- Slow bullish outlook for 2022
- Arbitrage between Asia and Europe closed
Asian recycled low density polyethylene prices were stable amid thin trading Nov. 24
The outlook was bullish as undersupplied PE film is coupled with weak low value applications demand.
The arbitrage between Asia-Europe was closed as it was less than $200/mt and it remains difficult amid high freight costs and low volume of containers, traders said. Current shipping logistical issues means it will take longer for demand-supply balances to reach equilibrium, traders said.
Demand for recycled PE might pick up with more corporations moving toward green initiatives, and may displace some virgin PE growth in the medium to long term. Other barriers to increasing the supply of recycled plastics include poor quality of downcycled material, problematic additives in waste, limited waste collection schemes and illegal trafficking of waste plastic, all of which are expected to persist in 2022, traders said.
Export rules, such as those that slashed all mixed waste plastic scrap from Australia since July 2021, will tighten again in July 2022 to allow the export of only processed waste, further lowering scrap imports in Asia, sources said.