EU Recycled Plastic Market Battled Weak Demand, Low-Cost Virgin Prices in June
The European recycled plastics spot market remained largely subdued in June this year, with limited trading activity, while pricing continued to echo movements in virgin polymer markets, according to sources.
Demand remained weak across the majority of the recycled polymers OPIS assesses, with little improvement from May, as buyers continued to purchase on a hand-to-mouth basis amid challenging end-user demand conditions.
Market participants remained focused on inventory management ahead of the summer holiday period, with many delaying purchases in anticipation of further price declines. Supply remained ample throughout the month, with recyclers continuing to face pressure on margins from competitively priced virgin polymers and an influx of lower-cost imports.
Mixed Pricing Trends Seen for June
Price movements varied by polymer grade. Recycled polypropylene black pellet (rPP) fell 3.3% from the final week of May to €960-€970 ($1,096-$1,108)/metric ton DDP Northwest Europe (NWE) by the end of June.
Recycled high density polyethylene (rHDPE) edged around 2% lower during the first week of June, decreasing a further 0.5-2% in the second week of June, where it remained across the grades OPIS assesses. By month-end, OPIS assessed grey pellets at €1,111-1,121/mt, white pellets at €1,500-1,510/mt and natural pellets at €1,705-1,715/mt DDP NWE.
Recycled low density polyethylene (rLDPE) pricing fluctuated throughout the month, ending June at €803-813/mt DDP NWE for black pellets and €849-859/mt DDP NWE for grey pellets. Recycled polyethylene terephthalate (rPET) prices also fluctuated throughout June, with flakes assessed at €1,331-1,341/mt DDP NWE and pellets at €1,718-1,728/mt DDP NWE at month-end.
Several industry developments took place throughout June. In Spain, a pilot plant project opened to test a new mixed plastic waste recycling process. Force majeure activity also remained in focus, with MOL Petrochemical extending its declaration across all polymer products following a cracker explosion.
Regulatory and investment activity also continued, with the European Union approving the $2.2 billion TotalEnergies–Masdar joint venture, reinforcing ongoing investment in the energy transition.
Looking ahead, further decreases in price are anticipated on the European spot market throughout July as the upcoming holiday shutdown period approaches.
“The European summer holiday shutdown typically occurs in August, but there are several indications that due to the spike in pricing earlier in the year, the shutdown period has come early,” one source told OPIS. “Buyers are holding off purchasing material as they believe the longer, they do, the faster prices will come down.”
With players maintaining their focus on inventory management, little indication of buying interest on the spot market is anticipated throughout July.
–Reporting by Ellis Nicoll, enicoll@opisnet.com; Editing by Rob Sheridan, rsheridan@opisnet.com