1. The market for primary plasticsThe monthly upward trend continues! The policy of continuous small to average price increases has had an impact. Price increases range between 40 and 100 /to. According to the EUWID Price Watch, the average price of the ten types of plastics listed below is meanwhile at 977 /to; thus it has increased by 78 /to compared to the previous month. The price index for the ten types of standard plastics shows the following price quotes: LDPE film grade 950-990 /to, LLDPE film grade 950-990 /to, HDPE injection moulding 930-980 /to, HDPE blow moulding 920-990 /o, PS general purpose 1000 - 1050 /to, PS high impact 1050-1100 /to, PP homopolymer 880-950 /to, PP copolymer 930-1000 /to, PVC tube grade 930-970 /to, PVC film/cables 970-1010 /to. Hence, the prices differ from last year's quotes by 560 /to for LDPE, 550 /to for LLDPE, 530 /to for HDPE, 340 /to for PS, 420 /to for PP and 123 /to for PVC. The recent price increase is explained by a number of reasons, such as stock replenishment, production plant failures and suspensions, the increase in primary product prices as well as reductions in supply, which have taken place despite a limited, but steady demand. However, experts do not regard this as a real economic recovery yet.
PET: In July the PET price quoted for packaging from Western Europe was at 1000 - 1130 /to, thus falling short of the previous month by 10 /to. The global demand for PET has led to a further fall in prices. So far attempts to regulate and reduce the capacities available through materials flow management have not had an impact.
On the London Metal Exchange price quotes have remained firm. The prices quoted here are average values of the LME purchase and sales prices. In week 33 the PP purchase prices quoted for September, October and November were at 1075 US-respectively. The LLDPE purchase prices quoted for September, October and November attained 1190 US-$, 1195 US-$ and 1195 US-$ respectively. Thus the September quotes for PP have increased by 60 US-$ compared to the previous month. The price quotes for LLDPE have remained unchanged compared to the previous month. The LME quotes indicate an interim high, which was at least attained by PE. The PP quotes might increase by an additional 100 US-$.
2. The market for secondary plastics
The summer doldrums have had an impact - July and August have proved to be calm and thus stable in prices. The overall situation remains difficult as the plastics market has not stabilised yet. When there is a low turnover, prices are oriented towards virgin materials, minus a reduction, rather than being determined by market behaviour. Therefore, hopes for the secondary market are based on the steadily rising prices in the primary market. Collected and sorted high-quality goods are quoted at favourable prices. Furthermore, high-quality recyclates can be purchased at comparatively favourable prices. Strategic warehousing, meaning stock replenishment and stock reduction, is optimised according to the respective step in the production process, i.e. collecting, sorting, reprocessing, manufacturing as well as trade. The export trade with the Far East is making slow progress; there is still a demand for European goods, PE and PET in particular. Export prices have come under considerable pressure. Other countries in the Far East are gaining in importance for plastics exports. A trend reversal, leading to an increase in turnover, more stable prices and higher profit margins, is not in sight until October.
2.1 EUWID Price Watch
The market for PE post-industrial waste continued to be stable in prices in July. The following prices were quoted once again: HDPE mixed colours 300 - 450 /to, HDPE natural 400 - 530 /to, LDPE mixed colours 250 - 400 /to, LDPE natural 350 - 450 /to, LDPE film mixed colours (K49) 160 - 240 /to and LDPE film natural (K40) 300 - 450 /to.
Some quotes for PE post-user plastics have changed in the EUWID Price Watch for July; PE film is still in great demand on the global markets. The prices of certain film grades have risen by 10 /to. Hence, the following prices are quoted for PE post-user plastics: LDPE shrink film natural (E40) 280-360 /to, LDPE shrink film mixed colours (E49) 170-220 /to, LDPE stretch film natural (E70) --- /to, film transparent natural <70 mm 280-320 /to, film transparent coloured <70 mm 280-320 /to, LDPE farm film natural <70 mm (B40) --- /to. LDPE farm film black or white >70 mm (B41) 10-50 /to, mixed film (98/2) 280 - 320 /to, mixed film (90/10) 170-210 /to, mixed film (80/20) 150 - 180 /to, HDPE hollow bodies mixed colours (C29) 20-100 /to, HDPE regrind from crates colour-separated 400-450 /t and HDPE regrind from crates mixed colours 300-430 /to.
