Low demand continues to pressurise recyclate prices in January – UK

Low demand continues to pressurise recyclate prices in January – UK

Posted on January 23, 2026 by DrRossH in Plastic Recycling

In February, recyclers hope for a more positive outlook for demand and recyclate prices

Source: Low demand continues to pressurise recyclate prices in January – Plastics News

In December, standard recyclate prices fell across the board because of very low demand and a tendency to oversupply. In January, recyclate prices were either rolled over from the previous month or saw a small reduction.

R-PET producers trimmed prices by €20–30/tonne in December to stimulate sales. R-PET clear food-grade pellet prices declined by a further €20/tonne and clear flake prices fell by €40/tonne at the start of the new year. Coloured flake prices were mostly unchanged from the previous month. R-PET demand remains very low at the start of the new year. The positive impact on demand from the regulatory recyclate quotas has diminished and the price differential between clear food-grade pellet R-PET and clear flake and virgin PET prices remains very wide.

R-LDPE natural film prices fell by a combined total of €30/tonne in December and January due to low demand and competition from the lower cost of primary material. Translucent film material prices have declined by only €20/tonne over the same period. R-HDPE prices fell by €10–20/tonne in December and are mostly stable in January. R-HIPS prices were down by €10/tonne in December and have stabilised this month. R-PP prices are down €30/tonne over the last two months.

In February, recyclers hope for a more positive outlook for demand and recyclate prices. Demand is likely to pick up because of seasonal factors, the larger number of production days and replenishment of stocks at converters. However, it seems unlikely that demand will improve to any significant extent as many processors already have ample stocks and there is no sign of an economic upturn.

On a more positive note, the European Union plans to tighten controls over the mislabelling of cheap virgin plastic claiming to be recycled material to protect its recycling industry. To address this, the Commission plans to propose new legal requirements in the first half of 2026.

Polyethylene terephthalate (R-PET)

In December, R-PET prices fell €20–30/tonne because of the lower cost of bottle scrap and very low demand from the beverages industry. There was more than enough material available to meet the low demand even though recyclers further curbed production or closed plants early for maintenance.

R-PET clear food-grade pellet prices declined by a further €20/tonne and clear flake prices fell by €40/tonne at the start of the new year. Coloured flake prices were mostly unchanged from the previous month. There was no sign of a pickup in inventory replenishment or an improvement in overall demand because of the ongoing malaise in the European economy and the low number of working days in the month. Furthermore, a wide price differential between R-PET and virgin PET prices remains and the positive impact on demand from the regulatory recyclate quotas is now diminishing.

Recycled high-density polyethylene (R-HDPE)

R-HDPE prices dipped slightly during December as producers trimmed rates to shift volumes. Demand was extremely thin with many processors closing early due to the low order intake. Recyclers had plenty of stock to meet the low demand.

In January, few deals were settled early due to a late return to production for many converters. Most of the deals that were concluded settled with a price rollover from the previous month. Demand remains subdued because of the sluggish European economy, the short production month and the diminishing price gap between R-HDPE and virgin material.

Recycled low-density polyethylene (R-LDPE)

R-LDPE producers granted small discounts to shift output amid very low ordering activity in the run-up to the Christmas holidays. There was plenty of material available despite producers operating at reduced rates. Many producers and processors closed their plants early or began maintenance work because of the limited volume of business.

In January, low demand and the diminishing price gap between recyclate and standard material led R-LDPE recyclers to offer further discounts of €10/tonne for standard grades. Converters have sufficient stocks to meet the sluggish demand. The reduced number of working days in January also curtailed volume calls.

Recycled polypropylene (R-PP)

In December, R-PP prices were under further pressure from the lower cost of standard PP and recyclers were forced to trim rates by €10–20/tonne to move stock. Many recyclers and processors decided to close production by mid-month for an extended holiday.

R-PP recyclers once again reduced prices by €10–20/tonne in response to low demand and good availability. Demand remains subdued because of the sluggish European economy, the short production month and the diminishing price gap between R-PP and virgin material.

Recycled high-impact polystyrene (R-HIPS)

Very limited volumes of business were conducted in December as many processors and producers decided to close early for an extended holiday. R-HIPS prices were largely settled with a decline of €10/tonne over the previous month.

R-HIPS prices were largely stable once again in January as the rising cost of virgin material eased some of the pressure on R-HIPS prices. Demand remains subdued because of the sluggish European economy and the fewer number of working days in the month. Recyclers resumed production at less than normal operating rates after the holidays.