Low availability and cheaper Asian prime products are dampening trade while the surge in chemical technologies is faltering.
The entire plastic scrap business, from collection, segregation, transport and recycling, has become more challenging in recent months. Most of those engaged in different stages of the waste management value chain have the same message: trade is down and business dynamics are changing rapidly.
The market remains uncertain as European recyclers confront weaker demand while material availability is also low. On the other hand, at the current price level of the European market, exports are not showing viability due to the low cost of prime in the Asian region. Trade volumes appear to be shrinking.
Low demand
European recyclers face the challenge of low demand from customers. In general, many recyclers have huge stocks of granules and grindings and are looking for sales. Apart from a few specific secondary streams where demand is very good, most secondary plastics are suffering and unable to compete against low-cost prime plastic. Many European recyclers are running at low capacities to keep their plants running.
The market has become more localised. Previously, trade was more likely between western Europe and central Europe. Now, due to high transport costs and the low value of recycled granules, there is only limited movement between these markets.
OECD rules
Upcoming restrictions on ‘waste’ movement to non-OECD countries may create opportunities for European recyclers to expand their business and capacities. From 21 May 2026, movement of plastic waste will be subject to pre-notification to all OECD and non-OECD countries.
Furthermore, from 21 November 2026 exports to non-OECD countries will be banned. Such restrictions will lead to higher availability of secondary raw materials in Europe.
Depending on the demand for recycled granules, this would create opportunities for European recyclers and a challenge for collectors and waste management companies to find a home for their plastic.
No choice
The weak economic outlook means harder times for recyclers. Low consumption and demand for finished products worldwide leave converters with little choice but to compromise their sustainability goals and concentrate on cost effectiveness.
Unless required by brands or forced by regulation, converters are not adopting processes to use recycled granules in their production processes. Lower prime prices are a major factor in the lower demand for recycled granules.
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