Material Market Update - May 15, 2026

From the CEO

Good morning folks,

The supply shock pushed pricing up through April, but markets began to slow down in the first half of May due to soft downstream demand. Supply is still tight on prime grades across the board, but buyers are supplementing with secondary off-grade and reprocessed materials.

After a long period of consolidation through 2022-2025, margins in 2026 have boomed for most market players as seen by the spreads in pricing within plastic grades. For a quick view on pricing, I compiled a list below that is based on conversations amongst buyers, sellers, and traders in the US market.

• 76-86 cpp PET resin east and west coast
• 72-90 cpp PET PCR Resin east/west
• 60-70 cpp PET PCR Flake east coast
• 55-65 cpp PET PCR Flake west coast
• 55-65 cpp PET PIR regrind
• 5-10 cpp PET bales east coast
• 10-20 cpp PET bales west coast
• 30+ cpp PET bales MX
• 70-80 cpp HD/HMWPE resin (railcars)
• 43-53 cpp HD/HMWPE repro
• 33-43 cpp HD/HMWPE regrind
• 75-85 cpp LD/LLDPE resin (railcars)
• 55-65 cpp LD/LLDPE repro (natural)
• 40-50 cpp LD/LLDPE repro (color)
• 25-35 cpp LD/LLDPE scrap (natural)
• 15-25 cpp LD/LLDPE scrap (color)
• 70-80 cpp COPP resin (railcars)
• 60-70 cpp HOPP resin (railcars)
• 55-65 cpp RCP resin (railcars)
• 40-50 cpp PP repro
• 25-35 cpp PP regrind

The market found a short term ceiling with pricing trending down in May and June with buyers stalling purchases. If they all wait and come back to buy at the same time, we may see a new ceiling emerge in July. No one is talking about safety stock for hurricane season at the moment, but it's just another variable in the oscillation of this market on a go forward basis.

If you are a buyer, seller, or trader of plastic that wants to lean into the future with us at Matium, our door is open. Lots of updates coming over the summer as pricing, financing, and AI all converge onto the platform.

We had our first $1M day and our first $2M day on the Matium market in May already, so something is clicking! Have a great start to the summer!

Thank you,
Bailey Robin - Cofounder/CEO

Key Indicators

Sources: FRED, ISM, US Census.

Markets & Trade

1. APR, Industry Groups Testify on Overcapacity

Source: Resource Recycling

• U.S. recycling and plastics industry groups testified before the U.S. Trade Representative (USTR) on the impact of foreign overcapacity—particularly from Asia—arguing that a surge of low-priced PET imports is undermining domestic recyclers, leading to plant closures and shrinking U.S. capacity.
• Data presented highlighted dramatic growth in PET imports from countries like India, Indonesia, and Thailand, with imports rising over 1,000% in some cases while prices fell over 60%, prompting calls for swift USTR intervention to restore market balance.
• While some groups urged strong trade remedies, others like the American Chemistry Council and paper industry representatives cautioned against measures that could restrict access to critical raw materials and machinery, warning such actions could weaken U.S. competitiveness and investment.
• The USTR's ongoing Section 301 investigation could result in tariffs or other trade actions by late July if violations are found, introducing potentially significant changes to the U.S. plastics and recycling market landscape.

2. Harmonized System Changes Could Reshape US Plastics Trade

Source: Plastic Today

• Sweeping amendments to the Harmonized System (HS) will redefine global plastics trade classifications by 2028, impacting $24.3 billion in US plastics exports and imports and introducing new product categories—most notably for single-use, recyclable, and polymer types.
• Key HS categories for plastics, including polyesters, natural polymers, waste and scrap, packaging, and household goods, will undergo substantial restructuring with new codes, definitions, and expanded classifications, such as strict criteria for what constitutes 'single-use' and hazardous wastes.
• US regulators are seeking industry feedback on proposed changes, with a public comment deadline of May 18, 2026, as these updates will shape tariff schedules, customs procedures, and supply chain practices for manufacturers, importers, and exporters.
• Industry stakeholders should assess the potential operational and compliance impacts of these changes and actively engage in the review process to ensure updated classifications support practical trade and do not create unintended barriers or costs.

