Episode 1465: Sustainably Speaking: Recycling markets face near-term strain despite long-term optimism
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Summary
PRSE 2026 highlighted a fragile but cautiously optimistic recycling market, shaped by Middle East disruptions, weak demand, and regulatory uncertainty.
Across mechanical, chemical and emerging sectors, investment and long-term targets persist, but near-term capacity, demand visibility, and policy clarity remain key challenges.
Join ICIS recycling editors and analysts as they recap their conversations from the event and the main takeaways from the two days in Amsterdam.
Helen McGeough: International players remain committed to Europe long term, investing in rPET and polyolefins despite weak demand, while flagging certification complexity and the growing role of EPR-driven demand globally.
Mia McLachlan: Polyolefins markets show cautious optimism, with Middle East disruption boosting recycler demand but exposing LDPE capacity shortages and highlighting the gap to meet 2030 PPWR targets.
Nazif Nazmul: Chemical recycling faces a worsening mismatch between sustainability targets and financial backing, with weak offtake commitments and insolvencies (e.g. Plastics Energy) signalling risk to capacity growth.
Carolina Perujo Holland: Textile recycling is emerging but complex, with major regulatory drivers (WFD, EPR, Ecodesign) and challenges in sorting, traceability and economics requiring strong value-chain collaboration.
Matt Tudball: rPET outlook is highly uncertain, with tight bale supply, volatile virgin PET prices and possible summer feedstock shortages, but stronger buyer–seller relationships are stabilising the market.
Sam Lovatt: Rising virgin polyolefin prices are supporting recycled markets, but recyclers cannot fully pass through increases due to cost-sensitive end uses, limiting margin recovery and demand resilience.