Recycled Polymers - Europe October 2017

Month: October 2017
	€/ton	€/ton
Recycled Grades	Min	Max
R-PET Flakes Clear/Blue	780	940
R- HDPE Black Corrugated Pipes (PCR**)	710	870
R- HDPE Black Pipes (PIR**)	980	1010
R- LDPE Black Film (PCR*)	600	700
R- LDPE Film (PIR**)	1000	1050
R- homo-PP black injection(PIR**)	830	900
R- homo-PP injection (PIR**)	930	960
R- PPBC injection (PIR**)	840	1060

* (post-consumer recycle)
** (post-industrial recycle)


The R-PET market continued to follow a stable to firmer trend in October, mainly thanks to good demand for this product. The R-PET range for clear grade was reported stable to €20/ton higher at €860-940/ton while R-PET light blue grade range was €10-15/ton higher at €780-850/ton, all on FD basis. Players reported that prices posted slight increases over September despite the lower settlement of COREPLA auctions and comfortable supplies as demand exceeded expectations in October, especially for light blue grade. A recycler commented, “R-PET prices tracked an opposite trend to the weaker results of COREPLA. For this reason, we expect that demand will set the tone of the market in November as well.” A buyer in the packaging sector affirmed, “We purchased some volumes despite increases; yet, we hope to see downward corrections in November as prices are too high, considering that prime PET is offered below the €1000/ton threshold in the import market.” Expectations for November call for a stable to slightly softer trend, considering the low season and bearish trend of prime PET while supply is reported to be sufficient. However, some players think that good demand might support sellers to maintain their current levels, avoiding notable decreases.

The R-HDPE market tracked a stable to softer trend also in October in the midst of weak demand and ample supplies. A recycler commented, “We tried to maintain our prices at stable levels for post-industrial R-HDPE material whereas we had to concede to €10-20/ton discounts on our post-consumer R-HDPE material. We were expecting to see better demand for October.” A pipe manufacturer reported that there was a slowdown in the pipe sector in line with the low season while COREPLA auctions were settled lower for October. The source commented, “We were able to pay rollovers to €10-20/ton decreases over September despite initial hike requests in early October in line with the upsurge of prime HDPE.” As for November, both buyers and sellers agree on a stable to slightly softer trend as demand is expected to remain weak while supply is comfortable.

The R-LDPE market tracked a similar trend to September, with prices being reported stable to €20/ton lower from last month. Weak demand and comfortable supplies paved the way for further small decreases on R-LDPE prices for October, as both sellers and buyers affirm. A recycler commented, “We were hoping to see a more stabilized market in October, considering the upsurge on prime LDPE in the previous months. However, demand has been below our expectations while supplies are ample considering the fact that large volumes have been directed to Europe as China will ban imports of scrap plastics soon.” As for next month, players expect to see a stable to softer trend, similar to October, as supply and demand dynamics are not expected to change in the near term.

R-PP prices remained mostly stable with respect to September with the exception of only a small decrease on the low end as supply was reported to be ample while demand has started to cool off. A recycler reported, “We noticed a slowdown of demand during the month. We hope to maintain stable prices in November, but the outlook for next month will mainly depend on the state of demand.” Buyers reported to have purchased at stable prices and added that supply is ample for R-PP. For this reason, it is difficult for suppliers to seek for increases, they opined. A buyer commented, “We expect to see a stable trend towards the end of the year. It will be difficult to see a rebound in prices with weak demand on one hand and comfortable supplies on the other hand.”

Price ranges reported include an average freight cost to the customers’ location as well as duties if applicable, although VAT is not included.