3. From Hormuz to Resin: How the Iran Conflict Is Resetting Polymer Pricing

Source: Plastic Today

• Escalating Middle East conflicts, particularly around the Strait of Hormuz, have disrupted petrochemical flows and shifted global polymer pricing from traditional supply-demand fundamentals to dynamics now dominated by geopolitical risk.
• From February to May 2026, plastics prices reached multi-year highs worldwide, with naphtha feedstock margins surging and pronounced regional impacts—contract settlements drove sharp price increases in Europe, while transaction-based spot pricing spiked in India and Asia.
• Upstream supply disruptions, including at major sites like Saudi Arabia's Jubail complex, resulted in rising freight costs, insurance premiums, and shipment delays, amplifying tight supply and inflating feedstock as well as polymer prices throughout the value chain.
• These cost shocks have rapidly transmitted into downstream sectors such as packaging, automotive, and consumer goods, with raw material price increases of up to 40% in some regions, signaling a fundamental and lasting shift in how plastics markets price risk and manage supply.

Business & Corporate Strategy

1. Amcor Reports Strong Q3 Results

Source: Plastic Today

• Amcor reported strong Q3 results, with adjusted EPS up 6% year-over-year, and raised its full-year earnings projection, largely driven by synergies from its merger with Berry that significantly exceeded initial targets ($270 million expected in fiscal 2026).
• The company advanced portfolio optimization with six noncore divestitures valued at $500 million, sharpening focus on its $20 billion core business, while disciplined cost management and strategic pricing addressed ongoing inflation and supply challenges.
• Amcor maintained operational resilience amid global disruptions, including Middle East conflict and US winter storms, by leveraging its diversified supplier base and proactive inventory management to ensure supply continuity and minimize earnings impact.
• Financial discipline remained a priority as Amcor managed higher capital spending and working capital, reaffirming its deleveraging commitments while forecasting fiscal 2026 free cash flow of $1.5–$1.6 billion despite headwinds.

2. Republic Q1 Margins Hold as Polymer Volumes Offset Commodity Drop

Source: Resource Recycling

• Republic Services maintained strong Q1 2026 profit margins and reported $525 million in net income, as increased polymer center volumes offset the impact of a sharp $35-per-ton drop in recycled commodity prices.
• Despite lower recycled prices, domestic demand for post-consumer plastics remains robust, though market pressure is rising from Asian imports of virgin PET—some mislabeled as recycled—which is undercutting U.S. recyclers.
• Republic accelerated investments, acquiring over $700 million worth of recycling and waste assets year-to-date and expanding processing capacity, including an upgraded recycling center in Massachusetts equipped with advanced AI sorting technology.
• The company continued to invest in sustainability initiatives such as fleet electrification and landfill gas-to-energy projects, which are expected to significantly boost revenue and support long-term industry trends toward cleaner operations.

3. PureCycle Achieves Production Growth, Expands Branded Customer Base

Source: Plastic Today

• PureCycle Technologies increased Q1 2026 recycled polypropylene production by 12% versus the previous quarter, reaching 8.4 million pounds, and began commercial shipments to Procter & Gamble while converting eight new branded customers.
• Operational improvements at the Ironton facility — including a turnaround completed ahead of schedule and under budget — have boosted reliability and validated the technology's long-term resilience, with 170+ projects targeting capacity and quality gains.
• Commissioning of PureCycle's new compounding facility enhances its ability to supply application-ready products and improve margins, while macro trends such as global supply chain disruptions and tightening regulations are accelerating demand for FDA-grade recycled resin.
• Despite reporting a net loss for Q1, PureCycle strengthened its commercial pipeline, with branded applications ramping and expansion projects in Thailand, Belgium, and Augusta progressing, supported by disciplined cost management and a liquidity position of $131 million.

