Cheap prime plastics have contributed to tightened margins for some plastics processors. | Nokwan007/Shutterstock
Rock-bottom virgin prices and manufacturing shutdowns tied to the coronavirus have put a significant squeeze on plastics recycling profits of late. Some operators, however, expect conditions to start improving soon.
Natural HDPE inched up this month, but most other post-consumer plastic grades are trading for lower prices.
KW has converted several of its extrusion lines over to produce recycled natural HDPE to meet demand for packaging.
The coronavirus has disrupted end markets for KW Plastics, moving demand away from industrial applications and toward packaging for essential products.
Over the past month, the price of baled PET containers has dropped by 12%, and natural HDPE continues to slide down from the record-high levels seen in January.
