Republished by Newlife - Flexstone. All rights belong to the original publisher; see Source below.

Autumn reports from members of the Brussels-based Bureau of International Recycling’s (BIR’s) Plastics Division describe caution as the prevailing sentiment in Europe.

Division President Henk Alssema, also of Netherlands-based Inviplast, says the long-term outlook for recycling remains positive, but sufficient sales volumes and healthy margins are needed today to preserve Europe’s recycling capacity for the future.

Currently, he reports that the European plastics recycling market has yet to show the expected recovery following the summer holidays. “Demand remains subdued,” he says, “while ample material availability, international competition and geopolitical uncertainty continue to influence the market.”

Resumed industrial activity has not yet brought a clear upturn, he says, adding that buyers remain cautious and recyclers have little room to raise prices.

Meanwhile, he points to recent signs of firmer virgin material prices, particularly for polypropylene (PP), as well as upward price pressure for polyethylene (PE). “This could improve the competitiveness of recyclates, but a sustained recovery remains dependent on demand from plastics processors,” Alssema says.

Ongoing conflict in the Middle East and fluctuating oil prices have added more uncertainty to the market outlook, he says, noting that higher oil prices can make virgin materials more expensive while also increasing energy and transport costs for recyclers. “Improved recycling margins are therefore far from guaranteed.”

Max Craipeau of Hong Kong-based Greencore Resources Ltd. writes that recycled polyethylene terephthalate (rPET) prices weakened in September as seasonal demand and bale availability increased, and higher feedstock costs are not evidence of a recovery in consumption.

“The third quarter sharpened a distinction,” Craipeau says. “Oil can support recyclate prices, but it cannot guarantee demand.”

Additionally, Alssema reports that prices for recycled PE and PP range from “stable to slightly declining,” depending on quality and application, while high-quality natural and transparent high- and low-density polyethylene (HDPE, LDPE) grades have held up better than mixed-color and industrial grades. He notes there also is limited scope for price increases for recycled PP, and a broad-based price recovery has yet to emerge.

Long-term look

While Europe’s plastics recycling market remains uneven, the Packaging and Packaging Waste Regulation (PPWR) offers hope for the future.

The law took effect Aug. 12, with its requirements being introduced in stages. Its mandatory recycled-content requirements are scheduled begin Jan. 2030, or three years after the relevant implementing rules enter into force, whichever date is later.

The legislation offers long-term promise, but Plastics Division board members write that immediate effects are a different story.

“[PPWR’s recycled-content targets] strengthen the long-term investment case, but it does not fill order books today,” Craipeau says. “More available waste is useful only if someone buys the recyclate.”

In her report for Spain, Natalia Cruz Cayuela of Ferromolins SL says Europe’s recycled plastic market is being sustained artificially by the PPWR’s requirements, which also prioritize the use of locally sourced recycled plastic over imports through quotas and ban exports of plastic scrap to non-Organization for Economic Cooperation and Development (OECD) countries unless they can demonstrate sustainable management practices.

“Furthermore, harmonization criteria for the ‘end of waste’ status of plastic waste are being promoted to create a European single market, thereby facilitating recycling and circulation without bureaucratic hurdles,” she writes, adding that in June the European Commission published its Commission Implementing Decision (EU) 2026/1426, which regulates the mass balance accounting method.

In practice, however, she says, Europe's short-term outlook is bleak, marked by the “mass closure” of recycling plants since 2023.

“This has been caused by the sector’s lack of profitability, resulting from high energy costs, a lack of local demand and unfair competition from cheaper virgin plastic and plastic recycled in Asia—primarily China—where sustainability standards are lower than in Europe,” Cruz Cayuela says. “Ultimately, we must rely on these new European regulations to transform the viability of our sector in the long term.”

Source

- Recycling Today (2026-10-12) - Original article: BIR reports describe caution in European recycled plastics market - https://www.recyclingtoday.com/bir-reports-describe-caution-in-european-recycled-plastics-market