Market update as of 28 March 2025
General trends across the region are declining, attributed to the downward pressure of prime virgin materials, especially for commodity-grade resins like ABS, PE, PP, PET, and PVC — with exceptions where recycled pellets and PET flakes are selling as PCR recycled content for sustainability programs.
HIPS recycled pellets and ABS recycled pellets are stable as demand for electrical appliance applications is increasing and promising, due to brands’ commitment to using recycled materials for public image and corporate environmental responsibility.Recycled ABS pellets and recycled HIPS pellets are mostly used in household appliance industry and electronic products industry.
Malaysian recyclers are facing challenges related to operational costs due to demurrage and delays resulting from recent increased port customs inspections. This also affects the supply chain and cash flow for import-dependent facilities. Recycled PP and ABS pellets, both injection grade and recycled pellets in Malaysia, are in good demand for the automotive industry, pallets, household goods, and compounding for domestic and export markets. Other recycled materials such as PC, Nylon, and POM are flat to weak, impacted by low prime prices and weak markets.
Scrap plastics markets are not improving, as Thailand and Vietnam recyclers with import licenses have not had their permits renewed. Most scrap plastics are now diverting to Malaysia, where there is strict control on e-scrap and plastic scrap imports. Recyclers in Malaysia are navigating a complex landscape marked by regulatory challenges, market fluctuations, and supply chain issues, necessitating adaptive strategies to sustain their operations.
