PODCAST: Plastic recyclers need maximum protection as chronic overcapacity hits virgin markets

BARCELONA (ICIS)–Governments must do much more to protect recycled polymer producers in the west as rising oversupply in virgin markets, led by China, threatens to undermine their business model.

• Europe recycled polyethylene terephthalate (PET) producers face existential threat
• Feedstock prices soar while subdued demand, price of virgin, caps selling prices
• Growing global overcapacity depresses prices, margins for virgin plastic producers
• Recycler margins threatened, prospect of closures or bankruptcies
• EU’s single use plastics directive targets are not compulsory
• Lack of clarity on EU’s Packaging and Packaging Waste Regulation
• More trade barriers needed to protect polymer recycling sectors

In this Think Tank podcast, Will Beacham interviews ICIS Senior Recycling Editor Matt Tudball, ICIS Senior Consultant Asia John Richardson and Paul Hodges, chairman of New Normal Consulting.

Editor’s note: This podcast is an opinion piece. The views expressed are those of the presenter and interviewees, and do not necessarily represent those of ICIS.

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Read Paul Hodges and John Richardson’s ICIS blogs.