Modest Supply Pressure, Restocking Define European Recycled Plastics in February
The recycled plastics market in Northwest Europe (NWE) during February has seen broadly similar conditions to January, with weak demand across key end-use sectors, particularly automotive and construction.
Market activity has still largely driven by restocking demand. The disconnect between contract and spot volumes persisted, with arguments from sellers to increase contract volumes while buyers wait and see if greater spot volumes are more appropriate.
Market direction was primarily shaped by supply-side factors, including upstream outages and a modest rise in virgin polymer and olefin pricing. Weather-related disruption in parts of northern and southern Europe also contributed to logistical delays and intermittent supply tightness, providing
upward price support.
Pricing developments were mixed. Recycled polypropylene (rPP) posted its first increase since late November, rising €10/metric ton in the first week of
February to €765-€775/mt Delivered Duty Paid (DDP) NWE, where it has remained since.
Recycled high-density polyethylene (rHDPE) was flat month on month, maintaining the €50/mt mid-January increase for grey pellets.
Recycled polyethylene terephthalate (rPET) DDP NWE was also stable, holding the €10-€30/mt gains seen earlier in the winter period amid seasonally weak demand, while rPET DDP Spain flake prices moved €30/mt lower on the last week of the month.
Recycled low-density polyethylene (rLDPE) saw the most movement in price. Grey pellets rose €5/mt in the first week of February to €760-€770/mt while black pellets held at €665-€675/mt. Both grades increased €5/mt in week two, with black at €670-€680/mt and grey at €765-€775/mt. Further gains followed in week three, with black at €695-€705/mt and grey at €775-€785/mt and then stayed at these levels during the last week of the month.
Chinese Lunar New Year and the start of Ramadan were widely referenced in regional market discussions, though European participants reported limited
direct impact after adjusting logistics and production schedules in advance.
Industry developments included TCP Circular’s confirmation of a 100,000 mt/year recycling facility at the Port of Sunderland, U.K., and INEOS securing a $353 million French government grant to decarbonize its Lavera cracker and expand circular feedstock use.
Policy and corporate updates remained in focus. Germany replaced its 2019 Packaging Act with the Packaging Law Implementation Act, moving toward
mandatory national requirements.
LyondellBasell reduced its circularity target to 800,000 mt/year of recycled and renewable-based polymers by 2030, down from its 2020 baseline pledge of 2 million mt/year.
Additionally, the European Commission introduced a Delegated Act, the first such application of its kind that exempted wrapping and straps for pallets during transport from the 100% reuse requirement under the Packaging and Packaging Waste Regulation (PPWR).
With cautious buying patterns persisting, limited change is expected through the remainder of Q1 2026. Market participants broadly expect March to bring a gradual pickup as the market approaches an expected uptick in seasonal demand in the second quarter.
Reporting by Ellis Nichols, enicolls@opisnet.com