- Tariff uncertainty delays procurement decisions
- Supply constraints continue to support select grades
Regulatory uncertainty, volatile feedstock costs and elevated logistics expenses continue to shape the US recycled plastics market, with buyers limiting purchases to immediate requirements despite improving supply conditions in some segments. Market sentiment remains cautious as participants assess the potential impact of trade measures, freight costs and domestic supply constraints across recycled polyethylene terephthalate (rPET), high-density polyethylene (rHDPE) and recycled polypropylene (rPP).
The market presents a mixed picture. While recycled HDPE prices appear to be stabilising following a sharp correction earlier this year, rPET continues to draw support from high import replacement costs, and recycled polypropylene remains constrained by structural supply limitations.
Tariff uncertainty dominates market sentiment
Uncertainty surrounding potential Section 301 actions, overcapacity investigations and developments related to the United States-Mexico-Canada Agreement (USMCA) has encouraged buyers to postpone larger procurement decisions. Instead, most participants are maintaining short-term purchasing strategies until greater policy clarity emerges.
At the same time, elevated freight, fuel and labour costs continue to support delivered prices, partially offsetting weaker feedstock fundamentals in several recycled resin markets.
Logistics, import costs support recycled PET market
Seasonal increases in collection volumes have improved feedstock availability, placing downward pressure on bale prices. However, higher logistics costs, limited domestic recycling capacity and elevated import replacement costs continue to support recycled PET flake prices.
Pellet prices largely tracked flake production costs, while tight processing margins limited buyers’ willingness to pay higher feedstock prices. As a result, procurement activity remained cautious despite improving raw material availability.
Recycled HDPE market moves towards balance
The recycled HDPE value chain has corrected significantly from the highs recorded in May, reflecting lower virgin polyethylene prices, improved feedstock availability and softer seasonal demand.
However, the pace of decline slowed during July as firmer energy prices and geopolitical uncertainty increased cost support across the value chain. Natural HDPE bale prices stabilised towards the end of the month, although buyers continued to purchase only against immediate requirements.
The recycled low-density polyethylene (rLDPE) market remained comparatively balanced, with stable feedstock and pellet prices and premiums returning closer to historical norms.
Supply of rPP remains structurally tight
Recycled polypropylene continues to face the greatest structural supply challenge among the major recycled polymers. Although mixed-colour bale prices corrected sharply after peaking in May, the availability of consistent, high-quality recycled PP feedstock remains limited due to relatively low curbside collection volumes.
Natural rPP pellet prices have eased from their May highs but remain above year-ago levels, reflecting continued supply tightness despite weaker buying interest.
Outlook
Tariff uncertainty, elevated logistics costs and supply constraints are expected to keep buyers cautious, with procurement likely to remain limited to immediate requirements. While HDPE prices are stabilising, rPET continues to draw support from import costs and rPP remains constrained by limited feedstock availability, keeping market sentiment mixed across recycled polymers.
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