International Trade Body Released Latest Plastics Market Update

The BIR noted that the prices for recycled material are unlikely to increase, at least during the next couple of months.

SEATTLE (Scrap Monster): The Bureau of International Recycling (BIR) has announced publication of its latest plastics market update.

According to BIR, many European countries that were able to control the spread of Covid-19 pandemic through strict lockdown measures are being threatened by a second wave. The European markets have been witnessing slight improvement. Also, demand for recycled materials has been recording marginal uptick. The emerging second wave poses threat, not only to the global economy, but also to the worldwide recycling industry.

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The BIR noted that the prices for recycled material are unlikely to increase, at least during the next couple of months. The prices for LDPE, HDPE, PP and HIPS had climbed higher slightly during recent months. However, there seems to be no drivers for further prices increases during the upcoming months.

Moreover, significantly higher stocks with companies may lead to reduced orders. Especially, flow of recycled materials from Europe to China is likely to witness notable decline, BIR said. The Chinese updation of import standards of recycled plastics will impact the import trade of many plastic scrap such as granules. Several other countries in the region are likely to announce new trade restrictions.

BIR foresees no decline in the volume of newly-produced plastics, but expects the sales of recycled plastics to decline sharply.