Posted on 14/10/2016 in category Plastics
BIR World Mirror on Plastics - Issue October 2016
International Scenario for the Plastic Scrap Market
The European plastic scrap market has been fluctuating significantly in the last two quarters. The market was gaining and then losing confidence very quickly even with a slight change in any of the factors relating to plastic scrap. In contrast to the first quarter of this year when plastic scrap prices improved, the subsequent two quarters were more like a roller-coaster ride.
April was a good month in which prices climbed under support from increasing crude oil values. By the end of May, prices started falling owing to less demand and a higher availability of plastic scrap following the ban on imports into India. In June, when crude oil prices moved beyond US$ 50 per bbl, the market had some of its confidence restored.
Prices also started climbing in the first week of July when the Indian Ministry of Environment, Forests and Climate Change announced an amendment to the “Hazardous and other waste management rule”, by which some of the plastic recyclers operating in Special Economic Zones received permission to import plastic scrap. In response to this news, LDPE film prices immediately jumped Euro 25-35 per ton. Indian buyers were aggressive in their purchasing as they had not bought any material in May or June.
Crude oil prices lost ground by the end of July, falling almost 10% in the final 10 days of that month. Crude oil was around US$ 46 per bbl on July 21 but declined to US$ 41.50 by July 28. This once again introduced some negative sentiment into the market (...)
by Surendra Patawari Borad
Gemini Corporation NV (Belgium)
Chairman of the Plastics Committee