Both HDPE and LDPE plastic prices have hovered around the 200 per tonne mark in 2005, an increase on early 2004 when prices were nearer 150.
” There will be a point where it is no longer be cost effective for Chinese importers to buy in plastic from Europe. “
– Hongwei Sun, Yue He International Trade Co.
Many plastic reprocessors put this price increase down to the strong demand from Chinese importers, although increases in oil prices have also played their part in the increasing price of recovered plastic.
But one Chinese importer has told letsrecycle.com that demand for UK plastics may switch to material from Japan or Korea if prices continue to soar.
Hongwie Sun, general manager of the Yue He International Trade Company, said: “There will be a point where it is no longer be cost effective for Chinese importers to buy in plastic from Europe. Although the film coming from China, Japan and Korea is not of the same quality, it will become more appealing the bigger the gap between prices gets.”
Based in DaLian in the North of China, Mr Sun's company currently buys plastic from Japan and Korea. But, he is currently in Europe hoping to arrange import contracts – including at least two from UK companies.
Contracts
Mr Sun said that to ensure the export market from Europe continues to prosper, European companies should be prepared to sign up to long-term, fixed price contracts.
“This will help stabilise the market,” he said. “It will guarantee that material will be wanted for a set time and of course it will ensure the companies get a good price of there is a fall in the price of plastic.”
The Yue He International Trade Company was set up just over a year ago with the specific aim of collecting plastic and metal.
The company is currently dealing specifically with LDPE and HDPE film and is looking to bring in around 200 tonnes of plastic per week from the UK. It currently handles around 800 tonnes of plastic a month as part of long term contracts signed with Japanese and Korean companies.
Subscribe for free