Will increases in Türkiye’s recycled markets gain speed in February?

Türkiye’s recycled markets have cautiously turned up after experiencing declines throughout Q4 2024. Although rising costs and slight gains in the virgin PP, PE, and PET markets supported recycled prices, muted demand limited the size of the gains. Recyclers will keep a close eye on the virgin markets as well as the state of demand to get a better hint for the future trajectory of the market.

Rising costs and bale prices support R-PET

Following a bearish trend for the third month in a row in December, R-PET markets witnessed slight increases this month in line with higher costs. Moreover, domestic post-consumer bottle (PCB) bale prices recorded fresh increases which lifted the market, albeit slightly. Small gains in prime PET bottle prices also contributed to the firmer sentiment.

A recycler said, “In addition to the impact of rising bale prices, local freights for nearby regions recorded some increases, becoming one of the factors leading to some upward movement in the recycling market.”

Players mostly concurred on the fact that the effects of cost support will be more clearly felt in the coming month, is sustained, as a side note.

R-PP and R-PE rise, yet demand fails to catch up

Sentiment for both R-PP and R-PE markets slightly recovered this month. Market players mainly attributed this reversal to the increasing costs, not to mention small gains in virgin markets driven by higher oil futures earlier this month. Brent crude oil prices, rising above the $80/bbl threshold in the early month before softening as January wore on.

Although sellers applied modest hikes on their offers, they admitted that demand was not strong enough to lead to larger price increases. “We opted to apply some increases in line with the rising minimum wage and costs. Nonetheless, demand failed to catch up with the upward trend amid stable orders for this month,” opined some recyclers.

Expectations call for further hike attempts in February

Looking ahead, players do not rule out the possibility of further increases regardless of the product considering the persisting cost support. Should virgin PP, PE and PET prices post further increases, this may exert a significant influence on the recycling market as well. On the other hand, the approaching month of Ramadan may weigh on activity.

“Our eyes will remain on virgin markets, where sellers planned to seek new hikes, especially for PP and PE,” opined some recyclers.

Nevertheless, demand will remain a key factor to be closely monitored by recyclers in determining prices. Given the economic headwinds at home, a possible lack of significant changes in demand could limit potential increases.

As a side note, Turkish recyclers should monitor the nearby European markets, where prices followed a stable to slightly firmer trend over the past month. A player said, “It remains to be seen whether export demand will pick up or not while the upcoming scene in Europe may play a role in our business performance.”