Recycled Polymers - Europe March 2017
|Month: March 2017|
|R-PET Flakes Clear/Blue||700||890|
|R- HDPE Black Corrugated Pipes (PIR**)||840||930|
|R- HDPE Black Pipes (PIR**)||940||1050|
|R- LDPE Black Film (PCR*)||640||780|
|R- LDPE Film (PIR**)||1060||1130|
|R- homo-PP black injection(PIR**)||860||900|
|R- homo-PP injection (PIR**)||950||980|
|R- PPBC injection (PIR**)||840||1080|
* (post-consumer recycle)
** (post-industrial recycle)
March saw a new round of increases on R-PET with respect to February, although prices were reported at a rollover in a few cases, especially for light blue grade material. Clear grade material was reported with increases of up to €50/ton over last month, while light blue grade material registered rollovers to increases of up to €20/ton over February. R-PET range for clear grade is at €760-890/ton, while R-PET light blue grade range is at €700-780/ton FD. Clear material posted stronger increases due to the limited availability for this material following an increase of demand and also due to the bullish trend in the prime PET prices. A recycler commented that they asked for increases in March due to the auctions’ result at the beginning of the month and an increase of demand for post-consumer bottles while adding, “As expected, R-PET prices followed the suit of prime PET trend, especially on clear grade. Demand was higher in March with respect to the previous couple of months.” A converter in the packaging sector reported to have received offers with stronger increases from his Southern European suppliers while they were able to purchase with more limited increases from West European sources. The buyer opined, “We think that clear grade prices increased due to the higher prices of prime PET as the gap between the two products became wider.” A buyer in Germany purchased R-PET clear grade with increases of €20/ton. The buyer commented, “We purchase limited volumes of R-PET, but we aim to increase our consumption of this material.” Regarding April, players in the market think that R-PET sellers may seek further increases due to the tighter availability of post-consumer bottles and the approaching high season. However, the bearish outlook in the prime PET market may put a cap on strong increases.
R-HDPE market posted a firmer trend in March, although the increases were limited to €20-30/ton from February. Demand in the market was still reported to be stagnant as the activity was not vivid in March, although players noticed an increase with respect to February and they think that this is a good signal for April. A recycler reported to have applied rollovers to increases of €20-30/ton over February and explained that they conceded to a rollover in case of big purchases. The seller commented, “We sought increases mainly due to the bullish trend in PE market while availability is comfortable. A pipe producer reported to have paid rollovers to increases of €20/ton on R-HDPE materials and added, “Prices posted these limited increases mainly due to higher PE prices as availability is balanced with the demand. If prime PE market will see a stable trend in April, we may also see a rollover on our materials.” Expectations for April are for stability as supply and demand are balanced and the upward trend in PE market should come to an end. At the same time, players hope to see a more vivid demand ahead of the high season.
R-LDPE market tracked a divergent trend in April depending on the grade. R-LDPE Film (PIR) prices saw a stable to slightly upward trend with increases between €10-30/ton from last month. Players commented that demand was not brilliant for this grade, but limited increases were achieved due to the upwards trend in the prime PE market. Regarding R-LDPE Black Film (PCR), prices were stable to softer due to the lack of demand. A recycler commented, “We had to revise down our prices in the second part of the month as we saw an ample supply of material from Central Europe at competitive levels and we were not able to maintain our prices. Prices should have seen a relevant increase due to bullish trend of prime PE, but demand remained weak.” A buyer who purchased R-LDPE Film (PIR) said, “We paid rollovers to a small increase of €10/ton from last month, but we expect stable prices for April.” Expectations both from buyers and sellers are for a stable trend in April as the PE market may not post further increases next month, considering spot ethylene prices and supply.
Prices in the R-PP market were on an upwards trend in February, with increases between €20/ton and €40/ton from February. Players commented that supply was tighter this month, especially on certain grades. Buyers commented that they were able to cover their needs, although supply is no longer comfortable. Moreover, the bullish trend on PP prices failed to maintain prices at stable levels this month. Expectations for April are for further increases as a converter said, “Prime material will post further increases of around €20-30/ton next month, so R-PP sellers could seek a new round of increases.” A recycler reported to have applied increases of up to €40/ton, especially on natural and white grades, while prices for material of lower quality saw smaller increases. The seller commented, "We noticed a growth of demand this month and we expect that it will continue in April as well. We may seek further increases on R-PPBC Black next month while we will probably keep the prices of natural grades unchanged.”
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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