Report for the USA

Among all the plastic resins, PET has been the most severely affected by the surge in low-priced imports - both virgin and recycled. Its dominance in packaging and widespread use make it particularly vulnerable to global trade fluctuations.

In California, reclaimers are operating at a fraction of their usual throughputs, and in many cases below 50% capacity. Reduced shifts, workforce cuts and sharp pull-backs in bale purchases have become the norm. Planned facility expansions and fresh investments have been put on hold as operators shift into “survival mode” as they await market stability. The strain became more visible recently when a large reclaimer shut its doors, citing unsustainable financial losses and difficulty competing with imported resin. That challenge was compounded earlier in the year by unusually high bale costs. Across the industry, economic headwinds have slowed purchasing and, as mentioned above, kept expansion decisions on ice.

One encouraging trend has been the sharp drop in PET bale pricing, falling from US$ 0.29 per lb in May to around US$ 0.10 at the time of writing. While temporary, this offers some relief in terms of production costs and may help domestic reclaimers regain their footing. Even so, reclaimers have already endured nearly two years of sluggish demand and another closure could further destabilise demand.

Newly-imposed tariffs on both PET and rPET offer a potential bright spot: these have already prompted cancellations of export orders, although their full impact is unlikely to be felt until November when quarterly contracts reset. For now, importers are holding back on commitments while they re-evaluate cost structures. The combination of tariffs and lower bale costs is beginning to tilt conditions slightly back towards US producers - at least in the short term.

Natural HDPE prices spiked to record highs at the beginning of the year. The rally continued until May, at which point the momentum collapsed and prices were cut almost in half by mid-year. The slide worsened when a major buyer reduced its purchasing activity and pushed bids lower, compounding pressure from steady import volumes. Over the past two months, natural HDPE has steadied at roughly US$ 0.45 per lb.

Coloured HDPE has remained stagnant, constrained by limited demand and a lack of robust end-market outlets. Broader factors such as tariffs and uncertainty in the housing sector have capped growth potential, although some export buyers have been offering comparatively stronger prices.

On the LDPE front, the US West Coast lost a reclaimer this year, leaving only a single domestic buyer and export markets as outlets. The East Coast remains similarly flat, with one dominant buyer sourcing primarily through established contracts. Lower-grade LDPE continues to struggle the most, weighed down by weak end use.

US polypropylene producers are also under heavy strain from low-cost imports, with pricing sliding to US$ 0.04 per lb amid an uncertain outlook. A cooling housing market and tariff adjustments are already dampening demand, leaving little expectation of a near-term rebound.

Expanded polystyrene (EPS) has held relatively steady, although prices have softened somewhat since the start of the year. Despite Malaysia’s ban on plastic scrap imports, the country continues to purchase EPS, offering a critical end-market. Rigid polystyrene, however, remains challenged in the US market; there are few viable outlets overseas, even in Asia.

Looking ahead, the plastics industry continues to battle significant headwinds. While tariffs are beginning to shift trade patterns, low-priced imports remain a major drag on domestic demand and pricing. Unless new policy support emerges or broader market conditions improve, 2026 is shaping up to be another difficult year for reclaimers and recyclers. Thin margins, persistent uncertainty and limited demand will continue to suppress investment in facility upgrades and quality improvements. Among all the resins, PET is the most exposed and remains under the greatest pressure.