For the Quarter Ending September 2024
North America
In Q3 2024, the Recycled High-Density Polyethylene (R-HDPE) market in North America exhibited a stable pricing environment, characterized by minimal fluctuations. The market's steadiness was influenced by a balanced interplay of supply and demand dynamics, with consistent demand from industries such as packaging and construction providing support for price stability. Additionally, improvements in collection and recycling efforts contributed to a well-managed supply flow, helping to avoid significant market imbalances.
In the United States, where the most notable price changes were observed, trends revealed a cautious approach by buyers and sellers, leading to minor price adjustments. Seasonal factors and market sentiment also influenced pricing, with a notable correlation between demand patterns and price movements. The market's stability was further highlighted by a minor quarter-on-quarter decrease of approximately 0.6%, emphasizing the absence of significant price shifts.
Comparing Q3 2024 to the same quarter last year, prices showed a notable decline, reflecting a modest downward trend over the longer term. The quarter concluded with R-HDPE Natural Pellets BM FDA Approved Ex-Works Nebraska priced at 1,590 USD/MT, underscoring the prevailing stability in the market. This consistency in pricing patterns illustrates the resilient nature of the R-HDPE market in managing supply-demand dynamics throughout Q3.
APAC
The third quarter of 2024 for Recycled High-Density Polyethylene (R-HDPE) in the APAC region was marked by a period of stability with slight price fluctuations. The market experienced mixed trends, starting with a peak in July, followed by a decline in August as prices reached 770 USD/MT, and ending with a minor recovery in September. Several key factors shaped this pricing trend, including steady yet subdued demand from sectors like packaging and construction, which limited upward momentum. In addition, the availability of post-consumer material remained ample, contributing to a balanced supply scenario. This, coupled with a decrease in energy prices, further prevented significant price gains. China, being a major player in the region, observed the most pronounced changes, influenced by global economic uncertainties and fluctuating export demand. Despite a 0.6% increase in average prices from the previous quarter, the market sentiment remained cautious. Compared to the same quarter last year, prices registered a significant decrease, reflecting long-term downward pressure. The latter half of the quarter saw a slight decrease of about 1% compared to the first half, highlighting ongoing challenges in demand recovery. As the quarter closed, the R-HDPE price of 783 USD/MT underscored the market's struggle to maintain a positive trajectory amidst fluctuating conditions.
Europe
In Q3 2024, the European market for Recycled High-Density Polyethylene (R-HDPE) experienced a steady uptrend in prices, driven by a combination of demand and supply factors. Germany, as a key market within the region, witnessed significant price adjustments that mirrored the broader upward trend. The increased adoption of sustainable materials and heightened demand from sectors such as packaging and construction played a central role in supporting price growth throughout the quarter. Supply constraints, alongside improved supply chain efficiencies, helped maintain this positive momentum. Seasonal variations also influenced demand patterns, adding to the pricing dynamics in the region. Compared to the same quarter last year, R-HDPE prices rose notably, reflecting a continued preference for eco-friendly solutions. The quarter-on-quarter rise of around 3.1% further underscored the sustained upward trajectory in market pricing. A closer look at the quarter revealed a stable increase between July and August, followed by a slight dip in September. The quarter ended with a price of 1238 USD/MT for R-HDPE Light Pellets FOB Hamburg, Germany, illustrating the market's resilience and the bullish sentiment that characterized the period. The overall positive trend highlighted the region's steady adaptation to evolving market conditions and sustainability goals.
MEA
Throughout Q3 2024, the market for Recycled High-Density Polyethylene (R-HDPE) in the MEA region showed a mix of stability and minor price fluctuations. Demand remained relatively steady, particularly from key sectors such as packaging and construction, which helped maintain a balanced market environment. However, global supply chain disruptions and logistical challenges limited the availability of R-HDPE, providing some support to prices even amidst overall stability. In Saudi Arabia, the market experienced the most significant changes within the region. Price movements during the quarter were influenced by seasonal variations and steady demand in the construction sector. Although Q3 2024 saw a slight -1.2% decrease from the previous quarter, the latter part of the quarter recorded a small 1% increase, reflecting a stabilization trend. Compared to the same period last year, prices were down significantly, indicating some longer-term pressure on the market. The quarter concluded with R-HDPE Injection Moulding Spot EX-Riyadh priced at 778 USD/MT, illustrating the region's ability to navigate through fluctuating supply-demand dynamics. Despite the minor variations, the overall sentiment in the market remained stable, highlighting the steady demand and controlled supply conditions that characterized Q3 2024 in the MEA region.
