Germany’s waste plastics market remained extremely tense in August. Merchants and recyclers reported full warehouses, lacklustre demand and continued pressure on prices. "Recycling is at a virtual standstill right now," one market player said, summing up the situation.
Several recyclers told EUWID that they had experienced a dramatic fall in orders in August. "Our prices have plummeted," insiders remarked. Downtimes taken by converters had further exacerbated the situation. A slight upturn in demand had recently been seen from neighbouring EU countries alone.
Amid this situation, industry associations representing plastics producers, converters and recyclers have against sounded the alarm in Brussels. In a joint letter to EU Commission president Ursula von der Leyen they warn that the plastics value chain is at breaking point. Without rapid intervention, there will be further declines in production, bankruptcies and job losses; decades of investment in innovation and plastics circularity are at stake, the letter's 28 signatories say. They recommend action in six strategic policy areas to reverse the downward trend.
The majority of EUWID respondents doubted whether recyclers would receive the support the letter called for. Hardly a week goes by without news of recyclers going out of business or filing for insolvency. Observers expect this trend to continue in the months ahead. One source remarked that, "Only businesses with deep pockets will be able to hold out until next year, when demand might improve."
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