Recycled prices stable ... for now.

* Recycled materials, in most cases, are still a bargain, but low demand has kept prices stable for the time being, although some prices rose about 2 cents/lb in the last quarter. Most experts believe it will be more of the same in the next quarter.

New capacity for some virgin resins coming on stream could push down prices and create overcapacity in recycled product. That happened last fall, when virgin prices fell and processors backed off buying recycled resins. Chinese purchasing of recycled materials for export has a big effect on pricing and availability here, but this market has been in flux for the last few months. Recyclers say the Chinese government imposed a new quota system and higher duties on imports of scrap.

Post-consumer collections have increased this year, for the first time in a long time, says one buyer of bales. "We went through a period of four or five years when collections did not increase. We have a lot of catching up to do."

R-PE prices soft for now

Recycled polyethylene prices have gone up about 6 cents/lb this year. However, R-LLDPE prices have now started to drop because a lot of big buyers stayed out of the market this past fall, according to one scrap buyer. "LDPE is selling in the 46 cents to 49 cents/lb range and LLDPE mixed resins are in the 40 cents to 44 cents/lb range. But with prime resins selling at 55 cents/ lb or higher, people will be looking to buy regrind again," he said.

Right now, virgin suppliers are seeking a price increase and they will likely get it because of rising feedstock demands, observers say.

R-PET

Post-consumer green PET prices have gone up while post-consumer clear prices have remained fairly stable. Green pellets are up about 2 cents/lb on average. But recyclers are concerned that prices could turn down sharply because of massive new virgin capacity generating excess supply. "There are projections that the bottom is going to fall out of this market," notes one recycler, who adds that some virgin capacity expansions have been slowed down.

RECYCLED RESIN PRICES

                        Pellets    Flake
                        cents/lb   cents/lb

PET Bottles (Clean)
Clear Post-Consumer     64-67      54-57
Green Post-Consumer     52-56      42-45

HDPE (Clean)
Natural Post-Consumer   52-58      44-46
Mixed Colors            41-47      29-31

Polystyrene
Post-Consumer
  High Impact
    Black               58-62      53-56
    Natural             69-72      -
General Purpose
    Black               43-45      35-40
    Natural             60-65      42-46

Polypropylene
Post-Industrial         36-39      33-45
Post-Consumer           51-54      47-52

Polyethylene Film
Post-Industrial
  LDPE                  53         --
  LLDPE                            --
    Clear               43
    Mixed color         --         --

PVC
Post-Industrial
  Flexible              45-55      37-39
  Rigid                 60-73      36-47