The Recycled Linear Low-Density Polyethylene (R-LLDPE) market in Germany has remained stable in the first two weeks of August 2025, with modest price hikes of 1.5% likely in September and 1.3% in October. Stability follows a balanced supply-demand equilibrium, underpinned by firm domestic production as well as sustained consumption in the packaging and automotive sectors.
Domestic R-LLDPE supply is still running almost smoothly. Routine bale collection is coupled with fast-paced conversion of flakes into granules to ensure steady material flow to downstream consumers. Import costs have also moderated, as freight rates have come off early summer highs, making it more challenging for sellers to justify the passing-through of price hikes. While port-related delays were reported in some instances, steady R-LLDPE import volumes alongside dependable domestic output have helped keep deliveries intact, thus ensuring a stable and predictable market sentiment.
The readiness with which both local producers and importers have sourced R-LLDPE has kept competition intense. Since July, freight cost reductions have decreased the cost of imports, thus limiting sellers' ability to implement price hikes. Buyers find it easier to secure material, supportive for stability in R-LLDPE prices through the first two weeks of August.
The majority of R-LLDPE buyers and traders have remained prudent in terms of inventory handling. Following stockpiling in July, they rely on their existing reserves instead of fresh spot deals. The cautious approach resulted in a quiet trading atmosphere in early August, further cementing the overall R-LLDPE price stability.
Packaging sector continues to be a major user of R-LLDPE. Mixed signals emerged from the flexible plastics segment in July. While a number of companies were able to maintain a regular pace of production, others were forced to reduce output rates as a result of shortage of non-cyanide printing inks. Consumer trends showed a drop in buying interest, slowing down the sales of fast-moving items and short-term packaging orders. These factors led to R-LLDPE pricing up mid-month, where prices averaged a 5.2% increase for the month of July before moderating in August.
The automotive sector has provided some support for R-LLDPE demand as well. July's statistics showed a 9% year-on-year increase for passenger cars built, at 347,100 units, with exports up 7% year-on-year. Battery-electric and plug-in hybrid vehicle registrations surged 66%. The growth helped sustain industrial polymers demand, which contributed to a mid-July price hike before market stabilization in August.
Demand for R-LLDPE applications has remained steady, without any sharp ups and downs. With continuous domestic and imported availability, stable production costs, and sustained usage from the packaging and automotive sectors, the R-LLDPE market seems well-balanced. This should lend support for price stability into the remainder of August, followed by a modest increase in the coming months.
