Did prices hit bottom last week?

Did prices hit bottom last week?

Prices have been really low the last few months and even though we have seen a few minor increases they have not lasted more than a week at a time.

When spot prices for commodities, PE and PP, drop below 1,00 EUR/kg we see a few strange effects. One of them is that recycled material and prime material are almost as expensive. Or cheap if you will. The fixed costs for recycling are quite high and even if collected materials come close to zero cost the reprocessed material still have to pay for sorting, transport, washing, grinding and reprocessing. There will also be material loss in the different steps and the recycled material have to cover the cost for this material as well.

recycle plastics

GPS thinks that the prices will not drop much further. Even if the global markets look just as weak as the Eurpean we think that there is a limit at about this level for what the polymer producers can hadle. If the price drom further we think that supply will be cut by closing production lines for a shorter time.