Middle East Conflict Reshapes Global Recycled Plastics Market, Says BIR Report

SEATTLE (Scrap Monster): The new quarterly report by the Bureau of International Recycling signals a dramatic shift in the global recycled plastics market. Geopolitical events unfolding in the Middle East are affecting petrochemical supply chains, thereby impacting demand for recyclates.

According to the May 2026 World Mirror on Plastics report, the market has seen a revival after two years of low pricing, primarily attributed to the abundance of low-cost virgin plastics. Uncertainty across supply chains created by the conflict is resulting in sharp 20-30% rises in some markets and significantly pushing up the costs of both virgin PE and PP in relevant areas.

Further boosts to recycled plastic demand in Europe come from increased regulatory pressures, especially in Spain, with the advent of compulsory deposit-return systems and taxes on non-recycled plastic products. This is expected to continue reducing price gaps with virgin resins.

Recyclate procurement is being intensified in Scandinavia and the Far East. As such, recyclers in the Middle East are experiencing higher purchasing prices of recyclates as packaging manufacturers move to embrace the use of recycled pellets and flakes wherever feasible in their production.