Recycled resin prices firming up.

* Since the fourth quarter of 2006, prices have risen for most recycled resins or at least stayed the same. No declines are expected in the near term, but there are pressures that could drive prices upward.

R-PS demand slow

Although recycled PS declined a few cents/lb after November, it looks like prices will remain stable and could rebound somewhat in the coming months. While first-quarter demand for recycled PS is strong this time of year because of the horticultural market, that demand is softer than in previous years. One recycler attributes this to ample supplies of good-quality off-spec resin on the spot market at 69 cents/lb.

Also, last year's high PS prices led to a lot of materials substitution, which is hurting demand now.

Pressure on R-PET prices

Recycled PET prices have been mostly stable in the last couple of months. One reprocessor says, "We went down a little in price this January only in response to what virgin resin was doing." Another source added, "Curbside bale pricing has moved up, so we're paying more for our raw materials." It appears that export demand from China also is strengthening prices. "Regardless of what happens on the virgin resin side, I can't go down in price now," another source said.

Wellman's shutdown of its PET recycling plant is said to be having little effect on the market. "Wellman's heyday was a long time ago," said one recycler. "They have been so unpredictable for the last couple of years, that their absence has minimal effect."

R-HDPE could rise

Through the early winter, recycled HDPE prices were flat. "Scrap prices, however, seem to have picked up, probably driven by export demand. Scrap HDPE is up 2 cents to 3 cents/lb since the first of the year. However, there has been little change in repro or flake prices so far," one recycler commented.

RECYCLED RESIN PRICES

                        Pellets   Flake
                         cents    cents
                          /lb      /lb

PET Bottles (Clean)
Clear Post-Consumer      64-67    54-56
Green Post-Consumer      50-55    40-44

HDPE (Clean)
Natural Post-Consumer    50-56    42-44
Mixed Colors             39-45    27-29

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     --

Polyethylene Film
Post-Consumer
  Stretch                 28      21-23
  Printed/Mixed           13       --
Post-Industrial
  Printed                 20       --
  Not Printed             24       --

PVC
Post-Industrial
  Flexible               55-65    37-39
  Rigid                  60-73    36-47