BIR Outlook Signals Continued Volatility in Global Plastics Recycling Industry
In the United States, inexpensive virgin resin is eroding demand for recycled feedstock, compressing margins and limiting profitability.
SEATTLE (Scrap Monster): The February 2026 quarterly report from the Bureau of International Recycling (BIR) Plastics Division signals cautious optimism for Europe’s plastics recycling industry, even as global market conditions remain strained.
According to the latest World Mirror, the European Commission has outlined initiatives aimed at stabilising the sector, including harmonised EU end-of-waste standards for plastics to facilitate cross-border trade in recyclates. Policymakers are also refining recycled-content requirements, particularly for PET, while encouraging closer collaboration across the recycling value chain.
Despite these policy signals, the industry continues to grapple with weak utilisation rates, insolvencies, plant closures, and deferred capital spending. Although regulatory-driven demand supports high-grade recycled materials, broader markets remain highly price-sensitive and fragile.
In the United States, inexpensive virgin resin is eroding demand for recycled feedstock, compressing margins and limiting profitability. Export demand is mixed, with Mexico purchasing on a spot basis and Southeast Asia showing muted interest. Similar pressures are evident in Asia and the Middle East, the BIR report noted.
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