Recycled Polymers - Europe February 2017
|Month: February 2017|
|R-PET Flakes Clear/Blue||700||840|
|R- HDPE Black Corrugated Pipes (PIR**)||830||910|
|R- HDPE Black Pipes (PIR**)||920||1020|
|R- LDPE Black Film (PCR*)||660||800|
|R- LDPE Film (PIR**)||1050||1120|
|R- homo-PP black injection(PIR**)||840||880|
|R- homo-PP injection (PIR**)||920||950|
|R- PPBC injection (PIR**)||830||1020|
* (post-consumer recycle)
** (post-industrial recycle)
R-PET market continued to follow a firmer trend in February, although limited increases passed on deals with regards to January and even with rollovers in a few cases. Clear grade material posted increases of €10-20/ton over last month, while light blue grade material witnessed rollovers to increases of up to €20/ton from January. R-PET range for clear grade is at €730-840/ton, while R-PET light blue grade range is at €700-760/ton. A recycler reported to have sold his material with increases of €10-20/ton from January. The seller opined, “We noticed a better demand at the beginning of the month with respect to the previous months. We think that it is mainly due to the rapid increases posted by prime PET. Our availability is good and it remains comfortable in the market.” A buyer in the packaging sector reported to have purchased the volumes they needed at the beginning of the month and that they were able to obtain stable prices over January. The converter commented, “The gap between R-PET and prime PET is getting wider, this is the reason why we prefer to purchase R-PET at the moment, when it is suitable for our applications.” Another buyer in the packaging sector reported to have paid increases of €10-20/ton over January and opined, “We think that R-PET material is under pressure from the rising trend of prime PET. For this reason, we think that prices may continue to rise. However, supply is still comfortable in the market and therefore price increases will remain limited.” Players in the R-PET market concur that the R-PET trend will remain bullish in March as expectations are firmer on prime PET and demand should improve due to the approaching high season. However, availability in the market is balanced and this could put a cap on strong hike requests.
The R-HDPE market witnessed a stable to firmer trend in February. Players concurred that the market saw only limited increases this month as supply remained comfortable while demand has been regular, albeit not brilliant. Prices were reported with rollovers to increases of up to €30/ton for February. A recycler reported to have applied rollovers to increases of €20-30/ton from January, depending on the grade. The seller commented, “The outlook is bullish also for March as upstream costs are increasing and recyclers will need to ask for higher prices to cover their production costs. Our demand was good this month, although it was lower compared to the same period of the previous years. We hope to see a revival of demand in line with the beginning of high season in the construction sector.” A pipe producer who was able to purchase at a rollover in February expects an increase for March in line with the improving demand. Another buyer reported to have paid rollovers to small increases of up €30/ton for recycled material and commented, “These increases are still acceptable, while demand-supply dynamics in the market are balanced. We expect to see an upward trend in March, considering consecutive increases in the prime PE market, although we are not concerned regarding the size of the possible increases as we think that they will remain limited.” Expectations are for a firmer trend in March, although players don’t expect strong increases due to the comfortable supply levels in the market and constant demand.
Also R-LDPE market witnessed a similar trend with rollovers to slight increases for February. A distributor sold his allocation of R-LDPE Film (PIR) with increases of €20-30/ton over last month and commented, “Supply is still good for this material and therefore we applied only limited increases.” A recycler, meanwhile, sold his material at rollovers this month and commented, “We sought an increase of €20-30/ton at the beginning of the month, while in the second part of the month the market saw an increase in supplies from abroad and we were not able to obtain hike requests. For this reason, we decided to keep prices unchanged, although our customers tried to ask for a discount on prices. We aim to maintain a firm stance also for next month.” The recycler added that they hope to be able to obtain price hikes for March thanks to the bullish trend of prime LDPE and the beginning of high season.
R-PP market followed a slightly firmer trend in February. The majority of the players in R-PP market reported increases from €10/ton to €40/ton, depending on the grade. A recycler reported to have applied a small increase of €10/ton only on the low end of their price range and commented, “We heard that other suppliers applied stronger increases, but we decided to keep our prices mainly stable as we still have good stocks. Our demand is stable but not brilliant and we preferred to destock some material this month. We aim to seek increases of €30-40/ton for March, but we will wait for the feedback from our customers.” A compounder reported to have purchased regular volumes for February, paying increases of €30-40/ton from last month. According to the buyer, the increase is linked to the firming prices of prime homo-PP. The buyer said, “We expect to see a new round of increases of R-homo PP (PIR) as the pressure on prime material remains strong.” Supply remains comfortable in the market; however, some players expect to see new increases in March due to the bullish trend in the prime homo-PP market for the last few months.
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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