Recycled resins stable but poised for increases.

* Summer often brings a lull in recycled resin pricing. This season is no exception --except for polystyrene, where virgin prices are soaring and taking recycled prices with them.

R-HDPE going up

Natural recycled HDPE prices have stabilized since May. Mixed-color prices also stabilized but the spread between the two has narrowed. Reprocessors say prices bumped up a little in early summer but are now back down to spring levels. Says one recycler, "Some bigger players have been trying to keep prices stable, but the feedstocks are now forcing prices up."

An increase of a penny or two is expected for mixed-color this month because of limited availability. "We pretty much match virgin price changes--about a 45-day lag behind. As long as virgin materials stay expensive and there is low availability of wide-spec, it's going to keep our prices up," one recycler explains.

R-PP steady for now

Demand for recycled PP is strong, but prices have been holding steady this quarter, helped by a seasonal dip in automotive demand. "A lot of automotive facilities are shut down in the summer, but they are only about 20% of our business. PP availability is tightening up even without them. If automotive plants were running, I don't know what we'd be doing," says one reprocessor. The consensus is that recycled prices are likely to rise in the near future.

R-PET high but stable

Pricing for recycled PET has been stable for the last couple of months, though clear material experienced a 1 cents/lb increase. Most suppliers don't expect much change, owing to heavy demand--even if virgin prices start to drop. In the fall, prices often come down a little bit after a summer of heavy beverage consumption. "This year, I would expect we'll be at this same level, give or take a cent, into September," one source says."

R-PS rising

In the last quarter, recycled PS prices have gone up 3 cents to 4 cents cents for black and as much as 7 cents/lb for natural. Suppliers have their eyes fixed on virgin prices, where the big question is whether double-digit increases announced by some suppliers will actually take effect.

RECYCLED RESIN PRICES

                        Pellets    Flake
                        cents/lb   cents/lb

PET Bottles (Clean)
Clear Post-Consumer     55-57       44-45
Green Past-Consumer     44-48       38-40

HDPE (Clean)
Natural Post-Consumer   40-43       25-28
Mixed Colors            32-33       23-27

Polystyrene
Post-Consumer
  High Impact
    Black               43-46       39-41
    Natural             50-55         --
  General Purpose
    Black               38-40         30
    Natural             43-45       38-40

Polypropylene
Post-Industrial         21-27       17-18
Post-Consumer           17-19         --

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

PVC
Post-Industrial
  Flexible              32-40         --
  Rigid                 50-66         --