Restocking, Marginal Price Movement Define European Recycled Plastics in January
Throughout January, weak demand has dogged key end-users of recycled plastics in Europe, particularly the automotive and construction sectors, coupled with ample supply that sustained buyers’ resistance to price increases.
Market participants have reported an ongoing disconnect between contract and spot volumes, with greater spot exposure being incorporated into contracts, reflecting 2025 pricing trends and the continued availability of spot material.
Market activity was largely limited to cautious restocking, resulting in minimal spot market movement across Europe. Broader economic and geopolitical uncertainties has also continued to weigh on sentiment.
Recycled polypropylene (rPP) prices were flat to December in January, while recycled low-density polyethylene (rLDPE) did increase by €20-30 ($24-$36)/metric ton early in January and stabilized thereafter, supported by higher virgin pricing in late December and temporary supply disruptions.
Recycled high-density polyethylene (rHDPE) was flat through mid-January, until grey pellets increased by €50/mt on a DDP Northwest Europe basis, while white and natural grades stayed unchanged. Recycled polyethylene terephthalate (rPET) prices fluctuated, with transparent pellets and flakes entering February up €10-30/mt on month.
Recycling capacity set to expand
Industry developments and capacity growth during January include a $57 million investment from Borealis in polypropylene recycling technology. Meanwhile, Lamor plans to expand recycling capacity in Finland by 40,000 mt/year, and Veolia confirmed its $95 million U.K. closed-loop rPET facility is on track to come online early this year.
With high operating rates, elevated costs, and continued import pressure, limited change is expected through the first quarter of 2026. Sentiment remains pressured by Sabic’s asset sale in Europe and from concerns that recycled plastics legislation could impact food-packaging producers later in the year.
Market participants largely expect February to be “more of the same”, one source told OPIS, with restocking inventories seen as the main driver of demand and continued marginal price movement across the recycled polymers markets.
Reporting by Ellis Nicoll, enicoll@opisnet.com