitive at the moment, as they have a reduced gap over prime PP material prices. Regarding November, the buyer expects a stable trend. A recycler reported to have sold their material at rollover for October. The seller complained that demand has been very weak this month, but he added that they decided to avoid decreases, in order to maintain their position. Regarding November outlook, the recycler thinks that the market will remain stable, while he doesn’t expect any improvement in demand. Players in the market reported that supply is comfortable in the market and some buyers expect to see some decreases next month, considering the general low demand and the approaching year end.
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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