German recyclers predict tough situation for recycled plastics

Germany’s plastics recyclers are in a “critical situation” because of the coronavirus pandemic. According to a news release from London-based ICIS, the situation for plastics recyclers could become worse in the coming months based on input from Germany-based Bundesverband Sekundärrohstoffe und Entsorgung e.V. (BVSE), an association representing more than 300 recyclers in that nation.

“The combination of falling prices for new plastics, falling demand and logistical difficulties put a considerable strain on recycling companies,” says Herbert Snell, BVSE’s vice president. “We see tremendous problems facing the industry because we are dealing with a global crisis scenario that could worsen over the next few weeks and months as the corona-related restrictions are gradually lifted.”

He adds that it will be months before the global economy starts again and supply chains function smoothly in Germany, Europe and internationally. 

BVSE has 43 member companies on the processing side. According to ICIS, these companies produced 1.7 million metric tons per year of recycled product, employed 2,750 people and had annual sales of 630 million euros (or about $708 million) before the COVID-19 pandemic. BVSE predicts these numbers will be down due to COVID-19. 

In late June, Germany’s government also announced plans to move forward with legislation to ban certain plastic products. 

Snell says the price decline for virgin plastics has made recycled plastics uncompetitive. He is calling for government measures that are aimed at reinforcing recycling and at accelerating the building of a circular economy in Germany and the European Union. 

“The coronavirus crisis should not be an excuse for slowing down efforts to protect the climate and the circular economy,” he says.