As the main importer of waste plastics, a seasonal fall in demand from Chinese buyers ahead of the Chinese New Year has prompted a slight reduction in export values. Consequently, there is some increase of material available for the UK market but prices have remained steady.
With the lull in demand from China, UK exporters are finding it a little harder to locate markets for waste plastics, which has meant some of the higher prices offered for the material are no longer achievable. Prices quoted for PET bottles have dipped a little to 65-80 for clear and 15-30 for coloured. Some types of polythene film are seeing similar changes in price.
Most companies are confident that China's high waste demand for plastics will revive in February, leading to higher prices re-establishing themselves. One industry expert said: “There's a lot of material on the market at the moment, but by the end of February the Chinese market should pick up again.”
Cautious
Reprocessors are still cautious over the long term stability of the Far East market. Concern has been raised as the Chinese government continues to tighten restrictions on levels of contamination of materials and the types of waste materials allowed into the country.
One plastic bottle reprocessor told letsrecycle.com: “There's some nervousness over the steadiness of the Chinese market and some talk about China banning different types of waste and shutting their borders to household waste including bottles, but it has not happened yet.”
He added that a lack of transparency in the export market and Chinese legislation makes it difficult for companies to make accurate predictions.
Domestic
Because of the current dip in exports, more material has become available to domestic recyclers but many UK recyclers have chosen to keep domestic prices for January the same as those in December.
“Prices are relatively stable at the moment,” a UK recycler said, “They have been stable since about November and are not likely to change much in February.”
Another told letsrecycle.com its prices will be reviewed if the market does not recover after the Chinese New Year. “We could force the prices down because of the amount of material around but we want to keep our supply constant and not to underpay our suppliers. If the Chinese market does not pick up by March then we will look to drop our prices,” he said.
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