In March, the German market for waste plastics and recyclate slowly began to feel the knock-on effects of the Iran war. While the initial market shock mainly affected the primary plastics segment, the massive price increases for virgin polymers, especially polyolefins, have now generated upward momentum in the recycling market as well. However, while market insiders report an uptick in inquiries from converters asking about available volumes and prices, there has not yet been a widespread market shift towards recyclate.
The increased interest comes in response to the volatility on the primary plastics market. For PE and PP in particular, the energy resulted in growing price risks, surcharges and questions about availability in March. The driving forces were higher raw material and energy costs, rising freight rates, longer transport times and growing uncertainty about the supply of primary plastics.
EUWID Subscribers can read the Waste Plastics Market Report for Germany here:...
