Report for Middle East

The market in this year’s second quarter was stable to slightly better than in the preceding three months. rPET has seen the strongest price recovery owing to steady beverage and packaging demand whereas rHDPE prices have been mostly stable, with slight increases for high-quality grades. The rPP market remains mixed because of competition from lower-priced virgin polypropylene. Recyclers face high collection and processing costs, thus limiting further price declines.

Export opportunities have improved, particularly into Asian markets. Longer-term supply agreements are becoming more common and recyclers have been seeing modestly better operating margins than in this year’s first quarter.

Prices are expected to remain stable or to increase slightly if virgin resin prices continue firm. Demand is likely to strengthen further during the second half of the year. Premium recycled grades - especially food-grade rPET and high-quality rHDPE - are expected to outperform lower-grade materials.

It should be added, however, that any significant drop in virgin resin prices could reduce demand for recycled plastics.