Report for Spain

The plastics sector is facing a crisis owing to a weak economy, preferential tariffs and also US tariffs. Demand for plastics has declined, impacting the recycling industry in Europe. Despite a stabilisation in March, recyclers are struggling with large stockpiles and low demand, leading to cost-cutting and even bankruptcies. Prices for primary plastics are putting pressure on the market, and international tensions could affect freight movements.

Added to this is the uncertainty caused by the implementation in May of the new EU Waste Shipment Regulation, which prohibits exports to non-OECD countries. As of May 21 next year, exports of non-hazardous plastic waste (B3011) outside the EU will be subject to the prior notification and authorisation procedure. Furthermore, plastics exports to non-OECD countries will be prohibited as of November 21 next year.

This situation has raised concerns among collectors and exporters about the stability of the market and the future of their businesses. Asian recyclers depend on European supplies in order to operate and the lack of suitable raw materials could hamper their profitability and new investments in recycling. For their part, European exporters will face an oversupply as they will be unable to ship their material to markets further afield, forcing them instead to look for recyclers within Europe.