4. Origin Materials Nearing Its End

Source: Recycling Today

• Origin Materials has announced plans to sell its PET cap technology and other remaining assets and proceed with an orderly wind-down of operations, contingent on shareholder approval.
• As part of the cost-cutting measures, the company is reducing its workforce by 59%, including executive departures and the appointment of CFO Matt Plavan as interim CEO.
• Attempts to secure additional financing or strategic alternatives were unsuccessful, leading the board to conclude that liquidation is the best option to maximize shareholder value.
• The company will delist from the Nasdaq, resolve outstanding liabilities, and convert assets into cash, signaling the end of its efforts to commercialize recyclable PET closures in the plastics packaging market.

5. UK Injection Molder to Open Texas Plant

Source: Resource Recycling

• UK-based RGE Group will open its first US injection molding facility near San Antonio, Texas, in September 2026, aiming to serve the North American market.
• The move was accelerated by US tariffs, with both RGE and many of its customers expanding manufacturing presence in the US to support demand and minimize trade impacts.
• The new 27,000-square-foot plant will create around 50 skilled manufacturing jobs and feature advanced molding technology capable of producing large, technical products.
• RGE's operations will leverage recycled plastics, integrating post-industrial and post-consumer materials into engineered compounds validated to EU quality standards for high-performance applications.

Governance & Oversight

1. California's EPR Law Could Soon Face Lawsuit

Source: Recycling Today

• California's Office of Administrative Law approved permanent regulations for SB 54, instituting an extended producer responsibility (EPR) program aimed at reducing plastic packaging and increasing recycling in the state.
• Environmental groups NRDC and Californians Against Waste plan to sue, arguing that the finalized rules create significant loopholes that could exempt many plastic packaging types from reduction and recycling requirements, undermining the law's core objectives.
• Concerns center on the regulations allowing certain chemical recycling technologies to be counted as recycling—even if they generate hazardous waste—and enabling industry to sidestep requirements by claiming federal preemption.
• The dispute signals impending legal and regulatory uncertainty for stakeholders in California's plastics and packaging supply chain, as future court decisions could reshape compliance obligations and operational strategy.

2. How Reuse Fits into EPR

Source: Resource Recycling

• Experts emphasized that reuse must be an integral component of Extended Producer Responsibility (EPR) systems for packaging, citing current variations and emerging legislation in multiple US states and internationally.
• Practical incentives, such as one-time EPR fees for reusable packaging and grants to support reuse infrastructure, are spurring industry adoption, though policies and implementation details differ by jurisdiction.
• France and the EU set ambitious reuse targets for packaging, driving investment in standardization, experimental projects, and the development of new symbols and collection systems to scale reuse models cost-effectively.
• Despite upfront costs and business model challenges, the reuse sector is expanding rapidly, with increasing policy support, new reuse companies entering the market, and a shift toward standardized, returnable packaging formats.

Innovation & Product Development

1. Living Plastics Self-Destruct on Command Using Engineered Bacteria

Source: Plastic Today

• Researchers have developed a 'living plastic' that embeds engineered Bacillus subtilis bacteria capable of breaking down polycaprolactone within six days, eliminating the creation of microplastics.
• The innovative material employs a dual-enzyme system, which enables efficient and complete degradation by combining two bacterial strains—one randomly chops polymer chains while the other reduces fragments to building blocks.
• Manufacturers can now design plastic products with built-in, programmable degradation, enabling potential end-of-life self-destruction for single-use applications such as packaging and consumer goods.
• This approach could be adapted to other common plastic types, holding promise for reducing persistent plastic waste and transforming how the industry addresses environmental concerns around short-lived plastic products.

2. Tomra Unveils AI-Native Platform for Recycling Operations

Source: Plastic Today

• Tomra Recycling has taken a majority stake in PolyPerception, integrating its AI-native platform to shift recycling operations from traditional sensor-based sorting to intelligent, connected systems capable of real-time data interpretation and action.
• The new AI platform enables natural language interaction with plant data, allowing operators to query performance, generate custom quality reports, and set operational alerts, making complex analytics accessible and actionable on the plant floor.
• Tomra launched new deep learning applications for its GAINnext ecosystem in North America, notably solving PET tray sorting and copper-steel separation challenges with high purity rates, addressing critical feedstock needs in plastics recycling.
• This move marks a technological turning point for the recycling sector, establishing AI as the central intelligence in facilities and directly linking advanced material insights to operational decisions, fundamentally transforming industry efficiency and capabilities.

