- Pricing divergence continues- Participants continue to
monitor the virgin market dynamics





In the week ending July 20, there was
weaker demand for black recycled plastic propylene pellets in Europe. However,
the market saw stability in the natural pellet market. The spread between natural and black pellet
prices continued to widen over the week due to divergence between demand
fundamentals. Due to slower demand, black pellet prices
dropped by Eur50-52/mt to Eur1,540-1,560/mt over the week. Natural
pellet prices remained stable at Eur2,330-2,350/mt, however. One recycler
stated that black pellet material prices are dropping "like a stone". The reduced
demand by consumers led to an increase in supply, according to market
participants. The market for upstream virgin polypropylene has
seen a decrease in demand. This is partly due to sliding prices. Recyclers
noted that buyers are reluctant to...