Report for Middle East

The recycled plastics market in the Middle East has changed significantly since the beginning of the year. The biggest shift has seen the market move from being relatively balanced to a tighter, more volatile state because of petrochemical disruptions linked to the Iran conflict and logistics pressure around the Strait of Hormuz

At the start of 2026, recycled HDPE and PET prices in the Middle East were increasing only slightly because supply and demand were still relatively balanced. Now, prices for both virgin and recycled plastics are rising much faster.

Virgin polyethylene and polypropylene prices have jumped because Middle East petrochemical exports have been disrupted by the Iran conflict and the uncertainty surrounding passage through the Strait of Hormuz. Some reports mention PE and PP price increases of 30-50% in affected markets.

As virgin resin has become more expensive, converters and packaging companies have shifted towards the use of recycled pellets and flakes wherever technically possible.

So whereas 2026 began with relatively sufficient supply, with recycling plants operating steadily and with manageable procurement, the current situation sees tightening scrap availability and converters competing harder for clean feedstock. Some recyclers cannot secure enough post-consumer material. At the same time, logistics costs remain elevated.