For the Quarter Ending June 2024
North America
In Q2 2024, the pricing environment for Recycled High-Density Polyethylene (R-HDPE) in North America demonstrated notable stability. This quarter exemplified a balance in supply-demand dynamics, primarily due to consistent availability of raw materials and steady demand from key downstream sectors such as packaging, construction, and automotive.
Despite moderate supply constraints impacting the broader region, enhanced recycling efforts and stable upstream prices for virgin HDPE contributed to maintaining price equilibrium. Focusing specifically on the USA, where the most significant price fluctuations were observed, the overall market sentiment remained stable. The trends indicated a robust demand from sectors prioritizing sustainable materials, which sustained R-HDPE prices. Seasonality factors such as increased demand during peak summer sales were offset by efficient supply chain operations, ensuring no drastic price changes. This quarter’s pricing stability starkly contrasts with the same quarter last year, which saw a substantial decline, attributed to previous market volatilities.
However, compared to the previous quarter of 2024, prices increased by a modest 5%, reflecting improved market conditions and sustained demand. The comparison between the first and second halves of Q2 2024 revealed no significant price difference, with a recorded no change, underscoring the stable market conditions. The quarter concluded with R-HDPE - Natural Pellets BM FDA Approved Ex-Works Nebraska in the USA priced at USD 1590 per MT, confirming a stable sentiment. Overall, the pricing environment for R-HDPE in the USA during this quarter has been stable, driven by balanced supply-demand dynamics and supportive market conditions.
APAC
In Q2 2024, the Recycled High-Density Polyethylene (R-HDPE) market in the APAC region experienced notable price increases, driven by several influential factors. The significant uptick in demand from the downstream packaging, construction, and automotive sectors was a primary catalyst for this upward price movement. The heightened demand for sustainable packaging solutions and the adoption of eco-friendly materials in the construction and automotive industries underscored the strong market pull for R-HDPE. Additionally, the consistent and robust supply of post-consumer bales ensured that production could meet this increased demand, albeit at higher costs due to escalating transportation and logistics expenses. Focusing specifically on China, which saw the most significant price changes, the market dynamics were characterized by strong seasonal trends and a notable correlation between supply constraints and rising costs. The price change from the same quarter last year marked a notable decrease, reflecting previous fluctuations in market conditions. However, a 2% increase from the previous quarter in 2024 highlighted a rebound driven by improved industrial activities and tightening supplies. This positive pricing environment continued into the latter half of Q2, with a further 4.5% increase, culminating in a quarter-ending price of USD 800/MT for R-HDPE blow moulding grade on FOB Tianjin basis. These trends indicate a bullish market sentiment, with increased cost pressures being efficiently passed through the supply chain, reflecting a positive pricing environment for R-HDPE in China and the broader APAC region.
Europe
In Q2 2024, the Europe region experienced an upward trajectory in Recycled High-Density Polyethylene (R-HDPE) pricing, influenced by a confluence of robust demand and constrained supply dynamics. Key factors underpinning this price escalation include heightened consumption from downstream sectors such as packaging, construction, and automotive industries. The growing commitment to sustainable practices and regulatory mandates for reduced plastic waste have significantly bolstered demand for recycled materials, including R-HDPE. Concurrently, tight supply conditions, driven by challenges in collection and recycling efforts, have further exacerbated the upward pressure on prices. Additionally, increased transportation and logistical costs have contributed to the overall pricing environment. Focusing on Germany, this market saw the most pronounced price changes, underscoring the overall trend of increasing prices observed across Europe. The German R-HDPE market has been notably bullish, with prices reflecting a significant increase from the previous quarter, indicative of strong market fundamentals. Seasonality also played a role, with heightened activity in the summer months driving demand and contributing to a 3.4% price increase between the first and second half of the quarter. Despite these increases, prices in Q2 2024 were still substantially lower compared to the same quarter last year, highlighting a recovery phase from previous declines. The consistent demand from key sectors and stable supply of post-consumer bales has ensured a positive pricing environment in Germany, culminating in a quarter-ending price of USD 1,215 per metric ton for light pellets grade on FOB Hamburg basis. This reflects a stable yet optimistic market sentiment, driven by both structural demand and supply chain dynamics, positioning R-HDPE as a crucial material in the sustainable materials market.
