Recycled Polymers - Europe December 2018

Month: December 2018
	€/ton	€/ton
Recycled Grades	Min	Max
R-PET Flakes Clear/Blue	900	1060
R-PET Flakes Mixed Colours	640	680
R- HDPE Black Corrugated Pipes (PCR*)	770	940
R- HDPE Black Pipes (PIR**)	1000	1060
R- LDPE Black Film (PCR*)	600	650
R- LDPE Film (PIR**)	950	980
R- homo-PP black injection(PIR**)	840	920
R- homo-PP injection (PIR**)	950	990
R- PPBC injection (PIR**)	850	1030

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

The R-PET market followed a mainly stable trend in December, after posting notable decreases in Italy and a firmer trend in Northwest Europe in November. The market stabilized on the back of more balanced dynamics, although demand remained strong both in Italy and Northwest Europe. The R-PET range in Italy was reported at €920-970/ton for clear grade on FD basis, while prices for R-PET light blue grade were reported at €900-950/ton with the same terms. As for R-PET mixed colors flakes, prices were reported stable month over month in Italy at €640-680/ton FD Italy. R-PET prices for clear grade in Northwest Europe were reported at €1020-1060/ton FD. A recycler in Italy commented, “We were able to avoid further reductions this month as the market were rather balanced. Yet, it was difficult for us selling material towards the high ends of the overall range.” A converter commented that prices remained stable due to strong demand and comfortable supply, adding that he doesn’t expect further reductions in the near and medium terms. As for expectations, players in Italy and Northwest Europe agree that a softer trend is not likely in the coming term, while the majority of them think that the market will remain mainly stable in January. Plus, both buyers and sellers concur that supply-demand dynamics will drive the market in January and in the first quarter of 2019, more than market conditions in prime PET.

Prices in the R-HDPE market followed a stable trend this month, after some softening witnessed in November. The market remained very calm in terms of trading activities while the pressure from the weakness in prime HDPE market continued to be felt by suppliers. A recycler commented, “There are no problems of availability in the market while demand is tepid. For this reason, any price increase is out of question nowadays.” A supplier also mentioned the pressure from off-spec material, which is comfortable and traded at competitive levels, considering the decreases in the prime PE market. As for January, players expect mainly rollovers, considering that it will be a short month in terms of working days and the low season. Some players don’t rule out the possibility of seeing even some reductions, considering the expectations of a stable to softer trend for ethylene contracts and prime HDPE markets.

The R-LDPE market remained mainly stable to slightly softer in December, after the notable decreases posted the previous month. Supply remains ample in the market, while the softening in prime LDPE market continued to keep a downward pressure on R-LDPE products as well. A distributor of recycled material commented, “Prices in prime LDPE market are extremely low and it is not easy to sell recycled grades with such low prices.” Expectations for the next month are calling for stability or further reductions on the heels of the stable to softer outlook reported both for the next ethylene contract settlement and for prime LDPE market.

The R-PP market posted a stable to softer trend in December as supplies remain higher than demand. A converter commented, “We were able to pay decreases of €20-30/ton this month. This is due to ample supply of off-spec material in the market that push prices down. As a consequence, the gap between off-spec material prices and R-PP has become tighter and prices of recycled material decreased as well.” A recycler sold his material with stable to slightly lower prices this month as he tried to deplete his stocks. The outlook for January is stable to softer in line with calm demand and comfortable supply.

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