Plastic recycling’s perfect storm

Several factors have converged to create significant challenges for recyclers. Sustained global overcapacity in ethylene production has lowered virgin polymer prices, while high energy prices have pushed up recycling costs in Europe. Meanwhile, government policies intended to offset some of the price premium and encourage manufacturers to incorporate more recycled material in their packaging have not kept pace with the price differentials, making it cost-effective to just use virgin polymer and pay the penalties. There are also suggestions from within the industry that some virgin polymer imports are being fraudulently passed off as recycled material, further undercutting domestic recyclers.