MEA
Recycled High-Density Polyethylene (R-HDPE) saw a markedly challenging Q2 2024 in the MEA region, with a predominant trend of decreasing prices. This quarter was heavily influenced by a confluence of factors. Excessive supply relative to moderate demand led to an oversupply situation, exerting downward pressure on prices. The persistent high inventory levels in the market exacerbated the price decline, as suppliers were compelled to reduce prices to clear stock. Additionally, the fluctuating costs of upstream feedstocks and logistics disruptions contributed to price volatility, further influencing the overall market sentiment. Focusing on Saudi Arabia, the nation exhibited the most significant price changes within the region. The overall trend in Saudi Arabia reflected a consistent decrease, with seasonality playing a critical role. The demand waned post-peak summer sales, typical for the packaging sector, dampening prices further. Correlating this with the broader market dynamics, Saudi Arabia's R-HDPE market saw a significant reduction in prices compared to the same quarter last year, underscoring a negative sentiment. From the previous quarter in 2024, prices marginally increased by 1%, indicating a brief period of stability before continuing their downward trajectory. Within Q2, the price comparison between the first and second half revealed a further 2.7% decline, highlighting the persistent bearish market. Concluding Q2 2024, the price of R-HDPE for injection moulding on a spot ex-Riyadh basis in Saudi Arabia settled at USD 770 per metric ton. This quarter's pricing environment has been decidedly negative, driven by an excess supply, cautious demand, and broader economic uncertainties, resulting in sustained downward pressure on R-HDPE prices.
For the Quarter Ending March 2024
North America
In Q1 2024, the North American R-HDPE market experienced moderate price volatility with a generally upward trend. Starting at USD 1650/MT, prices for Natural Pellets on FOB – Houston basis remained consistent in January amid stable demand-supply balance, despite pressure from the availability of cheaper scrap HDPE and a seasonal domestic slowdown.
A slight dip occurred in late January due to increased inventories and reduced demand from end-user industries. February saw a rebound and a subsequent bullish trend, influenced by heightened demand for outdoor pipes and a rise in export orders, particularly from France. Market supply faced challenges with limited availability and increased Ethylene costs, leading to supply constraints.
The Manufacturing Purchasing Managers' Index reflected an improvement, signifying an uptick in the manufacturing sector that fuelled demand. Prices adjusted to USD 1700/MT towards the end of the quarter, stabilizing amid balanced market conditions with stable inventories and average purchasing activity, ending the quarter unchanged despite the earlier fluctuations.
APAC
In Q1 2024, the APAC R-HDPE (Recycled High – Density Polyethylene) market exhibited a trend of modest decline in prices from USD 790/MT to USD 750/MT on FOB – Tianjin basis against a backdrop of various market pressures. The quarter initiated with a stable market; however, an increase in the collection rates of post-consumer products and readily available scrap HDPE at lower prices introduced a surplus of base materials, leading to a saturation in the market. Despite sufficient inventory and smooth supply chain operations, weak consumption in key sectors like construction and packaging inhibited market growth. The Lunar New Year period significantly impacted demand patterns, leading to decreased purchasing activities and a dip in production costs. Post-holiday, the market remained sluggish with stable but low demand from packaging industries and constant production rates. Notably, despite the fall in R-HDPE prices, virgin HDPE offers rose, indicating a potential divergence between virgin and recycled material markets. Overall, the APAC R-HDPE market-maintained stability in supply but faced ongoing challenges in demand throughout the quarter.
Europe
In the first quarter of 2024, the Recycled High-Density Polyethylene (R-HDPE) market in Europe exhibited moderate fluctuations. Prices for R-HDPE Light Pellets on FOB - Hamburg basis began at USD 1110/MT and initially remained stable due to balanced demand-supply dynamics and ample inventory levels. A slight increase occurred mid-January, driven by an uptick in spot purchasing activities. However, by early February, prices dropped amid bearish market sentiments and higher feedstock costs, influenced by geopolitical tensions in the Middle East which disrupted supply chains. Prices continued to decline, stabilizing at USD 1075/MT through late February and early March. A minor rebound was observed by mid-March, reflecting a cautious optimism among traders due to a marginal uptick in demand. The market faced several challenges, including weak consumption from key sectors like construction and packaging, alongside the impact of external factors such as increased transport costs and supply disruptions. Despite these challenges, the market remained relatively stable, with supply adequately meeting the subdued demand.
MEA
In Q1 2024, the R-HDPE market in the MEA region demonstrated a degree of price volatility within a narrow band. The quarter started with a dip in prices to USD 760/MT on spot ex – Riyadh basis, attributed to ample supply, average overseas demand, and high post-consumer product collection rates leading to increased material availability. Despite a moderate demand from critical sectors like construction and packaging, the market managed to recover, returning to the initial price level, and eventually reaching a peak of USD 790/MT by mid-March. Market activities were relatively muted, with enterprises showing limited bulk purchasing interest, leading to substantial inventories and a saturated market. A slight price surge was noted in response to a rise in manufacturing activity and demand from sectors such as pharmaceutical packaging. Price stabilization towards the end of the quarter suggests a consolidation phase with cautious buying strategies and sellers holding their positions, indicating a preparation for potential market shifts. Overall, the R-HDPE market in MEA navigated through supply abundance and fluctuating demand, maintaining relative price stability with a late-quarter upward adjustment.
