More Challenges for Plastics Recycling: Unfriendly Pricing and Changing Mandates

C-MACC Weekly Sustainability and Energy Transition Report

More Challenges for Plastics Recycling: Unfriendly Pricing and Changing Mandates

• 1^st Topic of the Week: We see another problematic year for polymer recycling in 2025, as we expect weakness in virgin polymer pricing and an increasing risk that packagers choose to walk back targets rather than pay up to encourage higher restructuring rates. Slower economic growth in 2025/6 would remove any surplus cash to pay for higher-cost consumer staples inputs.                                                                                      
• 2^nd Topic of the Week: Sticking with recycling, we look at the troubles in an oversupplied battery industry, which is impacting the viability of both the OEMs (Northvolt) and those trying to build recycling business – as battery prices fall, recycling incentives also fall – no different than plastics.
• Otherwise: We look at European carbon prices, stalling EV markets, and the demise of Danimer Scientific.

Exhibit 1: “A lot to do in the second half” – Companies are going to miss targets – so they change them.

Source: Company Reports and C-MACC Analysis