In the face of high production and energy costs and increasingly fierce competition from new plastic materials, the freight reduction has become the only psychological consolation for European waste plastic traders.

  Looking back to 2022, economies of all sizes and most industries around the world are facing many challenges, including the recycled plastics industry. At the beginning of 2022, the price of new materials rose steadily. In fact, the whole industrial chain of the plastic industry was in a positive upward trend in the first six months of 2022. During this period, the price of various types of waste plastics increased by about 20-25%.

  At the beginning of 2022, the price of LDPE natural color film packaging material was about 490 euros per ton, which had jumped to 600 euros per ton by June. The demand from the European recycling industry is improving, because the demand for recyclable components in packaging materials continues to increase.

The quiet second half of the year

  From the summer vacation to the end of 2022, many enterprises are waiting outside the market. Low consumption and high inflation have brought the economy to a standstill. During this period, the price of waste plastics fell by more than 30% from the peak price in the middle of the year.

  For example, the price of LDPE natural color film packaging material fell from 600 euros per ton in June to below 400 euros per ton, the lowest price in the year. It is not hard to imagine that the industry had expected strong market growth in 2023, but practitioners were disappointed with the reality.

  At the end of 2022, the spot listing price of WTI crude oil on NYMEX (New York Mercantile Exchange for short) was set at $80 per barrel. By the first week of January 2023, the listing price had dropped to about $72 per barrel. The sharp drop of 10% in just one week has had a negative impact on the market, and the price of new plastic materials has dropped by 79-80 euros per ton from the level in December.

The low price of new materials makes the demand for recycled particles low. In January, the price and demand of waste plastics were both in a low state.