Plastic Recyclers Under Pressure: Cheaper Virgin Plastic from US and China

Plastic recyclers in the Netherlands are under increasing pressure due to the import of cheaper virgin plastics from the United States and China. These plastics are offered at prices that are difficult for Dutch recyclers to match. What is the cause behind this, and what does this mean for the sector?

The Origin of Cheap Virgin Plastic

The low prices of virgin plastic from the US and China are due to the production of shale gas. Both countries extract shale gas, which releases a by-product: lower quality oil. This oil is less suitable as a fuel, but excellent for plastic production. This allows American and Chinese producers to offer virgin plastic at much lower costs.

Challenges for Dutch Plastic Recyclers

Dutch plastic recyclers face high costs due to collection, washing, granulation and transport of recycled material. These higher costs are in sharp contrast to the cheap virgin plastic. The process of plastic recycling is labor-intensive and expensive, which puts pressure on the competitive position of Dutch recyclers.

Recently we have seen that these market conditions have forced large companies, including the Dutch company Umincorp, to go bankrupt. This illustrates the serious consequences of the price pressure on the plastic recycling sector. Consequences that have not gone unnoticed by the government, including D66 MP Mpanzu Bamenga. 

Solutions and Future

To relieve the pressure on plastic recyclers, some important steps are needed. Measures need to be taken to create a level playing field, such as tax breaks for recycled material or stricter requirements for virgin plastic. Investments also need to be made in new technologies that can help reduce the costs of recycling and improve the quality of recycled material.

At RCN, we stay up to date with the latest developments and look for solutions that can further strengthen the sector. Do you have any questions or would you like to know more about how we can contribute to a more sustainable future for plastics recycling? Contact us!