For the Quarter Ending December 2023
North America
The North America region witnessed a feeble market situation for Recycled-High Density Polyethylene (R-HDPE) in the Q4 of 2023. However, the market faces challenges related to further growth primarily driven by lower prices of virgin HDPE and increased collection rates for post-consumer products, resulting in greater availability of base material.
The decline in prices is linked to unfavorable demand projections from downstream industries engaged in the production of recycled construction and automotive parts materials, especially in comparison to the demand for virgin HDPE products.
The high inventory level in the market resulted in muted trading activities and kept the market oversupplied. The spot market continued to observe a slower pace, as enterprises didn't show any interest in bulk purchasing. The stability in the supply/demand equilibrium and moderate demand from the downstream R-22 refrigerant ventures remained the primary reason for the weak price trend. In Dec 2023, the price of R-HDPE- Natural Pellets FOB Houston in the USA was USD 1552/MT.
Asia Pacific
The Recycled High-Density Polyethylene (R-HDPE) market in the APAC region during Q4 2023 witnessed a bearish trend with moderate to high supply and low to moderate demand. The market fundamentals leaned bearish due to a downturn in the price of virgin HDPE, an increase in the collection rate of post-consumer products, and weak consumption from key downstream sectors such as construction and packaging. The top reasons for the market situation were high supply over low demand, potential disruptions in the supply chain, and diminished operational rates among major recycled plastic manufacturers. China, which witnessed the maximum changes in price, had a sustained stability in pricing due to economic pricing of virgin HDPE in comparison to R-HDPE, despite reduced spot price offers. The trend, seasonality, and correlation price percentage of China in Q4 2023 were stable to bearish, with a 14% percentage change from the last year's same quarter price, a 2% percentage change from the previous quarter. In Dec 2023, the price of R-HDPE - Blow Moulding FOB Tianjin in China in Q4 2023 was USD 792/MT.
Europe
The Recycled-High Density Polyethylene (R-HDPE) market in Europe region witnessed bearish in pricing during the current quarter of 2023 (Q4), with demand remaining at a moderate level in various industries. The top three factors that affected the market and prices were the high supply of R-HDPE over low demand, increased operation rates from the associated downstream Automotive and packaging industries, and reduced spot price offers. Germany experienced the most significant changes in price, with a downward trend of 14% from the previous quarter due to sluggish end-user consumption in key industries. Additionally, the price percentage comparison of the first and second half of the Q4 2023 in Germany saw a decline of 7%. The trend and seasonality showed a sideways price trend influenced by the economic pricing of virgin HDPE over R-HDPE. In Dec 2023, the price of R-HDPE- Light Pellets FOB Hamburg in Germany for the was USD 1116/MT. Despite challenges faced by the R-HDPE market, such as material overflow and sluggish demand, the market remained stable with moderate demand from various industries.
MEA
The current quarter (Q4) of 2023 has been a stable one for the Recycled-High Density Polyethylene (R-HDPE) market in the Middle East (MEA) region. The market situation has been stable with moderate supply and a consistent supply chain. The top three factors that have impacted the market are the decreasing availability of inventories, the feeble demand for electrical goods, and the gradual decrease in demand from downstream plastic sectors. However, the market has been affected by the decrease in procurement activities and the overall contraction in prices due to reduced energy costs. Saudi Arabia, which has seen a 3.9% decrease in R-HDPE prices in December, has been the most affected country in the region. The country has experienced a 10% price change from the same quarter of the previous year and an 8% decrease from the previous quarter of 2023. The price trend, seasonality, and correlation percentage of the country have been calculated to be negative. In Dec 2023, the price of R-HDPE -Injection Moulding Spot Ex-Riyadh in Saudi Arabia is USD 789/MT.
For the Quarter Ending September 2023
North America
In the US market, Recycled High-Density Polyethylene (R-HDPE) has experienced a noticeable declining trend, with a decrement of approximately 30% within the entire Q3 of 2023. At the beginning of Q3, the R-HDPE market showcased a declining trend as downstream demand from construction businesses remained weak, leaving buyers cautious with high product inventories. Additionally, international market fundamentals have also dampened, influencing market participants to be hesitant in further investments. Further, the decline in prices for virgin HDPE material has further impacted the R-HDPE sector's competitiveness, resulting in subdued spot trading activities and sellers adjusting prices accordingly. Further, as the second month of Q3 unfolded, the market again observed a declining trend in the wake of a cheap inflow of scrap material, lowering the production cost of the material, which forced the suppliers to keep the price softer to keep the price economical. As the last month of Q3 approached, due to the absence of notable changes in the factor affecting final prices, the prices of R-HDPE in the US market have continued to decrease in line with the market dynamics and conditions observed over the previous month.
