Recycled resin markets are likely to see limited upside moving into 2023, with buyers not seeing much incentives in using recycled plastics, particularly if they were more expensive than prime material.
"It is much easier and cleaner to use prime material and there is no need to use recycled unless it is for branding purposes," a China-based trader said.
Demand for recycled plastics in the first half of 2022 had been lukewarm. It was mainly dominated by Asian exporters selling to brand owners that recycled to meet their brand's sustainability commitments, as well as to buyers in Europe and the US where there are mandates to use recycled material. But it was a challenge to maintain demand as recycled materials are sold at a premium over virgin materials delivered to customers, especially after considering freight costs.
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