Recycled high-density polyethylene (R-HDPE) markets in Asia showed a modest uptick this week, with natural film pellet prices climbing slightly even as black blow molding grades held steady. Market sentiment, however, remains cautious as recyclers struggle to compete with cheaper virgin polyethylene.
A regional industry source told that, “The Asian R-HDPE natural film pellet market saw prices edge up by USD 5/mt, supported by a tradable discussion, although overall activity remained cautious. Sentiment was mixed, with many anticipating stable to weaker pricing in September, as virgin polyethylene continues to trade at significantly lower levels well below the cost of conversion for recyclers.”
This price disparity is straining the competitiveness of recycled materials and limiting demand growth, despite mounting long-term regulatory pressures. Industry participants noted frustration after UN negotiations in Geneva on a legally binding global plastics treaty ended in mid-August without consensus. While the Intergovernmental Negotiating Committee (INC) has pledged to resume talks, the delay has tempered expectations for near-term regulatory momentum.
In the short term, economics are eclipsing sustainability goals. With fossil-fuel-based virgin polymers remaining more cost-effective, many downstream converters and packaging producers continue to favor virgin HDPE, despite brand-level commitments to recycled content. This dynamic is constraining demand for recycled grades across Asia.
R-HDPE natural film pellets were assessed at USD 740–760/mt FOB Southeast Asia, up USD 5/mt from the previous week, while R-HDPE black blow molding pellets were unchanged at USD 520–540/mt FOB Southeast Asia.