APAC
The Chinese market for Recycled High-Density Polyethylene (R-HDPE) experienced a noticeable declining trend, with a decrease of approximately 4.4% throughout the entire third quarter of 2023. At the beginning of Q3, the Chinese R-HDPE market faced uncertainty with lower demand projections from key sectors like Packaging and Textiles, resulting in fluctuating demand patterns. Weakened market fundamentals impacted investment decisions, leading to reduced utilization in downstream segments due to waning interest. Declining global prices for virgin HDPE material intensified market skepticism. Despite these challenges, the industry adapted strategically. However, in the month of August, R-HDPE prices displayed a slight ascent. This price surge was attributed to intensified demand from the global automotive sector. Nevertheless, restrained demand from the Packaging and Recycled product segments led to cautious buying patterns, hampering the overall growth trajectory. As the last month of Q3 approached, the R-HDPE market witnessed a downward price trend despite moderate demand from the Packaging, Automobile, and Construction industries in both domestic and global markets. Regular production led to an excess accumulation of material in the local market. Moreover, the ample availability of the material among enterprises reduced the demand-supply gap, prompting purchasers to offer lower bidding prices. As a consequence, spot trading activities were muted, and sellers were compelled to keep prices softer.
Europe
The European market for Recycled High-Density Polyethylene (R-HDPE) witnessed a noticeable declining trend, with a decrement of approximately 7.7% throughout the entire third quarter of 2023. At the beginning of Q3, the market faced several challenges, resulting in a consistent decline. Uncertainty surrounding demand from downstream industries disrupted market sentiments, leading industry stakeholders to adopt cautious investment strategies. These multifaceted challenges included the impact of lower prices for virgin HDPE material, which reduced the competitive advantage of the R-HDPE sector. Recyclers encountered operational obstacles, further complicating the situation. In August, there was a rise in post-consumer product collection rates, which increased the availability of the base material. However, weak consumption rates from key downstream sectors such as film production and packaging posed difficulties for recyclers. Transactions remained challenging, with low purchasing activities and feeble competitive bidding offers contributing to margin compression. As the last month of Q3 approached, the European R-HDPE market mirrored the global decline in pricing trends, influenced by the impact of a weakened PMI index. Economic repercussions cast a shadow on market dynamics. Reduced demand from the construction and packaging industries led to diminished operations and increased regional inventories. Furthermore, the preference for virgin HDPE over recycled materials, driven by the former's durability, posed a challenge for recyclers.
MEA
In Saudi Arabia, the Recycled High-Density Polyethylene (R-HDPE) market experienced a mixed trend during the third quarter of 2023. Market sentiments fluctuated based on various factors affecting supply and demand dynamics. At the beginning of the quarter, the market faced consistent challenges due to sluggish demand from downstream sectors like textiles and packaging. While the automotive sector exhibited robust global demand, it wasn't sufficient to alter the prevailing market trend. Moving to the second month of Q3, the R-HDPE market saw a marginal price uptick. This price surge was observed due to high demand from the automotive industries. However, reduced demand from the packaging and textile sectors made buyers cautious, hindering the product's growth rate. This incremental price shift was also attributed to constrained crude oil supply, impacting the broader market fundamentals. As the last month of Q3 approached, the price of R-HDPE remained steady and unchanged throughout the month. However, persistent sluggish demand for R-HDPE from packaging and textile industries, both domestically and globally, negatively impacted the product's pricing. Moreover, frequent surges of material led to a situation of material overflow within warehouses. Despite efforts to manage the supply-demand balance by reducing production rates, major traders experienced a softening trend.
For the Quarter Ending June 2023
North America
In the US market, Recycled High-Density Polyethylene (R-HDPE) has experienced a noticeable inclining trend within the entire second quarter of 2023. At the beginning of Q2 R-HDPE market showcased an inclined trend in the wake of the rise in the consumption rate from the major construction and Automotive industries, with its procurement activities and export of the commodity also increasing. During this month, healthy demand from the international markets also concluded in vigorous trading activity. As a result, in the month of May, the industry’s heightened demand created a supply-demand imbalance, resulting in notable price escalations. In order to meet the growing demand, there has been a significant increase in trading activities for the commodity was observed. Moreover, market participants shifted their focus towards acquiring substantial stocks to stockpile inventories further. Coming to the month of June slump in the market value of R-HDPE occurred due to the feeble price of virgin HDPE material. Furthermore, diminished international market fundamentals manipulated market participants for further investment in the product. Moreover, companies claimed to secure a substantial volume of products in the preceding month, ensuring a well-supplied region. Instead, overall, during Q2, the R-HDPE- Natural Pellets FOB Houston showcased an increment of approximately (2%).
