Report for Spain

We are currently experiencing a mirage-like situation owing to the geopolitical tensions arising from the conflict in the Middle East. Virgin plastic is now more expensive and unstable than before; given that plastic is a petroleum derivative, it has suffered from the increased cost of the raw material itself, which in turn has generated speculative activity around its price. Suppliers have held on to inventories and aggressively raised prices, thereby affecting the supply chain.

All of these developments have presented an opportunity for recycled plastic, which is now emerging as a stable and competitive alternative.

Despite this situation, Spain’s failure to meet EU recycling targets is transforming current recycling practices. Although the country is a European leader in recycling PET, HDPE and LDPE, it is far from achieving these recyclability goals. Therefore, a deposit, return and refund system has been created which will become mandatory from November. Furthermore, Spain will continue with its tax on manufacturers and importers of Euro 0.45 per kg of non-recycled plastic. These measures are aimed at stopping the inevitable price differential that exists in stable market situations between virgin and recycled plastic, the latter being more expensive owing to implicit management costs.