Prices of some standard recyclate grades on the Western European market declined somewhat in July 2019. Declining virgin material contract prices thwarted recyclers’ moves to hike sales prices for recycled polyethylene and recycled polypropylene on the grounds of increased costs.
With rPE, rPP homo and rPET flakes, suppliers even had to grant slight discounts. There were also reductions for both coloured and dark rLDPE, as some recyclers pushed lower-specified grades onto the European markets after losing important export markets in Asia.
The downward trend should have gained momentum in August. This is because all secondary materials are increasingly feeling competition from low-cost spot offers for virgin materials. In addition, demand is declining since many buyers are reducing or even stopping production during the holiday season. Some recyclate suppliers are using this period to build up inventories for the expected strong business in autumn.