Prices for waste plastics in Germany are still under pressure owing to the ongoing weak demand. Most prices fell yet again in July and no improvement is expected in August, either. The situation has deteriorated further compared with June, recyclers say. There are frequent reports of massive production cutbacks, extended holiday shutdowns and even short-time work.
Prices for post-industrial scrap, commercial mixed film and regrind often fell by €20-50 per tonne compared with June, but there were even reports of mark-downs in excess of €100 per tonne. Sales of regranulate were very challenging because some converters have warehouses full of very inexpensive primary plastics, especially polyethylene and polypropylene.
Demand is still extremely low, particularly since the construction industry has not recovered. In response, recyclers are curtailing production even more severely to prevent further inventory build-up. Many converters have also cut back their production or have announced extended summer stoppages of as long as three weeks in August.
Exports to the Far East were still stable in July, according to traders. In some cases, the export prices for post-commercial mixed film were even slightly increased as the month progressed, or at least maintained at the June levels. Meanwhile, exports of waste plastics to Turkey are also problematic, not least due to the weakness of the Turkish lira.
Read the full monthly report on the waste plastics market in Germany and access the price table and graphing tools here:
