The steep rise in primary plastic prices has had a much stronger effect on the German market for waste and recycled plastics in April than it had in March. The situation on the primary plastics market drove up demand and led to firmer prices on the recycling market, especially for polyethylene (PE) film regranulate, higher-quality mixed commercial film, and selected polypropylene and post-industrial grades. However, market players stopped short of calling this a broad‑based recovery.
Suppliers of post-industrial regrind also reported brisker demand. Converters were once again showing greater interest in these grades due to the increase in primary plastic prices. Market participants said that prices increased by €20-50/t in April compared to March, depending on the material, colour and specification.
This development was once again triggered by the upheaval on the primary plastics market. The crisis in the Middle East, higher feedstock and energy costs, supply chain disruptions and transport logistics problems led to steep mark-ups for virgin plastics in April. PE and PP, in particular, became much more expensive, widening the gap to recycled plastic prices. At the same time, demand in key end markets remains lacklustre.
Higher freight costs and limited road transport capacity also adversely affected the recycling market. Market players reported fuel and crisis surcharges as well as delivery delays.
It remains the case that these factors are not resolving the underlying structural issues recyclers are faced with. While higher primary polymer prices did lend support to recycled plastic sales here and there in April, recyclers in Germany are still grappling with high operating costs and weak demand in certain end markets.
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