Plastics

The crux of the problem confronting the plastics recycling sector is the widening price gap between virgin and recycled material, which is pushing many customers away from the better environmental option. The end result is increasingly under-utilised recycling capacity and insufficient revenues. However, a new policy development in France offers some brighter news (...)

• China’s prime resin markets remain under pressure
• Recycled pellet markets struggling across Asia as prime resin prices fall further
• Global scrap plastics market plagued by collapsing margins and regulatory barriers

• Contraction in global recycled plastics industry
• India’s rPET demand collapses after postponed enforcement of 30% recycled-content mandate
• More capacity losses inevitable without oil price rise/spread of economic instruments

• PET reclaimers operating well below usual throughputs
• Encouraging drop in PET bale pricing
• Low-priced imports a major drag on domestic demand

• Continuing collapse of recycling capacity in Europe
• Multiple plant closures and cancellation of new projects
• Decline in demand for recycled products manufactured in Europe

• Strong growth anticipated in region’s mechanical recycling market
• Relatively calm third quarter for prices
• Oversupply of virgin plastics remains a headwind