ICIS: U.S. Recycled Plastics Market Faces Tariff Uncertainty
Plastic Recycling | 2026-08-06 06:36:42
The recycled polypropylene (rPP) market continues to face supply challenges, with rPP natural pellet prices falling up to 20% from highs recorded in mid-May this year, ICIS noted.
By Paul Ploumis
SEATTLE (Scrap Monster): The uncertainties surrounding U.S. trade policies and fluctuating raw material costs are keeping the recycled plastics market on edge, said a new analysis released by market intelligence firm ICIS. The volatility in prices across key resin categories has triggered short-term purchases, it said.
The latest analysis highlights differing trends across categories including recycled polyethylene terephthalate (rPET), high-density polyethylene (rHDPE), and recycled polypropylene (rPP).
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In the recycled PET market, seasonal increases in plastic bottle collections have improved feedstock availability, putting downward pressure on bale prices. However, prices continue to remain supported due to higher transportation, labor, and fuel expenses. ICIS said recycled PET flake prices remain firm because of high import replacement costs, limited domestic processing capacity, elevated freight rates, and uncertainty over future trade measures. Also, pellet prices have largely followed flake costs.
The recycled HDPE market has shown signs of stabilizing after a sharp decline from price peaks recorded in May. Recycled low-density polyethylene (rLDPE) prices, meanwhile, have remained relatively stable.
The recycled polypropylene (rPP) market continues to face supply challenges, with rPP natural pellet prices falling up to 20% from highs recorded in mid-May this year, ICIS noted.
POLL
What is the biggest challenge facing the recycled plastics market today?
Frequently Asked Questions
- What is driving caution in the recycled plastics market?
Uncertainty over U.S. trade policies and fluctuating raw material costs are encouraging buyers to make short-term purchasing decisions.
- Why are recycled PET (rPET) prices staying firm?
High transportation, labor, freight, and import replacement costs, along with limited domestic processing capacity and trade uncertainty, continue to support prices.
- How are recycled HDPE and LDPE markets performing?
Recycled HDPE prices are stabilizing after earlier declines, while recycled LDPE prices remain relatively stable.
