Recycled prices will stay soft. (Recycle Pricing).
R-PET prices may tumble
Through October, recycled PET prices dropped only 1-2Cents/1b from the year before. But some recyclers fear more precipitous drops may lie ahead. By early November, West Coast market demand was "absolutely tanking," according to one recycler. In the first week of the month, prices there reportedly dropped 40 to 50%. "That's because the Chinese stopped buying." The East Coast market is also soft. Among other factors, automotive use of recycled PET declined along with car and truck sales. Recyclers see even weaker demand and pricing in the next couple of months. Says one, "I don't expect business to start picking up before the second quarter."
R-HDPE poised to drop?
In 2001, natural post-consumer HDPE pellets slipped about 2-3Cents/1b while flake prices remained stable. But mixed colors fell as much as 8Cents/lb. One reprocessor expected to see prices fall farther before the year's end. "There's a lot of wide-spec around," he noted.
Recycled PS prices plunged in 2001. The smallest drop was 10-11Cents/1b for black HIPS pellets, while other pellets were down 14-16Cents/lb. Recycled flake saw drops of 14 to 23Cents/lb.
"I believe the problems we're having are totally related to the overproduction of virgin resin," says one reprocessor. "There is an awful lot of wide-spec virgin on the market at very low prices. The big question in everybody's mind is how much more PS capacity is coming on early in 2002."
Asian exports have dried up, leaving a glut of scrap on the market. One recycler believes the market has bottomed out, but prices will remain flat through the first quarter.
RECYCLED RESIN PRICES Pellets Flake cents/lb cents/lb PET Bottles (Clean) Clear Post-Consumer 46-52 36-41 Green Post-Consumer 39-43 31-35 HDPE (Clean) Natural Post-Consumer 31-34 24-26 Mixed Colors 24-26 15-17 Polystyrene Post-Consumer High Impact Black 27-30 18-21 Natural 27-30 -- General Purpose Black 18-20 5-7 Natural 28-30 10-12 Polypropylene Post-Industrial 19-21 15-17 Post-Consumer 21-23 -- Polyethylene Film Post-Consumer Stretch 28 -- Printed/Mixed 13 -- Post-Industrial Printed 20 -- Not Printed 24 -- PVC Post-Industrial Flexible 32-40 -- Rigid 46-66 --
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|Comment:||Recycled prices will stay soft. (Recycle Pricing).|
|Author:||Block, Debbie Galante|
|Article Type:||Brief Article|
|Date:||Dec 1, 2001|
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