Hefty price increases for waste plastics in April

Regrind from waste plastic
Tight primary plastics supply is making the German
waste plastics market the most overheated
and complex it has ever been.
10.05.2021 − 

Once again, waste plastics were in high demand in April in Germany due to the extremely limited availability of primary plastics. Accordingly, prices for secondary plastics spiked last month. In some cases, recyclers were unable able to completely fulfil orders even for regular customers. There were widespread reports of volumes being allocated and orders cancelled. 

The market is more overheated and complex than it has even been, say traders and recyclers. Recyclers are growing increasingly concerned by market developments. Increases in sales prices for regrind and regranulate were being driven primarily by the desperation of converters, who are receiving barely any deliveries of primary plastics if they received any at all and are therefore turning to recyclate.

Some market participants doubt that this demand will last into the summer. Recyclers point out that they are unable to significantly improve their margins despite the higher prices because the commercial and industrial generators of plastic scrap are also charging higher prices for waste plastics. The rise in sales prices is basically being fully passed along in the purchase prices, say recyclers.

The full report on the German waste plastics market will appear in the print and e-paper issues of EUWID Recycling & Waste Management (10/2021) out on 19 May. Online subscribers can access the report immediately here:

Waste plastics Germany

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