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.
