Demand Erosion, Softer Pricing Loomed Over Europe Recycled Plastics in May
Spot recycled plastic purchasing in the European market slowed through May, following a period of panic buying in April that subsequently took the urgency out of demand, sources told OPIS.
Market direction in the fifth month continued to be driven by trends in virgin plastics and in the upstream markets, following the downward moves in virgin pricing amid increasing buyer resistance and concerns of affordability as prices remained high.
Rising import volumes into the region have encouraged domestic sellers to lower prices in line with buyer expectations, as urgency to secure stock has eased.
“It is no longer a take it or leave it price as it was through April,” one recycled plastics player told OPIS.
“Sustained buying activity through March and April has led to healthier inventory levels,” another source reported. “Everyone is well stocked and imports … fill the gaps where product from the Middle East would have previously been.”
Consequently, price momentum softened through May, stalling after the first week. Recycled polypropylene black pellet fell 3% over the month to €993-€1,003 ($1,158-$1,169)/mt DDP Northwest Europe (NWE). Recycled high density polyethylene (HDPE) pricing was mixed by grade: grey pellets declined 5% to €1,119-€1,129/mt DDP NWE; white pellets fell 5% before recovering 1% to €1,503-€1,513/mt DDP NWE; and natural pellets dropped 8% before gaining 1%, ending at €1,760-€1,770/mt DDP NWE.
Recycled low density polyethylene (LDPE) black and grey pellets saw steeper declines of 18-22%, assessed at €805-€815/mt DDP NWE and €852-€862/mt DDP NWE, respectively. Recycled polyethylene terephthalate (PET) also fluctuated during the month of May, with flakes assessed at €1,349-€1,359/mt DDPW NWE and pellets at €1,743-€1,753/mt DDP NWE at month-end.
At the Plastics Recycling Show Europe in Amsterdam on May 5-6 sentiment centered on near-term supply-demand uncertainty and regulatory change. The EU’s revised Waste Shipment Regulation, due to restrict exports of plastic waste from May 21, was widely discussed as a factor likely to increase domestic availability and pressure recycled polymer and bale pricing.
rPET market outlook mixed for June
Other developments in May included the return of TotalEnergies’ LDPE Carling facility announced on May 19, Nouryon’s new technology to increase recycled polypropylene use, the sale of the Gelsenkirchen Refinery to Klesc and Aequita, and Aequita’s transfer of European chemical assets to polymer producer Velogy.
Looking ahead, well-supplied inventories, weaker demand, and the upcoming holiday period are expected to drive further price fluctuations in June. Any price increases are likely to be slower than those seen in March and April. Recyclers also expect recycled pricing to track any expected decline in virgin material, driven by higher imports and the restart of regional production assets following maintenance.
Going into June, recycled PET is showing a different dynamic ahead of the seasonal demand peak in Europe. Domestic sellers remain optimistic, expecting further price increases, supported by summer seasonal demand for recycled PET beverage bottle and food-tray applications. While some decreases are possible, producers expect prices to remain above June 2025 levels.
–Reporting by Ellis Nicoll, enicoll@opisnet.com