Market Monitor MM-004 | 1–15 August 2026

2026.08.17 - 15:42

Regulation accelerates. The market is still hesitating.

The first half of August did not bring a single clear direction for the European plastics and recycling market.
Upstream costs came under renewed pressure, demand remained uneven, and recyclers continued to compete with attractively priced virgin material. At the same time, Europe's regulatory framework moved quickly: the PPWR became applicable, while the EU introduced new trade measures affecting the PET value chain.

Market Indicators

▲ Propylene: +€55/t in August
→ PP: upward pressure, but price pass-through remains unconfirmed

▲ Styrenics: prices moving higher, without a sufficiently verified quantitative change
▼ Recycled polymers: weak demand and processing volumes under pressure
▼ EREMA: revenue down 28%, to €235 million

▲ German automotive: production +3.6%
▼ German energy-intensive industries: production −1.8%

◆ PPWR: applicable across the EU from 12 August 2026
◆ PTA: anti-dumping duties of 6.1–13.3% on imports from South Korea and 24.1% on imports from Mexico


A market of contrasts

MM-004 captures a market in which the signals are still not aligned. Raw-material costs are attempting to move higher, but weak demand is limiting producers' ability to pass these increases through into polymer prices.

Europe is accelerating its transition towards circularity, while the economics of recycling remain under pressure. Competitively priced virgin material continues to weigh on recyclate demand, while EREMA's results point to a more difficult investment environment for recycling equipment.

Industrial signals are equally divergent: German automotive production increased by 3.6%, while output from energy-intensive industries declined by 1.8%.

At the same time, the PPWR has moved from the legislative calendar into actual application, while new anti-dumping duties on PTA are changing trade conditions in part of the European PET value chain.

The rules are becoming clearer. The market is not.
That may be the best description of the 1–15 August period.

MM-004 examines the gap between upstream cost pressure and actual demand, the current challenges facing European recycling, and the direction being imposed by the new regulatory environment — without turning missing market data into artificial conclusions.


Download the Full Report

Market Monitor MM-004 – European Plastics & Recycling Market
Reporting period: 1–15 August 2026
Access Link (pdf): Market Monitor MM-004