Hauler WM has shuttered its Natura PCR plastic film processing operations in Texas only months after starting up a new $150 million plant, amid lackluster market conditions.
“Due to adverse market conditions and decreasing customer demand for LDPE and LLDPE PCR pellets processed at Natura PCR, the plant has been temporarily closed,” WM told Plastics Recycling Update. “If market conditions and demand for PCR pellets improve, WM may evaluate the potential of re-opening the facility.”
Attempts by Plastics Recycling Update to reach key WM recycling staff by email were unsuccessful.
Natura unveiled it new film recycling plant near Houston earlier this year, while remaining opaque about previous plans for a facility in Indiana. At the time Brent Bell, vice president of recycling at WM, cited market volatility – including plant closures such as PreZero and Myplas, and new or restarting capacity from Nova, Trex and GDB – among challenges for the film recycling industry.
Echoing the European landscape, the challenging demand environment has exacerbated market headwinds for US recyclers, resulting in the closure of rPlanet Earth in California, downsizing at Evergreen Recycling, and the bankruptcy of chemical recycler Brightmark.
Macro-resistant film pricing
Despite unstable domestic demand, LDPE film bale pricing is remarkably consistent, due to the inconsistent availability of recycling-grade material. October bale pricing for both A- and B-grade film is flat from one year ago, at 18.75 cents/lb and 7.00 cents/lb, respectively, according to RecyclingMarkets.Net data, amid overall weak conditions.
In contrast, post-consumer bales of rigid plastics are hitting historic lows amid cheap PET imports, global PE oversupply and weak demand. PET bales have lost nearly three-quarters of value since October 2024, and HDPE color bales have shed 62% during that period. Not even natural HDPE bales, known for their relatively consistent high demand, have been immune. They have lost 10% of value compared to October 2024, despite surging to record high levels in the spring.
