Platts Asia Recycled HDPE Assessments

Platts assessments are based on market information, including, but not limited to, firm bids and offers, and trades reported to the editor up to the close of business (4.30 pm Singapore time) on each day.

All the information used to inform the assessment is published transparently on Platts platforms as "heards". An assessment rationale is published explaining what the assessments are and how they have been reached.

A weekly market commentary accompanies the price assessments and rationale, which highlights the most important trends that have affected the markets that week and provides insight into what the market expects over the coming weeks.

• Lack of legislation for use in Asia
• Chemical recycling of interest to producers

Platts assessed Asian recycled high density polyethylene prices stable to weaker on the week amid low demand.

Sources said they were not interested in buying recycled material as prime resin prices were low.

Traders said there had been some debate on where the actual prices with certification were, as although prices were heard higher, it was not confirmed with the buyers and some traders said buyers were rejecting paying higher to fulfil their recycling pledges, and that some brand owners were not committed to fulfilling their pledges.

Traders in Asia said there was no plastic tax yet, unlike in the UK where plastic packaging which did not contain at least 30% recycled plastic was charged GBP210.82/mt from April 1.

Sources said they were looking at certifications such as SGS, GRS and other country-specific regulations to qualify their recycled product. Many producers were looking at investing in chemical recycling.

With chemical recycling, plastic waste streams can be converted back into feedstock for the chemical industry and these products have the exact same properties as those manufactured from fossil feedstock, hence sources said chemical-based feedstock should follow prime resin in terms of prices.

Platts assessed Asian recycled high density polyethylene natural film pellets stable from the previous session at $810/mt FOB Southeast Asia May 30 on thin trade.

Platts assessed Asian recycled HDPE black blowmolding pellets stable over the same period at $610/mt FOB Southeast Asia on thin trade.

Platts is part of S&P Global Commodity Insights.

This rationale applies to symbol(s) <PHALH00>.