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Recycled HDPE prices spike, reflecting broader resin market volatility

Due to ongoing conflict in the Middle East and related supply disruptions in global oil markets, recycled resin prices are moving higher, with high density polyethylene seeing a notable spike.

Post-consumer HDPE mixed-color pellets, post-consumer HDPE mixed-color flake and post-industrial HDPE flake each increased 10 cents per pound.

The increases trace back to geopolitical instability, including the closure of the Strait of Hormuz and infrastructure damage in Saudi Arabia, which have tightened supply and increased volatility in virgin resin markets.

At the same time, demand signals remain mixed.

The housing sector — a key end market for HDPE — continues to soften. New housing starts slipped 0.2 percent for the 12 months ending in March and building permits fell 3 percent, according to Plastics News Economics Editor Bill Wood.

Construction applications such as pipe and decking rely on recycled HDPE for its durability and resistance to chemicals and moisture.

“What we tend to see in prices for resin, especially for natural [grades], is that they go up early in the year,” said Chaz Miller, ex officio member of the Northeast Recycling Council’s board. “Companies apparently are doing what they can to meet their commitments or legal requirements for recycled content, and then they get out of the market to buy cheaper resin.”

That dynamic raises questions about the consistency of brand demand. Miller argued that companies, particularly beverage producers, need to move beyond making pledges and start making purchases.

“They talk a great game. But like people would say back where I grew up in Oklahoma, when it comes to buying recycled, they’re all hat and no cattle,” Miller said. “They need to start putting their money where their commitments are.”

In his monthly “Northeast Recycling Markets” report, Miller added that strong export demand for U.S. virgin PE tied to the Strait of Hormuz disruption is helping push domestic virgin resin prices higher.

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* Source : https://www.plasticsnews.com/resin-prices/pn-2026-recycled-resin-pricing-hdpe-may/

* Edit : HANDLER