Plastic prices across certain grades have begun to soften, as a result of a rise in supply and a drop in demand, say recyclers.
Some recyclers believe all grades will see a drop over the following weeks, predicting a £20 per tonne fall in price. However, others expect bottle prices to stay strong with the majority of price drops seen on plastic film.
Eco Plastics commercial manager Charlie Jones said: “We’re seeing a drop across most grades. In the last week, there has been a glut of material on the market. I can only assume this is because of the bank holidays and the warm weather we’ve had as people have probably been drinking more and so there are more plastic bottles being used and discarded.”
Jones explained that in addition to a surplus of material on the market the sales value for PET, pellet, flake and HDPE have all come down “dramatically”. Another £20 a tonne of material is expected to come off the price. “Plastic prices were getting silly with bottle prices getting higher and higher. Hopefully we will see more sensible levels now,” she added.
Eurokey commercial director Joe Bisland said demand from China had weakened, which had lead to price decreases. He added: “The bottle price hasn’t gone down. Film went down because China can now get better quality material and pay less money for it, so it is very difficult to get rid of the lower plastic grades at the moment.”