Report for the USA

Conditions within the recycled plastics market are varied, with certain materials experiencing significant challenges while others are holding steady or even growing.

Over recent months, PET bales have seen strong demand from domestic and export markets, particularly Mexico and South East Asia. Mexico has experienced a significant expansion of its reclamation activities and this is expected to continue until the end of 2026. Consequently, Mexico has been aggressively purchasing PET bales to meet production needs, driving up bale prices in California and making it difficult for the US state’s reclaimers to compete. The high cost of doing business in California has exacerbated the challenge, with weak end-market demand persisting despite the recycled content requirement increasing to 25% this year.

PET bale demand and pressure from Mexico are unlikely to abate. In response, the industry in California is advocating for legislative action to incentivise in-state recyclers to sell material to local reclaimers, thereby looking to close the domestic loop rather than losing material to export markets. The California Plastic Market Development Payment programme, funded by the state’s bottle bill, provides much-needed support to California-based businesses.

Meanwhile, newly-inaugurated US President Donald Trump has pledged to impose tariffs on foreign countries to bolster domestic industries, although tariffs on Canada and Mexico have been paused at the time of writing. The potential impact on the domestic recycling industry is uncertain. Currently, inexpensive imports of virgin PET and recycled PET (rPET) are hindering domestic reclaimers’ competitiveness whereas tariffs could offer relief and stimulate end-market demand within the USA.

In California, there has been a slight increase in rPET demand for packaging applications as the berry season begins. It is hoped that pellet demand will also rise in anticipation of the summer months.

Demand and prices for natural HDPE have increased significantly. Since November 2024, prices have risen by double digits to an average of US$ 0.70 per lb at the time of writing owing to: higher demand through increased recycled content requirements; intensified competition as new buyers enter the market; large market players aggressively pursuing material to outcompete smaller buyers; and tighter supply because of lower sales volumes.

As a result, export buyers cannot compete with the strong domestic demand.

The market for coloured HDPE has remained flat for several months, largely because a major buyer has reduced its purchasing activity. At the time of writing, prices are hovering around US$ 0.09-0.10 per lb.

Meanwhile, the market for grade A LDPE has remained strong and stable, with prices ranging between US$ 0.19 and US$ 0.20 per lb. Domestic and export buyers are showing consistent interest, keeping this market robust. Demand for coloured LDPE is not as high but remains solid, with prices currently around US$ 0.10-0.12 per lb. Historically, the lowest-grade LDPE was exported to China, but this option is no longer available. As a result, this material faces sporadic markets and low values.

The market for polypropylene has improved thanks to a major buyer resuming purchases. This has driven prices up from US$ 0.06 to US$ 0.10 per lb. Increased competition for material from buyers domestically as well as from Mexico and Asia has contributed to rising demand.

In California, a ban has been imposed on the sale of polystyrene foodware, including items such as cups, trays and clamshells. This decision was driven by the polystyrene industry’s failure to meet the state-mandated 25% recycling rate. Markets for expanded polystyrene remain strong when the material is collected and densified by material recovery facilities. Prices at the time of writing range from US$ 0.20 to US$ 0.30 per lb.

The overall outlook for the plastics market remains uncertain owing to the potential impact of tariffs, which could significantly alter current dynamics. California’s PET market may emerge as a winner owing to its focus on circularity, although predicting outcomes is not easy. At present, cheap resin imports are creating significant struggles for domestic reclaimers, indicating that 2025 could be another challenging year for the recycling industry.