Recycled Polymers - Europe November 2017
|Month: November 2017
|R-PET Flakes Clear/Blue
|R- HDPE Black Corrugated Pipes (PCR**)
|R- HDPE Black Pipes (PIR**)
|R- LDPE Black Film (PCR*)
|R- LDPE Film (PIR**)
|R- homo-PP black injection(PIR**)
|R- homo-PP injection (PIR**)
|R- PPBC injection (PIR**)
* (post-consumer recycle)
** (post-industrial recycle)
The R-PET market remained bullish in November on the back of good demand and prices posted increases of up to €50/ton with respect to October. The R-PET range for clear grade was reported at €890-960/ton FD, up €30/ton on the low end and €10/ton on the high end. Prices for R-PET light blue grade recorded increases of up to €50/ton to be reported at €830-890/ton with the same terms. Supply for R-PET was reported to be not that comfortable recently, even though availability is traditionally ample during this time of the year. A recycler commented, “We sold out our allocations for November without facing any difficulty despite increases. We had to apply further increases with respect to October as COREPLA auctions were settled higher and supply is not ample.” On the buyers’ side, converters agreed on the fact that this is an unusual situation for R-PET during this time of the year while they also believe that such increases are not fully justified under the current market conditions. A bottle manufacturer commented, “We paid increases of up to €30/ton and it is difficult to find prices below the €900/ton threshold. We don’t expect to see a reversal of the trend before the year-end.” Expectations for next month call for a stable to firmer trend as players don’t expect a shift in the sentiment for December especially if demand remains good and prime PET market follows a stable trend as well.
The R-HDPE market followed a softer trend in November with decreases of €10-20/ton from last month. A recycler remarked that the market is under the pressure of seasonality and ample supplies. The seller commented, “Demand in Italy is traditionally slow in this period of the year. It is difficult to decide on our strategy as buyers prefer to buy on a hand to mouth basis.” A pipe manufacturer reported that he purchased the material he needed with €20/ton decreases over October while he expects a similar trend for next month. A buyer reported to have purchased post-consumer HDPE at a rollover while he obtained small discounts for post-industrial material. The converter commented, “We don’t expect major variations in December. We will stop production early in the month and we will limit our purchases as we want to close the year with low stocks.” According to players, the bearish trend of prime PE is also supporting the decreases in the R-HDPE market. Expectations call for a similar outlook for December with unpromising demand towards the year-end on one hand and comfortable supplies on the other hand.
The R-LDPE market followed a stable to slightly softer trend in November; yet, some decreases reported within the price ranges. A distributor in Italy reported to have sold his volumes at a rollover, commenting that demand has been weaker this month and supply remains comfortable. A buyer purchased R-LDPE film (PIR) from his regular supplier at a rollover on the high end of the range. However, the buyer reported to have received even lower offers from different suppliers, but he refused them as the quality was not suitable for his applications. A converter paid small decreases for November and he commented that they will limit their purchases next month due to the limited activities ahead of the Christmas festivities. As for December, players are not expecting a shift in the trend towards the end of the year. According to both buyers and sellers, prices may follow a stable to softer trend also for next month, considering weak demand in this period of the year and the limited number of working days in December.
R-PP prices saw a stable to softer trend in November, with small decreases of €10-20/ton in some cases. A compounder reported to have purchased material at stable prices and added, “We think that supply is ample in the market as we received many offers from different suppliers.” A buyer, who paid rollovers to small decreases, commented that demand is calm in this period of the year while supply is comfortable. Players expect to see a similar trend in December as well, considering the limited working days.
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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