Europe’s recycled plastic market is currently experiencing a prolonged lean period that is coloured by volatility, lower prices and fierce competition. Experts speaking at the Plastics Recycling Show Europe (PRSE) in Amsterdam last week agreed that little is likely to change in the coming months. Indeed, the situation is actually expected to deteriorate in the near term and market consolidation is likely to intensify, Tom Hesselink, partner transaction services and private equity at the consulting firm Simon-Kucher remarked.
He noted that market turmoil had intensified starting in 2021 after a lengthy phase of stability. A short-lived period of rising prices gave way to mounting costs, supply chain issues, cooling demand and falling prices for virgin plastics. These factors have put growing pressure on the industry and caused prices to spiral downward.
Ton Emans, the president of the association Plastics Recyclers Europe (PRE), also expects the industry to stage a recovery and embark on a course of significant investment in the years ahead. Nonetheless, he underscored the threat posed by cheap imports of primary and recycled plastic into the EU. He urged legislators to better protect European companies against unfair competition....
