Surging oil prices a bonus

Demand for secondary plastics is boosted temporarily by the impact of the Iran war on oil prices, although recyclers worry about impending new EU shipment

What happened

The European plastic recycling market remained under considerable pressure during the early weeks of 2026, as weak demand for recycled granules continued to weigh heavily on the industry. Across the region, recyclers were forced to operate at reduced capacity, not because of planned optimisation but just to keep facilities running in an environment where finished products were struggling to find buyers.

Why it matters

High inventory levels of recycled granules further discouraged production, creating a cycle in which limited demand translated directly into constrained operational activity.

This challenging situation was exacerbated by persistently low virgin polymer prices through February. With prime materials available at competitive rates, converters showed little incentive to shift toward recycled alternatives. The price gap between virgin and recycled polymers reduced the attractiveness of recyclates, placing additional strain on an already subdued plastic waste market.

Under typical conditions, export markets would help offset weak domestic demand of plastic waste but this channel also remained largely restricted. Türkiye was the only major outlet actively issuing import licences, while other key destinations were effectively absent from the market.

This news brief is based on reporting published by Recycling International on 2026-04-07. The original report is linked below.