BVSE Says Tough Market In Store for Global Plastic Recyclers

SEATTLE (Scrap Monster): The leading market service provider, the London-based Independent Commodity Intelligence Services (ICIS) foresees tough market conditions for plastics recyclers in the months ahead. The prediction is based on the input from Bundesverband Sekundärrohstoffe und Entsorgung e.V. (BVSE)- the association of recyclers in Germany. It noted that the plastics recyclers in the country continue to be impacted by coronavirus impacts.

According to Herbert Snell, vice president, BVSE, the recycling companies have been hit badly by notable decline in prices for new plastics, drastic fall in demand and logistical roadblocks. It will take several months before the supply chains return to normal operations in Germany, Europe and the entire world.

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The decline in prices of virgin plastics has affected demand for recycled plastics. The government should act immediately to promote recycled plastics and their consumption. In addition, the recent legislation by the government to ban certain plastic products is feared to be harmful for the recycling sector, he added.

The BVSE member processing companies had recorded annual production of 1.7 million metric tons per year of recycled product before the pandemic crisis. The production is likely to witness substantial decline in post-pandemic period.