3. Nouryon Launches Peroxide Technology for Recycled Polypropylene

Source: Plastic Today

• Nouryon has launched Perkadox PM-60ST-GR, the first commercially available organic peroxide designed to restore performance in recycled polypropylene, allowing it to replace virgin materials in high-performance packaging, automotive, and consumer goods applications.
• This technology addresses a critical barrier for recyclers by rebuilding the polymer's molecular structure during extrusion, significantly enhancing melt viscosity and resistance to deformation in recycled polypropylene.
• By enabling higher recycled content without quality trade-offs, Perkadox PM-60ST-GR has the potential to transform material sourcing strategies and support manufacturers' sustainability goals across multiple industries.
• The introduction, showcased at Plastics Recycling Show Europe 2026, reflects rising industry focus on practical solutions that expand the adoption of recycled plastics in demanding end-uses.

4. Sabic Launches Toughening Agent for Aerospace Composites

Source: Plastic Today

• Sabic has launched Ultem SU3102P, a novel polyetherimide oligomer toughening agent for thermoset composites that enables up to 50% loading, significantly surpassing the industry standard and offering breakthrough gains in aerospace manufacturing.
• The new material allows composite structures to achieve a 140% improvement in toughness-stiffness balance and up to 30% greater processing efficiency, enabling lighter, tougher, and more resilient aerospace components while supporting increased manufacturing throughput.
• Unlike existing solutions, Ultem SU3102P maintains low viscosity at high loadings, is drop-in compatible with a wide range of thermoset resin systems, and does not require major process equipment upgrades, streamlining adoption for manufacturers.
• These advancements help aerospace producers address the global surge in air traffic, supporting goals for increased capacity, reduced emissions, and higher operational safety through durable, high-performance plastics innovations.

Sustainability & Resource Management

1. Cleanfarms Reports 'Record Year' for Agricultural Plastics Recovery

Source: Recycling Today

• Cleanfarms achieved record-breaking agricultural plastics recycling in 2025, collecting 5.5 million pounds of pesticide and fertilizer containers (a 13% year-on-year increase) and managing 2.4 million pounds of tote bags.
• The organization set new regional collection records across Canada, particularly in Manitoba, Alberta, and Quebec, driven by both provincial programs and industry voluntary initiatives, and launched container recycling in Newfoundland.
• Innovations highlighted in the report include development of refillable container bases using recycled agricultural plastic, signaling progress toward more advanced, high-performance agricultural packaging solutions.

2. Light House Study Shows Progress in Recovering Construction Plastics

Source: Recycling Today

• Light House's 14-month Construction Plastics Initiative (CPI) pilot in Vancouver tracked and recovered plastics from active construction sites, revealing a consistent and recoverable stream of material that is often lost without proper systems.
• The pilot demonstrated that 77% of sorted construction plastics were recyclable, especially clean, packaging-type materials, though 23% remained unprocessed due to contamination and system limitations, highlighting the need for improved recovery infrastructure.
• Recovered plastics were successfully reintegrated into new building components, with materials processed into recycled pellets and supplied for manufacturing, underscoring the feasibility of circular systems in the construction sector.
• The study points to a significant industry opportunity: construction waste accounts for over 30% of all plastic waste in Canada, yet virtually none is currently recycled, and large-scale recovery will require coordinated industry and government action to implement effective pathways.

3. Apple Leads on Inputs, Faces Questions on ITAD

Source: Resource Recycling

• Apple reports that 30% of the material in all products shipped in 2025 was recycled, marking a new high for the company and setting a benchmark influencing other electronics brands' circular manufacturing goals.
• The company has eliminated plastics from packaging, using fiber-based solutions and avoiding over 15,000 metric tons of plastic in five years, outpacing peers on sustainable packaging transitions.
• Despite significant advances in recycled-content inputs and packaging, Apple's tight control over device take-back and recycling streams, including contractually enforced shredding and limited transparency on recycled material sourcing, raises concerns among recyclers and ITAD firms about true circularity and the potential for higher-value component reuse.