In February, German recyclers had to make more downward revisions in their regranulate prices in most cases. Primary plastics prices, which decreased again, continued to create pressure, spurring converters throughout the market to push for cuts to recyclate prices. In the majority of cases, price reductions were reported to be €10-20 per tonne in February, thus continuing the trend seen in January. Larger markdowns were reported for the better grades.
When purchasing, traders and recyclers were reportedly not able to get lower prices for all grades. The prevailing view on the market is that suppliers are still holding on to their waste plastics stocks in anticipation of higher prices. Most market participants said the outlook seemed “subdued” for the coming weeks.
The Far East export business remained tough: While sales of top-quality scrap film roughly matched the previous month’s levels, buyers were reticent about buying lower-grade films, which also impacted prices. Sellers are pinning their hopes on a market recovery in China, higher or at least stable prices of primary plastics and a seasonal upturn in demand once winter ends.
According to German traders, thanks to the slightly weaker euro and continued very low freight rates, business on the Far East export market has not deteriorated. Many believe the market will pick up again now that the Chinese New Year festivities have ended. Insiders reported that some special grades are still barely fetching anything. Mixed plastics were often only being accepted if the suppliers paid the processor to take them off their hands.
The full report on the waste plastics market in Germany including the price table appears in issue 05/2016 of EUWID Recycling and Waste Management on 2 March 2016. Online subscribers can already access it here: