Prices of recycled plastic at "historic highs", says industry group

Global prices of recycled plastics have risen to "historically high" levels, according to recycling industry federation, the Bureau of International Recycling (BIR).

The Brussels-based group, which represents over 760 companies and 37 national associations across 72 countries worldwide, said that the rising prices are the result of new challenges in 2021 including trade uncertainties created by amendments to the new Basel Convention in January and sky-high shipping and freight costs.

Henk Alssema, chairman of the BIR plastics committee, said: "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 prices for raw materials. The previous super-cycle started nearly 20 years ago and lasted around 10 years.

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He added that this time last year, plastic recyclers were facing poor sales and large stockpiles, with many now having completely sold out.

"The upward trend in prices began this year and has continued to historically high levels," said Alssema, who is also Chairman of Dutch recycling company VITA Plastics.

He said that what was required in order to meet the new demand, is a focus on improvements in separation technology and on easier to recycle materials. However, he also gave a warning in relation to the challenges posed by the circular economy, saying that there were some concerns within the sector that there may not be enough material in the future.

Anticipated regulations mandating the use of recycled plastics in new products would lead to a further increase in demand, which could delay the supply of recycled materials to the plastics processing industry.

"We can state unequivocally that there is an extremely fragile balance in the transition to a circular economy. Yet 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.

"The quality of the plastic waste now going to incineration or to landfill will have to improve dramatically in order to supply the industry with raw materials that fit a circular model."

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He said that cooperation with the packaging industry was now "extremely important" in terms of sharing knowledge to ensure a larger percentage of recycled materials.

"Fortunately, we are moving in the right direction," he added.

Hank Alssema will be chairing an upcoming interactive discussion looking further into the issue at the BIR World Recycling Convention & Exhibition along with a number of Plastics Committee members and guest speaker Eelco Smit, who is Senior Director at the Philips Group Sustainability team.

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