Plastics

Many grades of secondary plastics are enjoying good markets heading into 2008, with HDPE, polypropylene and polyethylene doing especially well, according to sources.

While the domestic market has eased off its buying for some materials in anticipation of the holiday, export demand is keeping material moving for the time being. A recycler based in the Midwest says he is getting calls from new exporters and buyers weekly.

"Demand is just as strong as it’s ever been, especially for PET and HDPE," he says, noting that pricing for HDPE has been rising steadily. In early December of 2007, colored HDPE was moving at 28 cents per pound, while clear HDPE was 38 cents per pound, according to the Midwest recycler. Pricing for clear HDPE was up $200 per ton compared to the same period in 2006, he adds, saying the incline was steady, with natural taking gradual steps and colored moving a bit faster.

A reprocessor based in the Southeast says HMW (high molecular weight HDPE) is in very high demand right now. She says her company bought some HMW directional bore pipe not long ago and is already out of the material. "We are looking for more of it," she adds.

LDPE film is still in demand, despite reported quality control problems Trex has experienced and the closure of the company’s Olive Branch, Miss., plant.

The reprocessor based in the Southeast says Trex’ Winchester, Va., facility is back in the market, buying material at a price comparable to what it was buying at before its quality control problems were announced in November. "The market has opened back up for us," she says, adding that Trex appears to be "back on track."

The Midwestern recycler adds that Trex still plays a significant role in the domestic market for LDPE film as a large buyer of material. However, he says his company is primarily selling this material to offshore consumers. He used to sell 80 percent to 90 percent of his company’s LDPE film domestically, but now only 20 percent of his company’s material goes to domestic consumers.

Super Sacks of polypropylene (PP) have "taken off" on the export market, with material moving at 19 cents per pound, the Midwestern recycler says.

Domestically, the reprocessor in the Southeast says the market is flooded with PP regrind currently. "Polypropylene end users always back off this time of year," she says, adding that she has seen a modest decline in pricing for parts and regrind. She predicts domestic demand and pricing for PP will bounce back in the New Year.

Generation of PP, according to a reprocessor in the East, has slowed. "We are finding a lower availability of polystyrene and polypropylene," he says, noting that the decline began a few months ago. This is counter to what he usually sees this time of year, when cleanouts often make more material available on the market. He cites rising resin prices as a factor.

Another factor affecting recyclers and reprocessors who export material is container availability. "Container availability has been a pain in the [rear]," the Midwest recycler says. Because of the tightness in container availabity, he says he’s had to make bookings a month in advance and make sure he has material available to load when the containers arrive. "I’m doing it in reverse of how I like to do it." He notes that other goods take precedence over recyclables and that a lot of containers are sitting at ports waiting to be unloaded.