Chloe Zhang
The price of recycled plastic varies depending on the type of plastic and the region. For example, in the United States, the national average price of post-consumer PET beverage bottles and jars was 8.63 cents per pound in 2021, while the price of post-consumer natural HDPE was 70.25 cents per pound in the same year. Other types of recycled plastic, such as LDPE, LLDPE, and PP, also have varying prices based on their grade, use, and location. The price of recycled plastic is subject to change over time, with reports indicating an upward trend in prices in recent years.
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What You'll Learn
The cost of recycling plastic is $500/ton
The cost of recycling plastic varies depending on several factors, and different types of plastic have different values. However, according to a 2024 report, the cost of recycling plastic is estimated to be $500/ton. This price is specifically mentioned in the context of achieving a 10% IRR (internal rate of return) with an upfront capex (capital expenditure) of $1,000/Tpa (tonne per annum) at a mechanical recycling facility.
Mechanical recycling is the most common method, used for PET, HDPE, polypropylene, PVC, and polystyrene. This process involves several steps: collecting and aggregating plastic waste into bales, transporting it to a recycling facility, shredding it, sorting, washing, drying, melting, and finally, re-pelletizing the clean plastics of the same grade. The economics of plastic recycling is sensitive to factors such as labour, energy costs (electricity and heat), transportation distances, feedstock costs, and CO2 intensity.
The prices of recycled plastics fluctuate over time. For instance, the national average price of post-consumer polypropylene experienced a significant increase from 11.69 cents per pound in January to 18.44 cents per pound, while recycled PP was at a low of 3.69 cents per pound in July of the previous year. Similarly, Grade A film witnessed a price jump from 10.84 cents to 11.13 cents per pound, while Grade B film increased from 3.63 cents to 4.38 cents. The price of corrugated containers (PS 11) remained stable at $76 per ton.
The cost of recycling plastic is influenced by the demand for recycled materials and the efficiency of the recycling process. Recycling facilities aim to balance the upfront costs, ongoing expenses, and revenue generated from selling recycled products. The $500/ton price point mentioned earlier represents a target price to achieve a desired IRR, considering the specified capex investment.
It's important to note that the recycling industry faces challenges, such as the impact of imported resin on the US plastics recycling system and the need for accurate sorting of waste materials, which influence the overall economics of recycling plastic.
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Recycled plastic prices are rising
The price of recycled plastics is on an upward trajectory, with several factors influencing this rise. Firstly, the cost of recycling plastic itself plays a significant role. The process of mechanical recycling of plastics involves multiple stages, from aggregating and transporting waste to sorting, washing, drying, melting, and re-pelletizing. This labor-intensive process, particularly the precise sorting of waste materials, contributes to the overall cost. Additionally, the distance of transportation impacts the price, with longer distances resulting in higher transportation costs.
The specific type of plastic also affects the price. For instance, the national average price of color HDPE has increased to 18.91 cents per pound, with some regions reporting prices over 23 cents per pound. This upward trend extends to natural HDPE as well. Polypropylene, another type of plastic, has witnessed a significant jump in price, now trading at 18.44 cents per pound compared to 11.69 cents in January and a low of 3.69 cents last July.
The cost of recycling plastic is further influenced by external factors, such as the spike in post-consumer resin imports, which reclaimers argue is detrimental to the US plastics recycling system. Additionally, there are concerns about the authenticity of recycled content in imported resins. These factors collectively contribute to the rising prices of recycled plastics.
Furthermore, the economics of plastic recycling plays a crucial role in the rising prices. To achieve a 10% IRR (internal rate of return) of $1,000/Tpa capex (capital expenditure), a product price of $500/ton is required, with a mechanical recycling facility having a CO2 intensity of 0.3 tons/ton. This cost structure highlights the economic considerations involved in the plastic recycling process, which ultimately influence the price of recycled plastics.
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PET container prices fell 30% from June to July
The price of recycled plastic varies depending on the type of plastic and the region. For example, the national average price of post-consumer PET beverage bottles and jars in the United States was 15.09 cents per pound in May 2024, up from 14.22 cents per pound the previous month. Regional contracts were yielding 16-18 cents per pound.
