Plastics Recycling Affected by Low Virgin Resin Prices

Plastic extrusions, which are commonly completed using recycled plastics, are seeing a change in the focus on which materials are being used due to low prices of virgin resins.  This is causing challenges in the plastics recycling industry and may affect the choices that clients make in choosing which type of material they want to use in their next extrusion project.  Here are just a few of the trends in the recycled plastics industry that may change the choices that you make in the near term:

  • There is pressure on the costs of recycled materials. Currently, virgin PET costs are quite low which is effecting not only the recycling companies and their ability to sell recycled plastics to extrusion companies, but also the choices that are available for companies that are ordering custom plastic extrusions.
  • There are places that are still willing to pay more for recycled materials. Depending on where the products will be sold, consumers in places like California may be willing to pay more for end products that have been made from recycled materials.  There are still consumers and customers who prefer to use “green” products, regardless of the increased cost.
  • The recycling industry is facing challenges across the board. Plastics recycling saw one of the worst years ever in 2015, where exports were down five percent.  The reason for this decrease was largely due to lower commodity prices, which can make recycled plastics that much more expensive.
  • Huge demands for polypropylene (PP) are helping the market. Increased demand for PP can be used for injection molding and can be used in post-consumer recycled materials.

Get up to date information on the trends in plastics and injection molding from the experts at Extrudex.  We offer custom extrusions and have a wide variety of materials available.  Call now!