Domestic market considered ‘mixed’

Recent reports from board members of the Plastics Division of the Brussels-based Bureau of International Recycling (BIR) describe a “mixed” U.S. market for recycled resins.

Board member Sally Houghton of The Plastics Recycling Corp. of California writes that while polyethylene terephthalate (PET) and mixed-color high-density polyethylene (HDPE) are facing significant headwinds, materials such as natural HDPE have been stable or seen a rise in demand.

Regarding recycled PET, Houghton writes that the market has been grappling with supply shortages and unusually high prices for the summer season, creating pressure on reclaimers to meet demand.

“The next few months will be pivotal, particularly with factors like the upcoming U.S. elections and the recent change in federal interest rates influencing market confidence.” – Sally Houghton, The Plastic Recycling Corp. of California

“Winter is expected to exacerbate these issues as consumption of soft drinks stops, leading to further price increases for bales,” she says.

Mixed-color HDPE bale pricing remained low throughout the summer, with one Midwest-based recycler saying it “hit a floor” of about 10 cents per pound in August.

Houghton reports the same domestic bale price, adding that buyers have been limiting purchasing to contracted volumes, while excess supply goes to export markets.

However, demand for natural HDPE has increased, Houghton says, with bale prices rising from 32 cents per pound to 41 cents.

More broadly, the economic environment, which includes inflation, high interest rates and a slow recovery, is contributing to caution surrounding large-volume purchasing, Houghton says.

“The next few months will be pivotal, particularly with factors like the upcoming U.S. elections and the recent change in federal interest rates influencing market confidence,” she adds.

Weakened demand for some resins hasn’t only been an issue in the U.S. In his BIR report, board member Xavier Lhoir of Belgium-based Valipac writes that virgin and recycled plastics prices have not moved much for that reason, adding that markets didn’t improve over the summer.

“Further price reductions to entice buyers are not expected as recyclers’ margins are at a historical low,” Lhoir says. “Many are merely surviving because of stable prices as increases are very unlikely in October.”

Sponsored Content

SENNEBOGEN 340G telehandler improves the view in Macon County, NC

An elevated cab is one of several features improving operational efficiency at the Macon County Solid Waste Management agency in North Carolina. When it comes to waste management, efficiency, safety and reliability are priorities driving decisions from day one, according to staff members of the Macon County Solid Waste Management Department in western North Carolina. The agency operates a recycling plant in a facility originally designed to bale incoming materials. More recently, the building has undergone significant transformations centered around one machine: a SENNEBOGEN telehandler (telescopic handler).

Plastics Division President Henk Alssema of Netherlands-based Vita Plastics says recyclers across Europe are facing difficulties from low margins and poor sales with manufacturers struggling.

“Demand for recycled materials remains under pressure, and those who hoped for a recovery after the summer break have been disappointed,” he says. “Even worse, it seems the market may deteriorate further as we head towards the end of the year. Prices, margins and sales are under immense pressure, sentiment is poor and the tonnages currently being traded are low.”