US Recycled High-Density Polyethylene (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 (4:00 PM CST).

All the information used to inform the assessment is published transparently on our 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 provide insight into what the market expects over the coming weeks.

• Prices heard flat to higher for June
• Near term described as steady

Demand for US recycled high-density polyethylene was stable in the week ended May 31, although June pricing was expected to be flat to higher.

One pellet buyer expected an increase of 2 cents for June, while one supplier kept prices steady from May levels.

It appeared that price movement depended on starting point, with flat pricing tending to be at the high end of May levels.

Some sources have indicated tight supply of natural bales, although some players report steadiness in both bale availability and resin sales.

Overall demand, however, is consistently lower than expected, as indicated by Berry Plastics’ May announcement it would close 15 of its US plants, representing about 6% of total operations.

Consumption of recycled HDPE into certain applications, such as pallets, was depressed, according to some sources, with demand reduced for freight as consumer purchases have shifted from goods to services.

The lack of demand has improved truck availability, however, and helped reduce freight costs by about 1-2 cents/lb on the month, sources said. That represents about a 17%-33% drop, from April costs of 6 cents/lb.

Platts assessed natural HDPE post-consumer bales at 79 cents/lb FOB Chicago on May 31, lower by 1 cent on the day, on tradeable levels heard at 79 cents/lb FOB Midwest.

Mixed-color HDPE post-consumer bales were assessed at 18.50 cents/lb FOB Chicago, flat on the day, below selling indications heard at 20.50 cents/lb FOB Midwest and above buying indications heard at 17 cents/lb, considering market feedback of stable pricing and demand.

Natural recycled HDPE pellets for blowmolding applications were assessed at 134 cents/lb FOB Chicago, stable on the day, considering June selling indications unchanged on the month at 138 cents/lb delivered Southeast, normalized to FOB Chicago based on trucking costs heard at 4-5 cents/lb, and considering feedback of steady demand. Selling indications also were heard at an increase of 2 cents from May levels, but were not considered pending feedback on starting level.

Platts is part of S&P Global Commodity Insights.

This rationale applies to the symbols <ARNPC04>, <ARNPE04> and <ARNPA04>.