The year 2021 begins with unpredictability in the trading of recycled plastic material worldwide because many countries did not approve the new Basel Convention rules instantly when they came into force on 1 January 2021.
There was no clear information from importing countries regarding how localized legislation was being updated.
They are unable to respond to the questions asked by nations interested in exporting plastic scrap about how to secure consent to trade between them.
There was huge concern from recycled plastic material suppliers and buyers in the European market that this movement of plastic might have to stop as the rules were ambiguous.
In the year 2019, Europe exported on an average 1.85 million tonnes of recyclable plastic scrap and this amount was at stake due to this variability.
Plastic Scrap benefit
- The plastic scrap market got reasonable support due to the notable rise in prime plastic prices globally. Unavailability of prime plastic results in the use of recycled pellets across the globe.
- This unexpected change raised the plastic scrap market from its gloomy mood. As the demand increased for recycled pellets, a surge in the prices for plastic scrap.
LDPE Recycling natural film scrap, in January 2021 had traded at 245 EUR per tonne, rose by 20%, and reached 300 EUR per tonne by the end of February 2021.
Recycled plastic material prices overall rose by 10% during the month of Jan and Feb with great demand from traditional converters.
A huge amount of plastic scrap is still going to the Asian markets. If we differentiate the demand and price for recycled material & prime material, a big gap is visible.
Prime plastic prices rose by approximately 50% providing that no material would be available. Prices for Recycled plastic material jumped by approximately 10% in the same period.
This shows that remarkable potential remains for an escalated use of recycled material.
In the USA requirements and costing remain healthy for many grades of plastic scrap. So now one can buy Recycled plastic or sell them at great margins.
Polyethylene grades “are on fire” in terms of pricing and demand. In fact, all commodity grades have taken off in the USA.
While in Germany, Europe the Recycled plastic material suppliers slowed down somewhat in Germany in the month of July, thanks to the holiday shutdowns and summer holidays at some of the regrind producers’ plants and converters.
Even though some recyclers and traders so far reported a summer lull, in general, the demand was still said to be fine.
With few inconsistencies, prices moved sideways in July. Modest price increases were seen for only PE film scrap.
The prices have not increased so far because the Turkish buyers have not returned to the market.
If in future they return, the scrap film may become more costly again.
Turkish traders had not so far made any pick up in the purchase after Germany's ban on Polyethylene imports was lifted in July, insiders reported.
