Getting Tighter

Supplies of certain secondary plastics seem to be getting harder to come by, according to sources, which is helping to boost pricing for material.

A scrap reprocessor serving the Midwest and Southern Ontario says demand for PP (polypropylene), ABS (acrylonitrile butadiene styrene), PC/ABS (polycarbonate/acrylonitrile butadiene styrene) and PC/PBT (polycarbonate/polybutylene terephthalate) is increasing, while material is becoming more difficult to source. “Higher use by companies using their own scrap is limiting the availability of material on the market,” he says. “Higher virgin prices are also increasing the use of recycled materials.”

Demand for high-molecular-weight high-density polyethylene (HMW) is also increasing as supply becomes constrained, according to a reprocessor based in the Southeast.

HMW is used in large blow-molded products, such as Dumpster lids, and for larger pipes.

“Demand picked up suddenly, and no one had inventory,” he says of HMW.

The reprocessor based in the Southeast continues, “I would say prices are up across the board. The price we are paying for feedstock is very high, and there is some scarcity of feedstock.” The Southeast-based reprocessor adds, “We are getting enough [material], but we are only getting enough. It’s a day-to-day thing.”

A broker based in the Great Lakes region says the market is warming up,” adding that demand is “very strong on certain high-end materials.”

She adds that demand from overseas, particularly Asia, is healthy. However, container shortages are making export transactions more difficult.

The reprocessor based in the Southeast says he’s noticed softer demand for PP and ethylene fibers from the export market, pointing to container tightness and rising rates from steamship lines as potential contributors. “The low-margin stuff isn’t worth moving anymore,” he adds.

Overall, secondary plastics markets seem to have improved from the start of the year, according to sources. The reprocessor based in the Southeast says he’s not sure how much of this improvement can be attributed to an improving economy. “It could be seasonal factors,” he adds, noting increased demand from the nursery and pipe markets.

“I continue to see good business going forward,” the reprocessor says. Demand for high-quality recycled plastics is increasing as businesses try to improve their efficiencies, he says. “Companies making good regrind or pellet will see strong business.”