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US rPET demand under sustained pressure: PRC

US rPET demand under sustained pressure: PRC

Houston, 27 February (Argus) — Weak demand for US rPET dominated discussions at the Plastics Recycling Conference this week as buyers pull back, brands extend sustainability timelines, and low-priced imports and virgin PET intensify competition. Market deterioration continues as major recycler Evergreen Recycling, which filed for bankruptcy early last year, shut its plants in Clyde, Ohio, and Albany, New York, this week after its revolving credit lender moved to seize assets, forcing an immediate halt to operations, according to a 24 February Workers Adjustment and Retraining Notification (WARN) notice filed with the Ohio Department of Job and Family Services. Evergeen was one of the largest US rPET suppliers, and the plant closures reduce available recycling capacity. PET recyclers are facing mounting strain as rPET imports continue to displace US material, making it harder for recyclers to compete. "With the five closures, we've estimated about a 16pc capacity reduction, and it's exacerbating the problem," Laura Stewart, executive director of National Association for PET Container Resources (NAPCOR), told Argus in an interview at the conference, held in San Diego, California . "If domestic PET recyclers can't process bales and find strong end markets, it's going to be a challenge to keep the system going." Participants also noted that PET bottle recycling rates remain near 30pc nationwide and vary widely between states. California reclaimers described similar weak conditions, with persistently low prices failing to cover rising labor and processing costs. Several reclaimers said state-level subsidies are needed to maintain operations until demand improves, given the tightening margins across the market. "At the end of the day, you can't run a business on vibes. You've got to make payroll," said Paul Bahou, president of California-based Global Plastics Recyling. Bahou argued that subsidies are needed to ensure that the bottles that are collected can actually be recycled. "Collections is not recycling," Bahou said. "You need to take it [recycleable material] all the way." Bale pricing in California was described as stable but vulnerable to external shifts. Weakened purchasing activity from Mexico, traditionally a major buyer of US PET bales, has removed a key outlet for west coast supply, contributing to the soft demand environment. Conference discussions also highlighted structural limitations in the US system, including uneven access to recycling, competition with low priced virgin PET and limited domestic wash line capacity. The sudden loss of Evergreen's two plants intensified concerns that without stronger, more consistent end-market demand, US recyclers will continue to face financial pressure even as recycled content mandates expand. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.