Recycled Polymers - Europe August 2017
|Month: July 2017|
|R-PET Flakes Clear/Blue||770||930|
|R- HDPE Black Corrugated Pipes (PCR**)||720||890|
|R- HDPE Black Pipes (PIR**)||960||1020|
|R- LDPE Black Film (PCR*)||600||720|
|R- LDPE Film (PIR**)||1020||1050|
|R- homo-PP black injection(PIR**)||830||900|
|R- homo-PP injection (PIR**)||930||960|
|R- PPBC injection (PIR**)||860||1060|
* (post-consumer recycle)
** (post-industrial recycle)
The R-PET market saw a stable to slightly firmer trend in July, with increases not stronger than €10/ton. The R-PET range for clear grade was reported at €840-930/ton while R-PET light blue grade range was reported at €770-850/ton, both on FD basis. Stronger increases seem to have come to a halt this month, mainly due to the balanced supply-demand dynamics. A recycler commented, “We sold our material mainly with rollovers and small increases of €5-10/ton in a few cases. Supply was more ample in July and demand was stronger than in June. Therefore, we are satisfied with our business for this month.” Buyers concluded more deals in July with respect to the previous month, but deals were closed mainly in the middle or towards the low end of the ranges. A converter said, “We purchased some material from West European sources as South European materials were too expensive and high end offers for clear grade was unworkable as the gap between prime PET narrowed considerably.” A bottle producer reported to have skipped their R-PET purchases for this month as they were already covered, adding, “Prices should see some relief starting from August or September.” Expectations are for a stable trend in August. Meanwhile, supply will remain comfortable thanks to the ample availability of post-consumer bottles, considering hot weather and higher consumptions of beverages during the summer period.
The R-HDPE market followed a stable to softer trend in July, mainly due to the strong discounts in the prime HDPE market. Post-industrial materials posted stronger falls as it was the case in June. R-HDPE black pipes posted a decrease of €10-20/ton on both ends. Post-consumer products registered rollovers to €10/ton decreases. A recycler selling both materials commented, “Demand has been good in July although we expected a better performance with respect to June. Post-industrial material was under downward pressure from prime PE and we expect that prices will see further decreases in August, when we will sell a quarter of our regular allocations as we will stop production for summer holidays.” A pipe producer reported to have obtained a decrease of €20/ton over June and noticed good demand for their business. Regarding August, expectations are for a stable to softer trend as supply remains comfortable while demand should see a slowdown as many companies will close for summer holidays, skipping their purchases in August.
The R-LDPE market was on a downward trend in July, with decreases between €10/ton and €50/ton from last month. As for R-LDPE, decreases were fiercer for post-industrial material, which faced a stronger downward pressure from prime LDPE market with respect to the post-consumer products. A distributor of post-industrial R-LDPE applied a decrease of €50/ton as he stood on the high end of the ranges and commented, “Demand was good in the first part of the month, but it saw a slowdown after buyers have built their stocks.” A buyer of post-industrial R-LDPE reported to have already built some stocks for August, when they will probably skip their purchases of recycled materials, paying decreases of €20/ton. A recycler of post-consumer R-LDPE material reported being satisfied with demand for July thanks to the high demand from the tourism sector. He expects slower activity in August, but he is still optimistic as the tourism season will extend into September. Expectations are for stability or small additional decreases.
The R-PP market remained stable or witnessed small decreases in July. Players reported good demand in the market and it was in balance with sufficient supplies. A converter reported, “We didn’t have face any difficulties in finding material, but demand was very good and we heard that supply is not so ample anymore.” Another buyer reported small declines of €10/ton and commented that the market was balanced in July. A recycler kept his prices stable for R-PPBC Black while he conceded to a small discount on natural grade. Expectations are for a stable trend in August, when many converters and recyclers will halt their production for 2-3 weeks due to the summer holidays.
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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