APAC
The Chinese market of Recycled High-Density Polyethylene (R-HDPE) has experienced a noticeable declining trend in the second quarter of 2023. Several factors contributed to the overall market slump. A combination of reduced demand, supply challenges, and economic factors has impacted the R-HDPE market across China. One of the primary contributors to the decline trend is the decrease in the price of virgin HDPE material. Changing consumer preference coupled with an increased emphasis on profitability. Recyclers across the region have faced operational hurdles, including limited availability of plastic waste and logistical disruption. Additionally, strict regulations on imports and exports have affected the material prices in the local market. Generally, utilization of R-HDPE showed a profound withdrawal from the downstream segments on the rear of lazy interest standpoint thorough Q2. Thus, the price of R-HDPE - Blow Moulding FOB Tianjin showcased a decrement of approximately (11%) in the second quarter of 2023 and settled at USD 850/MT in the month of June.
Europe
The Recycled High-Density Polyethylene (R-HDPE) market finds itself on rocky ground with a decrement of approximately (5.6%) during the Q2 of 2023, with it the price of R-HDPE- Light Pellets FOB Hamburg slipping to USD 1324/MT in the last month of Q2 as uncertainty wraps the demand outlook from the downstream industries. Market sentiments have been disrupted, putting industry players on edge and prompting cautious approaches to investment in the product. In addition, R-HDPE markets experienced the effects of a decline in the price for virgin HDPE material and the rise in post-consumers products collection rate with a feeble manufacturing process, all contributing to weak demand and posing difficulties for recyclers. The R-HDPE market is grappled with a sense of uncertainty as the demand outlook from the key downstream sectors, such as Packaging and Textile industry, remained at its lower end. These sectors, which are vital consumers of R-HDPE, have exhibited a trembling pattern of demand overall, creating an atmosphere of cautious optimism during the second quarter of 2023.
MEA
In Saudi Arabia, the Recycled High-Density Polyethylene (R-HDPE) market experienced a mixed trend during the second quarter of 2023. The market sentiments fluctuated based on various factors impacting demand and supply dynamics. At the beginning of the quarter, the polystyrene market witnessed a decline in price trend due to the industry’s modest demand, which created a supply-demand imbalance, resulting in notable price depreciation. Furthermore, in the month of May, the R-HDPE market showcases a slight increment in the market. This growth is attributed to the surge in the consumption rate of materials from the packaging and automotive industries. Additionally, favorable market conditions and stable economic growth played a role in the upward trend. Coming to the last month of Q2, diminished international market fundamentals and continuous declining prices for virgin HDPE material manipulated market participants for further investment in the product. Moreover, continuously lessening product demand from downstream construction and textile industries in the region, manipulating traders for larger procurement of products. Consequently, this resulted in muted trading activities during the entire Q2 time. Overall, R-HDPE -Injection Moulding Spot EX-Riyadh experienced a decrement of approximately (3.7%) within the Q2 time period.
For the Quarter Ending March 2023
North America
The market for Recycled High-Density Polyethylene (R-HDPE) increased throughout the first quarter of 2023 due to optimum demand from downstream industries, namely packaging, pipes, and textile, resulting in higher prices. The primary reason for the increase was the healthy demand fundamentals in the domestic market. The oscillating prices of the feedstock Ethylene also played a part in the price inclination, supported further by the volatile Crude oil market. Local R-HDPE producers were operating smoothly as there was tight availability of material due to the rising orders for Recycled High-Density Polyethylene (R-HDPE). Overall, the R-HDPE market in the first quarter of 2023 showed a positive trajectory, with prices hovering at USD 2716/MT FOB Houston.
APAC
In the first quarter of 2023, the Recycled High-Density Polyethylene (R-HDPE) market in Asia experienced mixed emotions, with prices fluctuating and turbulence in the upstream crude oil market affecting production costs. However, the downstream market showed a substantial appetite for purchases, and the packaging industry had stabilized at a high level, creating excitement for downstream procurement. Although the market was optimistic due to the strong supply and demand sides, the overall market environment was favorable. Despite these supportive factors, the market experienced a brief downtrend due to sufficient inventories in the area. Overall, the Recycled High-Density Polyethylene (R-HDPE) market in Asia during the first quarter of 2023 exhibited fluctuations.
