Recycled Resin Prices Flatten Out.

* It looks like recycled resin prices have hit the top of the rollercoaster. High virgin-resin prices stimulated demand for recycled materials, but price increases have now slowed almost to a halt. One reason is that wide-spec material, which had been scarce this spring, has begun to reemerge--particularly in PET and polystyrene.

PET exports lift prices

Despite strong PET demand, prices for recycled material have stabilized since wide-spec resin availability has loosened up. RPET prices on the West Coast have been buoyed by Asian importers that reportedly have been paying as high as 1819[cts.]/lb, whereas typical East Coast prices are more like 16[cts.]/lb. However, industry sources think export prices are topping out.

HDPE may soften soon

HDPE flake prices saw the largest price increases in the second quarter, when natural post-consumer material went up as much as 6[cts.]/lb in some cases.

Strong demand was the driving force, recyclers and processors say. "Usually there is a slowdown in demand during the summer, but that didn't happen this year. However, the general feeling is that the market will start to soften a bit come the first of September," says one recycler.

PS stable for now

Recycled polystyrene prices have peaked. Both prime and recycled resin figures held stable through the summer, but are not expected to drop in the short term.

One recycler reports that demand remains strong but greater wide-spec availability is affecting the supply/demand balance. "Although there is no opportunity for further advances in prices, I am not running into any resistance as yet. But because of wide-spec availability, that may begin to change," this source says.