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Cost increase

Rising prices of recycled plastics in Europe

March: due to rising material and production costs and short supply, European Renewable enterprises tried to raise prices sharply, but they were resisted by buyers and could only rise slightly. Nevertheless, the price of most recycled plastics has increased by three digits.

April: the price of recycled plastics continued to rise, with a small increase. The price of primary plastics has risen and there is a shortage of supply. Some enterprises have turned to recycled plastics to replace them.

Driven by the sustainable development plan of brands, consumer brands have particularly strong demand for recycled plastics. Most types and models of recycled plastics are enough to meet the needs of old customers, but the supply of high-quality recycled plastics is insufficient.

May: strong demand and rising costs of energy and waste may lead to a new round of price increases. The supply of high-quality recycled plastics and waste plastic bottles is still the most concerned problem of recycling enterprises.

1）R-PET

In April, the price of food grade transparent particles and bottle chips increased by 50 euros / ton, and the price of color bottle chips increased by 30 euros / ton. The rising cost of raw pet and waste plastic bottles supports the high price of RPET.

Pet waste plastic bottles, especially high-quality ones, are in short supply, blocked and delayed logistics, which also increases the transportation cost. After last month's crazy buying, demand fell back to normal in April.

2）R-LDPE

In April, thanks to the sharp rise in the price of native LDPE, the price of r-ldpe also increased accordingly. The price of transparent film increased by 90 euros / ton, and the price of other films increased by 30-50 euros / ton.

The supply of r-ldpe is sufficient, but the supply of high-quality r-ldpe is insufficient and the price is more expensive.

3）R-HDPE

In April, the price of r-hdpe increased by 50 euros / ton. Due to the shortage of materials and the sharp rise in the price of raw materials, renewable enterprises can easily push up the price. The supply of r-hdpe is sufficient, but the supply of high-quality r-hdpe is insufficient and the price is more expensive.

The consumer industry and construction industry have strong demand for r-hdpe, while the demand for black injection grade materials in the automotive industry has slowed down compared with the previous month.

4）R-PP

The price rise of r-pp slowed down significantly compared with the previous month, the price of homopolymer particles increased by 25 euros / ton, and the price of copolymer particles increased by 50 euros / ton. The supply of materials is sufficient, and the demand for r-pp is supported by the rising cost of raw materials and the replenishment of inventory by automobile manufacturers.

5）R-HIPS

In April, r-hips rose 50 euros per ton due to the sharp rise in the cost of raw materials. Due to the high price and short supply of native hips, buyers should turn to r-hips as much as possible. R-hips sales increased, resulting in short supply.

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Monomer price rise

Push up the price of primary plastics

In April, with the significant increase of monomer cost, the price of thermoplastic in Europe rose sharply again

The price of PE is consistent with the increase of ethylene monomer cost, while the price increase of PP is slightly lower than that of propylene. The price rise of PS and PVC is much higher than that of raw material cost.

Generally speaking, because the price is at such a high level, the supply is tight and the demand is insufficient.

The price rise of L / LDPE is 200-250 euro / ton, which is basically consistent with the rise of ethylene cost of 230 euro / ton. Under strong resistance, the rise of PP price failed to catch up with the rise of 225 euro / ton of propylene.

The price increase of PS exceeded the increase of styrene monomer sm360 euro / ton. SM production is highly energy intensive. The surge in SM prices reflects the sharp rise in natural gas prices and concerns about future natural gas supply.

In April, the price of PVC hit a new high, with an increase of 200 euros per ton, far exceeding the impact of the rise in ethylene cost on PVC production.

The supply is tight, the cost of raw materials rises, and the price of bottle grade PET rises further, with a three digit increase.

In May, crude oil, natural gas and polymer prices may rise further due to the continued uncertainty caused by the Russian Ukrainian war and tight supply. However, the economic slowdown and high costs may continue to depress orders.