R-HDPE Market in Germany Experienced Moderate Fluctuations in September 2024

The Recycled High-Density Polyethylene (R-HDPE) market in Germany witnessed moderate fluctuations in September 2024, as prices changed throughout the month. By the end of the month, the price for R-HDPE light pellets grade on FOB – Hamburg basis settled at USD 1,230 per MT, indicating the market's relatively balanced conditions during the month.

Despite some price instability, the overall growth in the R-HDPE market remained moderate, with a slight increase of 1% observed in mid-September, followed by a 1.6% decline in the subsequent week. Market observers at ChemAnalyst stated that the fluctuations were driven by a group of factors, including average demand increase from the packaging sector and an oversupply scenario that continued to affect the price trends.

During the first half of the month, the R-HDPE market was relatively stable, with prices holding stable for the first two weeks. However, in the middle of the month, there was a slight growth in prices as demand from the packaging sector exhibited modest recovery. This increase was short-lived, as prices decreased by 1.6% in the following week, changed by prolonged oversupply and average demand from key downstream sectors such as construction and automotive.

The automotive and electronics industries, which are among the leading consumers of R-HDPE, provided some stability to the market, though their demand was not enough to offset the oversupply of R-HDPE in the European market. Throughout the month, market participants reported that inventory levels remained high, and the steady influx of R-HDPE imports from European and Asian suppliers further worsened the oversupply scenario.

As with many recycled polymers, the R-HDPE market was affected by declining energy prices in September, which led to reduced production costs. The combination of low energy prices and sufficient availability of post-consumer HDPE materials encouraged recyclers to maintain steady production rates despite the moderate demand. The subsequent oversupply pressured prices, causing the slight decline observed by the third week of September.

Looking forward, market participants suggest that unless demand from key sectors such as construction and packaging improves significantly, R-HDPE prices may continue to face downward pressure in the coming months. Although the automotive and electronics sectors may offer some support, it is clear that the balance between supply and demand will continue to be a key determining factor of price trends.

Overall, while the R-HDPE market in Germany experienced relatively moderate fluctuations in September, the market remains unstable, with oversupply conditions posing challenges for price recovery. The outlook for the rest of the year will depend on the resurgence in demand and inventory management by suppliers.