Europe
The Recycled High-Density Polyethylene (R-HDPE) market in Europe faced significant pressure in the first quarter of 2023, primarily due to weak demand and oversupply. Lower purchasing activity and weak end-use consumption from the packaging industry led to production curtailment as producers tried to offset the effects of limited buyer appetite. Local Recycled High-Density Polyethylene (R-HDPE) manufacturers were also reluctant to produce products due to ample inventory levels, which met consumer demand. The general weakness in other packaging industries further affected customers' attitudes toward the R-HDPE market. As a result, the outlook for R-HDPE in the first quarter of 2023 appeared to be bleak, with prices remaining around USD 1404/MT FOB Hamburg throughout March.
For the Quarter Ending December 2022
North America
The Recycled High–Density Polyethylene market was contrary to those of the Asian and European markets. When it comes to the U.S., in the month of October, the price of this product decreased, which was caused by the diminished demand for this product for use in plastics, furniture, and stationery manufacturing processes. However, from November onwards, prices started to increase as downstream businesses started procuring more of this product for this product than virgin HDPE for the production of end–products. Hence, HDPE recyclers also ramped up their production activities to meet the downstream demand, and suppliers, as well as sellers, were also procuring more of this product to boost sales and gain profits.
APAC
This quarter, the market sentiment for recycled high-density polyethylene was mixed in the Asia-Pacific region. In October, this product's price in China increased by almost 1% per MT and remained stable. The increased demand for this product for downstream processing by companies that make furniture, stationery, and plastics was the cause of the price increase. However, as governments reintroduced COVID-19 curbs, which hampered downstream production activities and resulted in average interest in this product, cost decreased in December. Due to the low demand for this product for use in downstream processing, R-HDPE prices in India were consistently falling. The prices of this product were also affected by the bearish crude oil market this quarter.
Europe
The price of recycled high-density polyethylene continued to fall in Europe. This quarter's bearish crude oil market had an impact on this product's prices. Because downstream businesses in Germany were more concerned about rising energy costs as a result of the ongoing conflict between Russia and Ukraine, this product was receiving average demand. As a result, there were ample stocks of this product that were not traded. Because they were receiving better offers for virgin HDPE, packaging companies preferred it to this product. For the same reason, upstream companies restricted their production activities.
For the Quarter Ending September 2022
North America
The market of R-HDPE in North America experienced a slight decline in this quarter. Downstream companies were showing modest interest, as they preferred virgin HDPE over this product for their manufacturing activities, and so, at times, there was an oversupply of this product in the market. However, most of the time, the prices of this product remained stable because of the stability in the demand-supply ratio. The companies involved in recycling HDPE had shut down their plants owing to the summer season. At the end of this quarter, the price of Recycled High–Density Polyethylene in the U.S. stood at USD 2,210 per MT for natural pellets grade on FOB–Houston basis.
APAC
Recycled High-Density Polyethylene was witnessing mixed market sentiments in the Asia–Pacific region this quarter. In India, the price of this product grew by almost 5% per MT from the end of the previous quarter. The growth in price was attributed to the enhanced demand for this product from plastics, furniture, and stationery manufacturing companies for downstream processing. When it comes to China, the prices of this product were seeing a constant decline, as both upstream, as well as downstream companies had to completely stop or lower their production activities because of uncertainties in power supply. The crude oil market, which was bearish this quarter, too did influence the prices of this product. As on 30th September 2022, the price of recycled High-Density Polyethylene for blow molding grade stood at USD 885 per MT on FOB–Tianjin basis.
Europe
In Europe, recycled High–Density Polyethylene witnessed a steep fall in costs from July to September. This product was getting average demand from downstream companies, as they were more concerned about the uncertainties in the energy supplies because of the ongoing Russia–Ukraine conflict, and so there were good volumes of this product in the inventories without getting traded. Packaging companies preferred virgin HDPE over this product as they were getting better offers for that product. Upstream companies had to modify their production activities as energy prices were soaring. So, this product ended this quarter at USD 1,755 per MT for light pellets grade on FOB – Hamburg basis.
For the Quarter Ending June 2022
North America
In North America, R-HDPE prices have witnessed mixed sentiments throughout the second quarter of 2022. In the first half, stable offtakes from the downstream packaging sector and reduced post-consumer bales prices have pressured R-HDPE's market sentiments in the regional market. Also, the inclination toward surplus availability of Virgin HDPE has substantially affected R-HDPE's market value. Furthermore, global supply disruptions have severely hampered import-export activities resulting in higher freight charges and curtailed availability of post-consumer bales supplies, escalating the manufacturing costs at the quarter-end. After the conclusion of Q2, the prices for R-HDPE- Natural Pellets in Houston, USA, settled for USD 2400/MT on a FOB basis.
