The situation faced by German plastics recyclers again failed to undergo any fundamental improvement in May. There were occasional reports of marginally better business in connection with certain applications in June, which sellers took advantage of to raise prices slightly in some cases.
On the other hand, demand in many sectors, such as construction and the automotive industry, was still sagging. Plastics converters often still have stock on hand or they can purchase cheap primary plastics, for which prices decreased in May. Moreover, the many public holidays and bridge days reduced overall demand.
Recyclers told EUWID that despite their higher costs they have been unable to implement the necessary price increases for months. They have also often scaled back production, further eroding their profitability. The hopes for a national plastic tax, which could boost sales of recyclate, are starting to fade. Policymakers have now postponed addressing this issue until 2025.
Most of the respondents surveyed said the outlook for the industry was negative. One expert said some recycling capacities for post-industrial scrap would likely disappear from the market at the end of the year.
Our monthly market report covers polyethylene, polypropylene, polystyrene and PVC regrind as well as commercial PE film and post-industrial PP film. Subscribers can access the full report on waste plastics in Germany and price tables and graphing tools here:
