Prices for waste polyethylene film have increased in Germany in August. Tight supply and "overheated" exports to China together with a weak euro fuelled price increases of €10 to €15 per tonne compared to July.
There were serious consequences to the hike, primarily for domestic and European recyclers, even if they were, on average, able to source raw material somewhat less expensively than their Far Eastern competition. The higher price for film scrap could not be passed on in the regranulate price, complained recyclers, who often saw themselves in a difficult situation financially.
In addition to market conditions, the lifting of the industry's exemption from the renewable energy levy was a source of vexation as this raised the companies’ electricity costs. Affected recyclers were short between €300,000 and a €1m, according to market insiders. This was particularly negative as 2014 was weaker for the business than 2013 had been. "We haven’t felt any signs of the reported recovery,” said a veteran recycler.