The recycled plastics market is continuing to face challenging conditions as virgin polymer prices remain on a downward path while freight costs from Asia are rising. Buyers are shifting away from recycled materials as the price gap between virgin and recycled narrows quickly, especially in PET and HDPE. Higher shipping costs are making Asian products — both virgin and recycled — less competitive in Europe and the US.

Key Market Dynamics

Virgin prices trending down, freight rising

Virgin polymer prices are still falling across major categories, while freight from Asia has risen sharply. This combination is reducing the cost advantage of recycled materials and pushing many buyers toward virgin options. Unless they need material urgently, converters and distributors are reluctant to add inventory.

Freight is a major competitiveness factor

Freight costs from Asia have increased by more than USD 1,000/FEU to Europe and the US, making Asian shipments less competitive. For cargoes shipped in June, arrival during the European summer holiday season is expected to further slow purchasing activity.

EU waste shipment rules reshaping the market

The EU’s revised waste shipment framework is increasingly reshaping supply chains in the recycled market. Lower-quality polymers are accumulating in Europe as export destinations outside the OECD are no longer available, while higher-quality recycled products are gaining stronger value from local European buyers.

Product-Specific Trends

rPET — demand returning, but virgin preferred

Demand for rPET is returning to pre-war levels, but this has driven virgin prices down, and buyers are increasingly preferring virgin over R-PET. Freight costs from Asia have risen by nearly over USD 1,000/FEU to Europe or US-bound destinations, reducing the competitiveness of Asian rPET.

rHDPE — Asian production slowing, premium maintained

Asian recyclers are lowering production rates as the war and economic slowdown reduce feedstock availability. In Europe, rHDPE continues to trade at a premium over virgin HDPE despite declining virgin prices. Demand in certain sectors is supporting this premium.

rPP, rPS & rABS — selective demand, Europe slowing

The recent price drop was supported by some demand from packaging applications. However, the European market is slowing as summer begins, and the gardening industry, which previously supported recycled material demand, is also fading.

Key Regional Insights

Middle East

Jeddah port is facing congestion, limiting the export volume of polymers from Saudi Arabia. US–Iran peace talks announced by President Trump are impacting oil price support, which is cascading into petrochemical feedstock weakness.

China

China is importing Vietnamese PP as Vietnamese cargoes show more attractive pricing than the Chinese domestic market. This reflects growing price competitiveness of Vietnamese material relative to domestic supply.

Turkey

Freight from China to Turkey is now at $9,000/FEU for PS and $7,000/FEU for PP, effectively pricing Chinese material out of the Turkish market. High freight costs are a key barrier for Chinese imports.

Near-Term Outlook

The market is in a transition period, with weak virgin prices and high freight costs limiting broad-based recovery. Instead of a synchronized upturn, selective strength is likely to prevail in specific grades and regions. Regulatory shifts and logistics costs will continue to shape market dynamics in the near term.