LONDON (ICIS)–Demand for mixed plastic waste in Europe from the mechanical recycling and burn-for-energy sectors is expected to remain weak into 2024 amid ongoing challenging macroeconomic conditions.
This has resulted in reduced industrial output which has blunted demand for burn-for-energy volumes, and from key mechanical recycling end-use sectors such as construction.
For burn-for-energy markets, only the defence sector has seen robust demand in 2023 owing to ongoing geopolitical tensions.
For mechanical recyclers, the low price of mono-material bales and falling prices for most finished recycled polyolefin flake and pellet grades in 2023 have removed the economic incentive to produce from mixed polyolefin bales that had been seen in 2022. This is expected to continue to be the case while bearish conditions persist across mechanical recycling markets. Estimations of how long this will be vary from player to player, although some sources expect that demand will remain limited at least through H1 2024.
Buying interest from chemical recyclers has remained firm throughout 2023, but the market remains too small to impact the overall supply/demand balance for mixed plastic waste.
Published by: www.icis.com
Mark Victory
28-Dec-2023
