European Recycled Grades Update
|Month: November 2016|
|R-PET Flakes Clear/Blue||670||800|
|R- HDPE Black Corrugated Pipes (PIR**)||810||910|
|R- HDPE Black Pipes (PIR**)||850||1010|
|R- LDPE Black Film (PCR*)||660||830|
|R- LDPE Film (PIR**)||1050||1100|
|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)
This month post-consumer bottles prices posted a decrease over last month and for this reason R-PET market remained stable over October, with some decreases of €10-20/ton posted in a few cases. R-PET range for clear grade is at €710-800/ton, stable on the high end and with a decrease of -10€/ton on the low end. R-PET light blue grade range is at €670-720/ton, with a €10/ton decrease posted on both ends of the range. Demand was reported not to be brilliant as buyers expected to see stronger decreases on prices, considering the reductions on post-consumer bottles prices. A buyer in the food packaging sector reported to have purchased light blue R-PET with small reductions over last month, while they didn’t purchase clear grade material, which was offered at a rollover. The buyer expects to see stability in December due to the comfortable supply of R-PET. A recycler sold his material with rollovers in November, with just a small decrease of €10/ton on light blue prices. The seller commented that despite the decrease posted by post-consumer bottles’ prices in November, especially for light blue grade, they tried to maintain their prices at stable levels. The seller added that supply is good, while demand is slowing down due to the approaching year-end. For this reason, the recycler expects a calm market in December as well. Expectations for next month are for stability, as sellers aim to maintain their position towards the end of the year, while buyers think that any increase on prices would be unjustified, considering the comfortable supply and the period of the year.
During November R-HDPE market posted a stable to softer trend, due to the good supply in the market and slow trading activities. R-HDPE black corrugated pipes (PIR) remained stable over last month, with a €10/ton reduction posted within the range. A pipe producer reported to have purchased HDPE black corrugated pipe at a rollover over last month and added that demand has been weak for this month. The buyer commented that he doesn’t expect any reductions for December, although demand will remain weak due to the limited number of working days. R-HDPE black pipe (PIR) range registered a decrease of €10/ton on the high end of the range, while low end remained stable over last month. A recycler commented to have sold his material mainly at a rollover, with €10/ton decreases only in few cases. The seller reported that the activity in the market has been very slow during November and he expects the same situation for December. Moreover, the recycler commented that he expects an improvement of demand starting from February-March, but he also added that it will be difficult to increase prices, considering that recycled HDPE material is long in the market.
R-LDPE market posted a stable to softer trend in November. Reductions of €20-30/ton were reported especially on R-LDPE black film (PCR), while R-LDPE film (PIR) were reported at stable levels on the low end of the range and with reductions on the high end. A distributor of both products reported to have sold R-LDPE film PIR with reductions over last month, as they stood on the highest level of the range, while he applied smaller reductions of €20/ton on R-LDPE black film (PCR) prices over last month. A recycler reported to have applied rollovers to decreases of €30/ton on R-LDPE black film, while he applied only small decreases of €10/ton on the clear grade. The seller commented that demand has been weaker this month, both from pipes producers and from the packaging sector. Moreover, the recycler noticed a stronger demand for black film material, with respect to the clear grade. He added that supply is ample in the market and this factor doesn’t help them to maintain their position in the market. Regarding December, the recycler expressed pessimistic expectations as it will be a short month due to Christmas festivities, while he hopes to see a revival in the market starting from January-February. Buyers reported a very calm situation in the market amidst weak demand and ample supplies, and they hope to see a more vivid market starting with the new year.
This month R-PP tracked a stable trend over October. Both sellers and buyers reported a good availability of material in the market, while demand has been weak. A compounder reported that prices remained stable with regards to last month’s levels and commented that they purchased limited volumes of recycled material as they found more competitive prices for near to prime materials. The buyer added that he expects a stable trend towards the end of the year. Another buyer reported to have purchased R-PPH black injection (PIR) at stable levels over last month. The buyer added that supply was comfortable for this material, although he purchased in order to cover their needs only as he didn’t want to stock up material. A recycler reported to have sold their material at a rollover for November. The seller commented that the market has been stagnant this month, and demand was weaker than in October. The recycler expects a stable trend also for December, because supply is comfortable in the market, while trading activity will see a slowdown next month due to the limited number of working days for the year-end festivities.
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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