Recycled prices remain strong despite softer virgin prices.

* With recycled resin prices firm and virgin prices softening, recycled resin suppliers say the two prices are now in close proximity. However, recyclers expect it's only a matter of time before their prices begin to fall as well.

R-PET still strong

PET pricing still appears to be the most aggressive in the recycled resin arena. Prices in the last three months have gone up 2 cents to 3.5 cents/lb. Some recyclers feel strongly that the virgin prices will be flat or maybe even come down some, and R-PET pricing will inevitably follow suit. "Once virgin prices begin to soften, we'll see softening as well," says one reprocessor.

R-HDPE coming down

Virgin HDPE prices are reportedly starting to come down, but there was still talk last month of an impending hike in recycled bale prices. However, reprocessors say pricing may have reached its peak with the 2 cents/lb increases in the last quarter. Says one, "In April we saw a 3 cents drop in our reprocessed sale price, but we saw bale prices creep up a penny. Even though prices have come down some, there is so much demand for clean regrind that can replace virgin resins. More customers are saying, 'Let's try recycled.' I believe we'll still see a slight drop in May in recycled resin prices, while there will be no reprieve on scrap prices."

Another reprocessor says, "Our mixed-color pricing is coming down, but natural still remains strong. We're almost at virgin-level pricing."

R-PS & R-PVC

Polystyrene recyclers say pricing hasn't changed in the last three months. "The market has stagnated, but there is no indication that prices are sliding just yet," reports one source.

Because of market resistance to virgin PVC price increases, observers say reprocessor prices are staying put. It's also getting harder to find PVC to recycle. According to source, "Many vinyl processors are reusing their own scrap, which they wouldn't ordinarily do. Anybody would prefer to use recycled pellets over scrap, but if prices go so high, they have to do something to lower their cost."

RECYCLED RESIN PRICES
                       Pellets    Flake
                       cents/lb   cents/lb
PET Bottles (Clean)
Clear Post-Consumer    69-74      60-62
Green Post-Consumer    61-65      52-56

HDPE (Clean)
Natural Post-Consumer  50-55      39-42
Mixed Colors           43-52      34-39

Polystyrene
Post-Consumer
  High Impact
    Black              62-65      48-52
    Natural            68-72      --
  General Purpose
    Black              45-47      38-42
    Natural            55-60      42-46

Polypropylene
Post-Industrial        34-40      30-32
Post-Consumer          30-32      --

Polyethylene Film
Post-Consumer
  Stretch              28         --
  Printed/Mixed        13         --
Post-Industrial
  Printed              20         --
  Not Printed          24         --

PVC
Post-Industrial
  Flexible             55-65      --
  Rigid                60-73      --