An editorial analysis examines whether recyclables prices may foretell a broader recession in the U.S. economy. | adison pangchai/Shutterstock
An editorial analysis examines whether recyclables prices may foretell a broader recession in the U.S. economy. | adison pangchai/Shutterstock
Eric Hartz (center) spoke on a panel with Kate Bailey (right) at the 2022 Resource Recycling Conference. The session was moderated by Sarah Edwards (left). | Big Wave Productions/Resource Recycling, Inc.
Recent years have seen a steady stream of announcements from chemical recycling operators touting technological breakthroughs. But two industry insiders recently issued a stern reminder to the market: Don’t forget about economics.
Recovered plastic end users Unifi and Greystone Logistics reported on increased profits recently. | Warut Chinsai/Shutterstock
Greystone Logistics is installing shredding and pelletizing equipment so it can purchase more lower-cost scrap polyethylene, as opposed to recycled resin. And Unifi is opportunistically buying PET bottle bales while it works to pass feedstock cost increases on to buyers of its recycled polyester.
August has brought precipitous drops in pricing for PET, color HDPE and polypropylene bales.
At Epsilyte’s Ohio facility the company is re-pelletizing used PS into expandable pellets for the safety helmet market. | Courtesy of Epsilyte
Insulative material producer Epsilyte is ramping up its capacity for recycling polystyrene with investments in its Ohio facility.
The upcoming Indorama facility will have an annual capacity of 1.1 million tons of PET and 1.3 million tons of PTA. | StanislauV/shutterstock
After a delay of several years, construction of a vertically integrated PET plant in Texas with an annual capacity of several million tons is slated to start up again in August.
Berry brand owner Driscoll’s has worked with its clamshell suppliers to boost the percentage of RPET derived from used thermoforms. | Courtesy of Driscoll’s
Clamshell containers used by berry brand Driscoll’s last year contained an average of 9% RPET sourced from used thermoforms. Continue Reading
July has seen sweeping drops in the value of PET, HDPE and PP, according to the latest pricing survey.
The national average price of post-consumer PET beverage bottles and jars plummeted 30% this month and is now trading at an average of 26.16 cents per pound. That compares to 37.50 cents per pound this time last month. Some regions are still trading as high as 35.00 cents per pound for spot loads, but others are offering as low as 15.00 cents. PET was trading at 23.55 cents one year ago.
The price of natural high-density polyethylene (HDPE) from curbside collection programs is also down by double-digit figures. Natural HDPE is selling for an average of 46.75 cents per pound, a 17% reduction from 56.19 cents last month. The price was 106.34 cents this time last year.
Color HDPE is down even more, having declined by 25%. This grade is now trading at 22.03 cents per pound. It was 29.28 cents this time last month. It averaged 56.78 cents one year ago.
The national average for polypropylene is down 27%, trading at 24.94 cents per pound. It was 34.13 cents last month and 39.22 cents one year ago.
Lastly, film prices have also been more consistent lately.
The national average for Grade A film is now at 22.56 cents per pound, compared to 22.94 last month and 18.81 cents one year ago.
Grade B film is still 8.19 cents, compared to 7.50 one year ago.
Grade C film is still averaging 1.13 cents per pound.
These prices are as reported on the Secondary Materials Pricing (SMP) Index. This pricing represents what is being paid for post-consumer recyclable materials in a sorted, baled format, picked up at most major recycling centers.
For a free trial to SMP’s Online Post-Consumer Pricing Index, visit the Recycling Markets website. You can also contact Christina Boulanger-Bosley at [email protected] or 330-956-8911.
Prices for bales of post-consumer PET bottles have fallen by over 5% since mid-May.