The shortage of virgin plastic material is driving the demand for recycled plastic. As a result, the demand for used recycling machinery has risen exponentially, as it allows recyclers to quickly increase their output. The immediate availability of used machines, with no lead times, is their great attraction.
Over the last few months, we have seen an increase in the number of requests we receive to purchase used recycling machinery. This increase has mainly affected post-consumer recycling machinery, with post-industrial recycling remaining more stable.
This upturn in demand for used machinery is a consequence of the massive price increases experienced in both virgin and recycled raw materials. The outlook for the coming months is for a continued shortage of material on the market coupled with strong demand from all sectors, which will continue to put pressure on prices and drive the recycling sector. And while demand is expected to remain high, high prices are already beginning to take their toll on the industry and dampening growth expectations. Many are talking about this shift from virgin to recycled material has come to stay.
Most transformers and recyclers do not foresee a real easing of tension until 2022. And, in view of material lead times, which have often risen to more than six months, this is likely to be the case.
As always, in situations where you need to be able to react quickly to a market situation, used machinery is an optimal solution that enables you to adapt and increase production immediately.
The demand is currently particularly high for recycling machines with capacities over 1 ton/hour, where the supply is also very scarce. When these machines come on the market, they are sold in less than 24 hours. The supply of recycling machinery is higher in machines of 500 Kg/hour because many companies are replacing these machines with higher capacity ones. The most demanded brand is EREMA, followed by NGR, Starlinger and Gamma Meccanica. MachinePoint sells used recycling machinery of all these brands, to see the current offer click here.
Regardless of the current material shortage in the market, we foresee that the demand for both new and used recycling machinery will remain strong over the next few years. This trend is driven by the different European and national regulations, which will force plastic packaging to have a percentage of recycled material. As an example, we have the high demand for RPET machinery and its scarce supply, which coincides with the current high demand for this material that exceeds its supply in many European countries. The new European regulation establishes that by 2025 it is mandatory that all PET bottles must contain a minimum of 25% recycled material.