R-PET's price premium over virgin material widens to new all-time high

In February, demand recovered sufficiently to allow all plastics recyclers to raise prices
.
Among them, the price of R-PET has increased the most, and the price of transparent flakes and transparent food-grade particles has increased by 100 euros / ton, which completely covers the increase in the procurement cost of bottle waste
.
The price of clear R-PET food grade pellets is now almost €400/t higher than virgin material, and the price of clear R-PET flakes is now only slightly less than virgin material
.

The supply of R-PET remains tight due to the shortage of waste plastic bottles
.
The availability of production waste for most other types of recycled plastics has improved slightly, mainly due to lower exports of plastic waste to Asia
.

Brand owners are constantly launching new sustainable projects, but their growing demand for R-PET is often not met due to material shortages
.

Prices for all other recycled plastic products rose in February, but in most cases they weren't enough to offset higher material, energy and logistics costs
.

This month, plastic recyclers raised prices again, partly to compensate for higher costs of materials and energy, and for the most part, they succeeded
.
Demand for R-PET remains high, while orders for other recycled plastic types are reporting a slight uptick
.

Recycled polyethylene terephthalate ( R-PET )

Prices of R-PET transparent flakes and food-grade pellets rose by triple digits in February on strong demand and limited supply
.
The €100/t price increase means a substantial increase in profit margins relative to the higher purchase costs for clear flakes of €44/t
.
The increase in the price of coloured flakes also outweighed the €25/t increase in the purchase cost of mixed bottle waste
.

The supply of PET bottle scrap is still very limited, so the supply of R-PET remains tight
.
At the same time, demand for R-PET continues to grow, with more and more brand owners frustrated by the limited availability of the material for new sustainability projects
.

R-PET recyclers are raising prices further in March as demand continues to be strong and supply is tight
.
Food-grade materials are now much more expensive than virgin materials
.

Recycled Low Density Polyethylene ( R-LDPE )

In February, LDPE recyclers managed to push prices higher to make up for higher material and energy costs
.
The availability of scrap has increased due to a sharp drop in the amount of plastic scrap exported to Asia
.
While the supply of cheap virgin materials has improved, the demand for recycled products continues to grow
.

In March, recyclers called for further price increases to make up for the increased costs
.

Recycled High Density Polyethylene ( R-HDPE )

In February, recyclers were able to pass on some of the increase in energy and logistics costs for blow-molded materials
.
Injection molding prices increased slightly less due to competition from lower-priced virgin materials
.
The supply situation for production waste has improved, while demand for R-HDPE remains healthy
.

In March, recyclers tried to pass on the remainder of the cost increase that could not be recovered in February
.

Recycled Polypropylene ( R-PP )

R-PP prices rose by €20-25/t in February after the rollover the previous month
.
Production scrap supplies are tight, but there is still enough material to meet contractual obligations
.
R-PP demand has recovered sharply after a slow start to the year, but demand from the auto sector remains well below what is usually expected
.

As demand improved, recyclers demanded higher prices in March to cover rising costs
.

Recycled High Impact Polystyrene ( R-HIPS )

In February, recyclers were only able to absorb some of the higher costs due to competition from virgin materials
.
Availability of production scrap has improved due to lower exports while contractual obligations are largely fulfilled
.
Demand picked up in February after slow growth at the start of the year
.

In March, as demand returned to more normal levels and costs rose, recyclers pushed prices up further
.