May 19, 2025 (press release) –
Europe’s plastics recycling sector is facing a structural crisis created by sky-rocketing electricity prices and rapidly-rising labour costs, as well as more expensive storage and transportation, according to the latest World Mirror publication from the BIR global recycling organisation’s Plastics Division.
Recyclers are struggling with large stockpiles and low demand, leading to cost-cutting and even bankruptcies which have brought about a reduction in overall market capacity as well as a further undermining of progress towards the continent’s climate and recycling targets. These circumstances are also deterring investment in new capacity and advanced technologies.
Some recyclers have managed to introduce slight increases in their selling prices but profit margins generally remain razor thin. In effect, any increase in sales prices is falling short of compensating for the rising tide of production costs. A structural reduction in energy costs through price caps or targeted support measures is crucial to keeping the European circular model viable, it is argued in the Mirror publication.
Eastern Europe has seen stable-to-firm bale prices, with increases for Polish flake in response to high feedstock costs. However, converters outside the beverage sector are being drawn to cheaper virgin PET or imports, particularly from Turkey, where offers typically remain some Euro 100-200 per tonne below local flake levels.
From Scandinavia, it is reported that there has been increased demand for polypropylene and polystyrene, with quotes slightly higher than in the earlier months of the year. Premium and good qualities are moving at the same or slightly higher price levels.
China’s diversion of rPET cargoes to Asia following US tariffs served to intensify price pressure across the region, it is also reported in the Mirror. Meanwhile, imports of scrap plastics into South East Asia are facing growing restrictions: Thailand and Vietnam have tightened import controls, while Malaysia is conducting intensive inspections on almost every incoming container. It is estimated that tens of thousands of containers are currently stuck at Malaysia’s Port Klang, causing severe logistical bottlenecks. As a result, recyclers are struggling to secure raw materials for production.
Despite April’s enforcement of a 30% recycled content mandate for PET bottles in India, actual uptake has been limited to date because of buyer concerns over enforcement ambiguities.
In the USA, meanwhile, the market has been heavily influenced by a combination of recently-imposed tariffs, an influx of low-cost imports and major brands reducing demand for recycled materials by scaling back their sustainability goals. Particularly tough conditions currently surround PET as virgin prices are significantly undercutting domestic washed flake, prompting many end-users to switch away from recycled material.
On the US West Coast, the situation has been exacerbated by high bale prices as Mexican buyers are paying a premium for US bales to meet growing demand from newly-expanded facilities.
Despite evidence of oversupply and muted demand in the Middle East, governments and private players are actively investing in recycling: in Saudi Arabia, for example, there is a growing focus on smart recycling technologies and facility expansions; meanwhile, strong growth is forecast for Egypt’s plastics recycling sector during the second half of this decade on the back of stronger regulatory support and public environmental awareness.
BIR World Mirror". These detailed reports exist for Non-Ferrous Metals, Ferrous, Stainless Steel / Alloys, Paper, Plastics and Latin America and provide BIR members with up-to-date information on the respective commodity or market segment.
The report on Non-Ferrous Metals appears once every two months, whereas Ferrous, Stainless Steel, Paper and Plastics are published quarterly. Latin America is covered twice per year.
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