PP: The PP markets have undergone the same development as the PE markets with a certain time lag; even though prices have remained stable, demand is on the increase again. The following prices are quoted for PP: film mixed colours (K59) 0 - 90 /to, film natural (K 50) 150 - 200 /to, homopolymer mixed colours 230 - 450 /to, homopolymer natural 300 - 350 /to, copolymer mixed colours 240 - 400 /to, copolymer natural 350 - 500 /to. No quotes are given for black and glass-fibre reinforced injection moulding goods respectively.
PS: The prices quoted in this segment have also remained unchanged compared to the previous month. The demand for PS post-industrial waste has slightly increased. However, experts regard this as a tendency towards decreasing secondary PS prices. The following prices are quoted: standard mixed colours 300 - 400 /to, standard crystal clear 400 - 500 /to, standard white 400 - 500 /to, high impact mixed colours 300 - 400 /to, high impact black 320 - 480 /to and high impact white 400 - 550 /to.
PVC quotes have also remained unchanged compared to the previous month. PVC post-industrial waste is quoted at: PVC-P transparent 330 - 400 /to, PVC-P mixed colours 300 - 350 /to, PVC-U transparent ---, PVC-P mixed colours 200 - 350 /to and tube grade mixed colours 200 - 350 /to. The following prices are quoted for PVC windowframe regrind: Windowframe regrind white 490 - 600 /to, windowframe regrind mixed colours 300 - 400 /to and windowframe regrind single-shade white 600 - 740 /to. Some experts expect the PVC markets to slightly recover, whereas others point to the economic crisis in the construction sector.
Post-user PET: The expected summer boost has not materialised yet. On the contrary, the decreasing primary goods prices are reducing bottle prices. According to experts, transparent bottles are selling well. Mixed-coloured goods are primarily exported. EUWID is reported to have resumed price quotation in its Price Watch again in July. In the restructured Price Watch the reuse system bottle grade PET transparent is quoted at 190 - 225 /to, whereas PET mixed colours is quoted at 90 - 120 /to.
2.2 plasticker price index
Standard plastics prices have remained firm in July 2009 compared to June 2009. Price fluctuations show no consistent trend; they range between - 150 and + 100 /to. PET quotes are firmer compared to the previous month. The first forecast of the August quotes suggests further price stabilization with a tendency towards price increases in certain types of plastics. The following price changes greater than/less than 40 /to can be reported for July compared to June: HDPE bale goods - 70 /to, HDPE regrind + 40 /to, PP regranulates + 100 /to, PS regrind - 50 /to and PS regranulates - 150 /to.
Technical plastics showed distinct price decreases in regranulates in July, whereas the quotes for regrind remained stable. The forecast of the August quotes, however, suggests that prices are going to increase throughout, namely by 40 /to for regrind and by 190 - 500 /to for regranulates. The following decreases in technical plastics prices greater than/less than 70 /to can be reported for July compared to June: PC regranulates - 230 /to, PA 6 regranulates - 180 /to and PA 6.6 regranulates - 110 /to.
*Supply figures too low to attain statistical significance
The price quotes for secondary plastics can be calculated on the basis of plasticker (cf. www. plasticker.de). The prices listed in this index are quoted with reservation - as the majority of the quotes submitted are not necessarily equivalent to the sales prices.Therefore, the information provided by plasticker indicates distinctly different market behaviour than the prices quoted by EUWID.
The EUWID price quotes refer to bale goods or regrind. The given prices were quoted for business transactions between sorting plants and sales agents or the processing industry, as the case may be. As a rule, prices refer to quantities in excess of 20 to ex works. The prices attainable in trade can differ considerably from the indicated price range in both directions, depending on the grade of the type of plastic material quoted. The abbreviations used for some grades refer to the list of waste plastics published by the German Federal Association for Secondary Raw Materials and Waste Disposal (bvse)/Bureau of International Recycling (BIR).
Information about the market for plastics is being presented by:
bvse - Bundesverband Sekundärrohstoffe und Entsorgung e.V.
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