APAC
The r-HDPE market continuously rose in China in the second quarter due to strong demand from downstream packaging and bottling sectors. The resurgence of Covid cases in China has compelled the production units to operate at limited capacities, surging the market value of R-HDPE. Also, the zero covid policy has constrained the supplies for post-consumer bales, culminating in hiked prices. Furthermore, the costs increased in India due to robust demand and constrained supplies in the first half of Q2. However, the uncertainties in the terminal market and the key energy raw material coupled with demand deterioration culminated in a slump in prices. In June, the R-HDPE costs in India were assessed at INR 104600/MT Ex-Delhi.
Europe
Domestic R-HDPE prices climbed at the beginning of Q2 amidst strong demand and curbed supplies of feedstock virgin HDPE in the European region. The demonstrated gains in the market value of R-HDPE have been attributed to soaring energy costs brought on by tension between European nations. Moreover, the inclination towards sustainable goals for a circular economy from top market participants has also pushed the demand for R-HDPE, passing on the high-cost pressure to the consumers. However, with gradually improving raw material market conditions and bullish market demand, the prices of R-HDPE in Germany escalated significantly, hovering around USD 2145/MT in June on a FOB basis
For the Quarter Ending March 2022
North America
In North America, prices of R-HDPE decreased during the first quarter of 2022 due to prolong uncertainty in the demand pattern. In January, the demand and supply gap narrowed because of the Omicron virus spread which led to the dull pickup in market activities. However, the demand from the packaging sector remained firm throughout the quarter. Increased supply of feed HDPE at low cost from the industries impacted the prices, and less demand from downstream automobile and textile industries further contributed to the downfall. By March 2022, R-HDPE prices settled at USD 2500 per tonne and witnessed a decrement of 19% from the last quarter of 2021.
Asia Pacific
Prices of R-HDPE remained highly volatile during Q1-2022. Prices decreased due to low feed HDPE prices and lacklustre demand from the domestic sector in January. However, prices surged in February and March because of increased feed HDPE prices after mid-quarter and high demand from the various end-user industries. Furthermore, the overall production cost was impacted by high crude oil prices because of the war between Russia and Ukraine. R-HDPE prices settled at USD 1326.95 per tonne in the Indian Market by March 2022, with an increment of 2% from the previous quarter.
Europe
R-HDPE prices rose significantly in the European region, especially at the beginning of the quarter. War tensions in the East European region resulted in supply shortage of raw materials HDPE and Carbon Black, which impacted the overall costs noticeably. High energy values further escalated the production costs, which caused an overall surge of 9% from January to March. Prices of light pellets R-HDPE were accessed at USD 800/MT on FOB basis in Germany.
For the Quarter Ending December 2021
North America
Backed by the surge in HDPE prices and scarcity in post-consumer bales in the spot market, the North American R-HDPE market jumped high in October causing the contracts to stay firm. However, the loosening constrictions in freight movement and supply recovery of HDPE tipped down the R-HDPE prices in the second half of the quarter. Despite the optimistic demand from the food and commodity packaging end-user sectors, the R-HDPE market continued to show bearish traits evidenced from the gradually falling prices of post-consumer bales and injection moulding grade R-HDPE pellets with the highest decline observed in blow moulding grade R-HDPE prices in the US market. The traders were seen prioritizing price cuttings amid competition from supply abundant HDPE market. The December prices for R-HDPE in the USA were assessed as USD 1501/MT and USD 1465/MT for Blow molding and Injection molding grades, respectively.
Asia
The R-HDPE market in Asia was termed high in October and November stemming from the inflation in virgin HDPE prices that got translated into the prices of post-consumer HDPE raw materials. China saw high trending recycled R-HDPE flakes during October on account of curtailed recycling processes under the “Dual Control Policy”. The output enhanced gradually with improving energy stocks causing the prices in December to settle at USD 936/MT FOB Tianjin. Snug supply and container shortage constraints amid the festive period-induced peak in demand enhanced the woes of Indian manufacturers who resorted to offering high contract prices during November. The traders were heard remarking about having to offer competitive prices keeping the virgin HDPE market prices in mind despite supply deficiency for a major part of the quarter. However, with gradually settling raw material market conditions and year-end dullness in demand, the prices of R-HDPE dropped significantly hovering around USD 1254/MT Ex-Delhi December.
Europe
The European R-HDPE market remained tight during October and November with a stronger virgin HDPE market, shortage in raw material inflow and sturdy demand from the downstream industries. The energy-intensive recycling process amid the catastrophic energy crisis in Europe raised the input prices to soaring levels, thus causing the R-HDPE prices to maintain prominent heights, which decreased eventually with slight enhancement in energy inventories and improving post-consumer bale supplies. However, the shortfalls in sorting processes raised quality concerns amid recyclers who resorted to offering competitive prices on recycled pellets to attract demand that had faltered with a seasonal lull during the year-end. The prices for R-HDPE in Germany were assessed as USD 1705/MT FOB Hamburg.
