Recycling industry News
Our top news picks from last month:
- Plastics Recycling Update: Scrap plastic from Canada, Mexico subject to tariffs; Analysts detail uncertainty for recycled plastics
- Nixon Peabody: California resets EPR rulemaking
- Batteries News: Panasonic Energy and Sumitomo Metal Mining to Collaborate in Battery Recycling, Advancing Closed-Loop Circular Economy Initiatives
Scrap plastic from Canada, Mexico subject to tariffs
On March 4, the U.S. imposed >25% tariffs on nearly all imports from China, Mexico and Canada, including scrap plastic and metal. The sweeping tariffs are separate from the 25% global tariff on steel and aluminum announced on March 12. Stock markets reacted negatively and recycling trade associations expressed alarm at the potential disruption to the industry and the broader economy. We all expect more volatility in the coming weeks and months, delaying manufacturing investment decisions. Chemical market experts at a recent conference see the plastics recycling market as rife with uncertainty driven by tariffs and price premiums. As such, many brands and manufacturers adjust their ambitions.
✅ Our take:
Following the April 2 tariff announcement, major trading partners are responding with retaliatory measures. The lack of clarity is delaying corporate investments in recycling and manufacturing. While we can’t predict how tariffs will play out, we can help buyers and suppliers understand trends, prices and suppliers in every sustainable materials market so they can develop reactive strategies.
California resets EPR rulemaking
Unable to finalize SB 54 implementation regulations by the March 8 deadline, CalRecycled — California’s waste management agency — was directed to restart the Extended Producer Responsibility (EPR) rulemaking process. Governor Newsom urged the agency to find ways to reduce costs to Californian businesses and families after analysis indicated that under proposed regulations, it would cost the state $36 billion to implement EPR and add $300 in expenses annually for Californians. While a deadline has not been set for the new rulemaking process, no changes have been made to SB 54 statutory deadlines or 2032 targets.
✅ Our take:
Under the current economic climate, and given that other states will look to California as an example to replicate, the added effort taken to revise the regulations, cut out costs and simplify requirements for businesses will be of great benefit.
By no means is EPR losing strength as rulemakers power toward statutory deadlines (e.g., producers must register with a producer responsibility organization (PRO) by April 2025 and report on 2025 first-half packaging data by August 2025). Meanwhile, Alberta’s EPR program for packaging and paper officially started on April 1, and eight other Canadian provinces have already established or are in the process of implementing EPR programs. In the U.S., three states introduced packaging EPR bills in 2025, and a dozen others had already introduced or enacted legislation by 2024.
Panasonic Energy and Sumitomo Metal Mining to Collaborate in Recycling of Nickel for Lithium-Ion Batteries, Advancing Closed-Loop Circular Economy Initiatives
Panasonic and Sumitomo are collaborating on a closed-loop (battery-to-battery) initiative to recycle automotive batteries, recycling nickel and copper and repurposing them as raw materials for cathode production. The initiative is expected to help Panasonic reach its 2030 target of achieving 20% recycled cathode material content in its batteries.
✅ Our take:
With growing demand for electric vehicles, battery materials face supply-demand gaps, and supply for lithium is expected to be 55% below demand in 2030. This and other collaborations, as well as company initiatives like the one announced this month by Porsche, represent a key opportunity to tackle the gaps.
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Circular News
What has Circular.co been up to?
New from Circular.co: PCR Pricing Analysis
We’re excited to announce that we’re expanding our data offerings. Starting this month, we’re adding a global post-consumer recycled (PCR) market analysis to our monthly newsletter and launching a new market pricing feature on our platform. Watch this space for more news on that soon. For now, here’s a sneak peek at major Q1 U.S. PCR Plastic Resin markets.
Significant price opportunities are out there if you know where and how to look. Large spreads exist among PCR indexes and project-specific quotes across all material types. As such, data-powered buyers can find PCR at or near virgin prices in all markets — outside of natural rHDPE, of course, which is trading close to historical highs thanks to supply constraints.
Headlines from major U.S. PCR Plastic Resin markets below show clear volatility and variability:
- rHDPE MC: PCR 10% below Virgin. Historical lows in Southeast, and Black.
- rHDPE Natural: Approaching historical highs with Bales >$1. Deals exist if you search across multiple suppliers.
- rPP MC: Stable and close to parity with Virgin. Deals exist if you search across multiple suppliers.
- rPET Clear FDA: PCR prices trending up with demand.
Contact support@circular.co for more information.
Circular Conference Recap
Circular left a mark at the Plastics Recycling Conference, which took place from March 24-26, and joined in discussions at Plastics Recycling Show Europe from April 1-2. Check out the media coverage on our presence at PRC, followed by Circular COO Shannon Gordon’s own takeaways.
- Resource Recycling: Plastics and textile recovery experts convene
- Plastics News: Plastics recycling faces multiheaded challenge
- Packaging World: Rethinking PCR Procurement for a Circular Future
✅ Our take:
Suppliers appear divided on growth drivers for the industry. One group believes that a premium over virgin is a given and that external factors (i.e., legislation, consumer demand, and brands’ willingness to pay) are needed to drive growth. A second group sees external factors as tailwinds and is focused on driving out cost, collaborating and increasing transparency to drive growth. Both mindsets have been at play in the supplier community for some time and were represented at the conference, but the balance is tilting to the latter group.
About Circular
Circular.co is an AI sourcing platform for sustainable and next-gen materials. Circular’s AI-powered platform runs on the world’s largest recycled materials model, allowing buyers to instantly access new suppliers, analyze pricing, get custom quotes, transact, and manage quality, saving time and cost. Global brands use Circular.co to make data-driven decisions and efficiently find the right material from the right suppliers at the right price. Book a demo here or visit circular.co.