Prices have risen globally for virgin polymers as demand has strengthened and output stands at or near full capacity in the face of some plant closures and shutdowns. But, although there is good demand for factory offcuts, prices for secondary material, such as plastic bottles and film, are showing little sign of rising substantially although they are expected to edge up over the next few months.
Bottles
Steady prices are apparent in the secondary bottles market although there is an air of uncertainty because of the political situation worldwide and the continuing volatility in the oil market.
While prices are holding level, UK demand is said to be slacker than it has been over the past few years for several reasons.
There is a seasonal factor in the case of plastic bottles with substantial tonnages used for making outdoor products such as water butts and composters and extra demand in this market will come into play over the next month.
Another reason likely to slow price rises for used bottles is the weak PRN – packaging waste recovery notes – which is now down to below 20 in value per tonne and showing little sign of rising.
Price pressure for finished goods is also dampening the sector. Companies using recycled bottles in manufacturing are facing the problem that selling prices for their products remain under pressure and this is causing some firms involved in the construction sector to report “we have enough supplies at present”.
Quality is an important issue and some merchants have remarked that the quality of material from local authority sources is poor. One said: “Councils and their contractors could pack their bottles better and remove more rubbish.”
The export market continues to take substantial volumes of bottles from the UK but is seen as “fragile” and one that “can come and go”. Health and safety as well as export shipment rules are being tightened.
Film
Demand for used film is described as “buoyant” although reprocessors are continuing to favour cleaner material rather than heavily contaminated loads which can attract as little as 10 per tonne.
Prices eased marginally around the turn of the year and the potential for increases since then have been knocked by lower PRN values. There appears to be a general consensus of views that while waste prices have been higher in the past, they have also been a lot lower for the film – which typically comes from the back of retail stores and depots.
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