The extremely high demand for recycled plastics was driven by the shortage of plastic raw materials facing the Plastics Industry globally.
The Bureau of International Recycling (BIR) reported that prices for recycled plastics have risen to “historically high” levels around the world.
According to the Brussels-based international recycling federation, this rise in prices could be attributed to improvements in Europe’s economies following the relaxation of trade closures triggered by COVID-19.
Henk Alssema, chairman of the BIR plastics committee, told European media that: “This has produced a run on raw materials, creating an imbalance between supply and demand. Experts are already talking in terms of a commodity “super cycle,” which means a long period of rising commodity prices. The previous super cycle started almost 20 years ago and lasted around 10 years.
“The upward trend in prices started this year and has continued at historically high levels.”
Plastic resin shortage drives prices for recycled plastics
A year ago, at the start of the COVID-19 pandemic, waste pickers faced low sales and large stocks. Twelve months later, those stocks are now completely depleted, Alssema explained.
The extremely high demand was driven by the shortage of plastic raw materials facing the Plastics Industry globally.
In order to meet the demand, a focus on improved separation technology and materials that are easier to recycle were required, however, industry experts warn that there are still challenges in terms of the circular economy and material sourcing. recycled in the future.
“With anticipated regulations requiring recycled content in new products, the demand will only increase. Ultimately, this can lead to delays in supplying recycled material to the plastics processing industry. We can unequivocally affirm that there is an extremely fragile equilibrium in the transition to a circular economy. However, we all know that an extremely limited percentage of plastic is recycled around the world and that there is much more plastic waste available than the amounts currently recycled by our industry, ”Alssema said.