However, PET container prices fell 30% from June to July 2025, as part of a general price decline for curbside plastics bales. The national average price of post-consumer PET beverage bottles and jars averaged 10.22 cents per pound, compared to 14.59 cents per pound the previous month. Regional contracts were yielding around 10-12 cents per pound.
The price of recycled PET containers increased by nearly 30% over the course of 2021. In February 2021, the national average price of post-consumer PET beverage bottles and jars was 8.63 cents per pound, up from 7.58 cents per pound the previous month.
Other types of recycled plastics have also seen price changes. For example, the national average price of post-consumer natural HDPE increased to an average of 32.44 cents per pound in May 2024, up from 30.63 cents the previous month and 74.59 cents the previous year. The price of color HDPE also fluctuates; in May 2024, it averaged 23.94 cents per pound, compared to 20.50 cents the previous month and 16.09 cents the previous year.
Overall, while there may be short-term fluctuations, the price of recycled plastic generally seems to be on an upward trend.
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Natural and coloured HDPE prices are rising
The price of recycled plastic is on the rise, with natural and coloured HDPE prices continuing an upward trend that began in late 2024. This trend has seen prices for curbside plastics bales vary, with PP and natural HDPE rising 33% and 11% respectively, while PET and colour HDPE saw modest declines.
HDPE (high-density polyethylene) is a versatile plastic with many applications. It is used for blow moulding due to its chemical stability, mechanical strength, and heat and cold resistance. It is also used for injection moulding because of its strength, low cost, and impact resistance.
The price spread between natural and coloured HDPE reached a record high in February 2025, with natural bales priced at 90.88 cents, nearing the historical high of 108.44 cents from September 2021. The spread stood at 85.07 cents per pound, the highest level the index has tracked in seven years. This is due to natural bale pricing increasing while mixed-colour bales remain near historic lows. Natural HDPE is more versatile than coloured HDPE, as it can be dyed to desired colours, whereas coloured HDPE is limited to black or grey and is mostly used in drainage applications.
The price increase is suspected to be caused by an increase in demand, with companies having post-consumer material usage goals to meet in 2025. Natural HDPE is in demand because of its versatility and ease of dyeing to any colour.
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LDPE film is a good conductor of chemicals
LDPE, or Low-Density Polyethylene, is a thermoplastic polymer with a range of properties that make it a good conductor of chemicals. LDPE film is highly flexible, with good ductility, allowing it to be bent and shaped without tearing or deforming. This flexibility, combined with its low crystallinity, makes it ideal for processes like injection moulding and other manufacturing techniques. LDPE has a low melting point, ranging from 105 to 115°C, which is advantageous for heat sealing and certain manufacturing processes.
LDPE's chemical resistance is one of its key characteristics. It is highly resistant to many chemicals, which makes it suitable for industrial and laboratory settings where it may come into contact with various substances. This resistance to chemicals also ensures that products made from LDPE, such as children's toys, are not easily damaged by contact with water or saliva. LDPE's chemical resistance, along with its flexibility, makes it useful in medical applications, such as the manufacturing of orthotics and prosthetics.
LDPE film offers good protection against external contaminants, including moisture, extending the shelf life of products. Its electrical insulation properties are also notable, making it suitable for electrical cable insulation and applications in the electrical and electronics industries. LDPE is easy to process and manufacture, making it a popular choice for various applications, including packaging, agriculture, construction, and electrical components.
LDPE film is naturally transparent, allowing for easy inspection of the contents within the packaging. This transparency, combined with its versatility, makes LDPE film ideal for food and beverage containers, ensuring that the contents remain fresh, visible, and uncontaminated. LDPE is also used in industrial applications, providing protection for machinery and equipment, and in agricultural settings, where its UV resistance, flexibility, and durability are advantageous.
While LDPE film shares some common benefits with HDPE film, such as chemical resistance and recyclability, LDPE is generally more cost-effective and flexible, making it a preferred choice for many applications. However, LDPE's lower strength and durability may limit its use in certain contexts, particularly those requiring high tensile strength and rigidity, where HDPE film is often favoured.
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Frequently asked questions
As of May 2024, the national average price is 15.09 cents per pound.
As of May 2024, the national average price of post-consumer natural HDPE is 32.44 cents per pound. The price of color HDPE is 23.94 cents per pound.
As of February 2021, the national average price is 18.44 cents per pound.
As of April 2021, the price of 'other plastic' in Southern California is $0.31.
