Uptick in demand and prices for waste plastics in Germany

Sharp price increases for primary material put
upward pressure on the recycled plastics market
05.03.2021 − 

There continues to be confusion surrounding Germany’s export rules for waste plastics. But over the course of February, German traders also competed successfully against buyers from Belgium and the Netherlands. Prices for good-quality scrap film from commercial sources rose markedly. There is demand coming from Malaysia, Indonesia and Turkey, and after a longer absence, now from India as well. Consequently, German recyclers also have to pay higher prices for scrap film.

For the most part, the tide has now turned on the waste plastics market. After a months-long sales crisis and some capacity reductions, the situation has now evolved into a seller’s market. In particular, the scarce and significantly more expensive supplies of primary plastics are making it easier for German recyclers to sell their goods. A certain sense of elation that the coronavirus crisis might soon be over is also providing upward momentum. In some cases, recyclers had to allocate their production and inventory volumes in February, EUWID was told. PP in particular is very much sought-after due to a shortage of the primary resin. But there is also significantly more interest in other polymers as well.

Those converters who maintained relationships with recycled plastics suppliers during the recent difficult times, despite the availability of cheap primary plastics, are now benefitting. Some recyclers have rewarded these loyal customers by charging them only moderate price hikes for regrind and recycled pellet. Converters who have returned to the recycled plastics market after a longer absence or who are trying to buy recyclate for the first time have either been out of luck or have sometimes had to pay significantly higher prices than regular customers.

The full report on the German waste plastics market appears in the print and e-paper issues of EUWID Recycling & Waste Management (05/2021) out on 10 March. Online subscribers can access the report immediately here:

Waste plastics Germany

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