Wednesday, October 13, 2010

Asian Games cited as plastics prices soften

The price of recovered plastic bottles being sent for reprocessing overseas has fallen with the forthcoming Asian Games seen as a main factor
The export price for recovered plastic bottles has edged down for some grades due to a softening of the market ahead of next month's Asian Games, plastics reprocessors and recyclers have reported.

Some plastics recyclers, reprocessors and brokers told this week that there has been a softening in prices on material exported to the Far East - similar to what has happened around the time of Chinese New Year, where the country all but ceases trading.And, the major factor recounted by those within the plastic sector is the impending ‘Asiad' - which is the second biggest athletics event in the world after the Olympics - taking place in China over the middle of November.
The event starts on November 12 in Guangzhou, the city close to the port which receives recovered plastics from Hong Kong, and reprocessors claim operations will virtually come to a standstill in the city during the 15-day event.
"Prices are changing by the minute," said one sales and marketing manager. "Hong Kong will be closed due to the Asian Games and for the last two weeks they have been talking about not opening the gate until November."
Another reprocessor said that the most affected material was mixed plastic bottles, which had reached prices of £165 to £190 per tonnes in September 2010.
He said: "I think there is no doubt that [prices have come off], we are not big in the bottle market but we have heard exactly the same, particularly on the mixed bottle side of things. There they have come off between $30 and $40 per tonnes, so about £20 to £25."
Although the same reprocessor claimed that a decline in freight rates would help soften the blow of the drop in plastics prices.
"Before I was looking at $1,500 (£940) to $1,600 (£1,000) a box, now that is about $975 (£610), that is going to mean prices will stay a bit higher as buyers can afford to keep it higher."


This is a measure of where we are. The more we keep in this country the better we are and the better it is for us
One plastics reprocessor
The easing in prices comes off the back of an unprecedented rise in the price being paid for recovered plastic bottles, which has risen steadily over the past 12 months to reach £260 to £290 per tonnes for clear PET and £310 to £350 per tonnes for natural HDPE in September 2010.
It is understood that the price for clear and light blue PET has fallen by around £10 to £20 per tonnes to stand at around £250 to £270 per tonnes, while natural HDPE has dropped to around £300 per tonne.
One purchasing manager said that the price decline was not being felt in all plastics grades, such as film. He said: "I wouldn't say necessarily that we are seeing it across the board."
He added that the decline in price could potentially only affect those dependent on material being sent to Hong Kong before entering China.
He said: "A proportion of the stuff goes via Hong Kong and then on to China and because of tighter import regulations and tax on the stuff going through there it might be affecting the price. There are a number of other places where the material can still go."
And, one reprocessor claimed that the price change was "not a big thing" and said that it was possibly a "long-awaited" market correction caused by the price reaching almost unprecedented prices in August and September.


The Royal Geographic Society is today (October 13) hosting an event discussing 'Plastic Pollution in the Ocean' in central London. 
Some within the sector have seen this decline in export prices as an argument for greater support for domestic bottle markets. Advocates have voiced concern that British based plastics business have traditionally suffered from material being shipped to export due to a more competitive rate being offered - particularly by the Far East.
One reprocessor said: "This is a measure of where we are. The more we keep in this country the better we are and the better it is for us. Some people are paying a bit more for mixed bottles [on export] but people will have to come back to us now and it is clearly a case of them having to put their tail between their legs."
Digg Google Bookmarks reddit Mixx StumbleUpon Technorati Yahoo! Buzz DesignFloat Delicious BlinkList Furl

0 comments: on "Asian Games cited as plastics prices soften"

Post a Comment