The rLDPE Price Trend in Q2 2026 has been strongly positive, with recycled low-density polyethylene markets seeing significant price increases in both India and Germany. The biggest movement was recorded in India, where natural recycled LDPE granules on an Ex-Mumbai basis increased by around 36% during the quarter.
Germany also experienced a healthy rise, with translucent recycled LDPE pellets on an FD Hamburg basis increasing by about 16%. Tight recycled feedstock availability, steady demand from packaging and agricultural film converters, and higher costs for virgin LDPE have all played an important role in supporting the market.
Recycled plastics markets can sometimes behave differently from virgin polymer markets. While virgin LDPE prices started showing a sharper correction toward the end of the quarter, recycled LDPE remained comparatively firm.
This was mainly because recyclers continued to face challenges in collecting and securing suitable film scrap. At the same time, buyers continued to need recycled material for applications where recycled content is increasingly important.
The second quarter of 2026 was an important period for the recycled LDPE market. The overall direction was upward, but the reasons behind the movement were slightly different between India and Germany.
In simple terms, the market was affected by two major forces: limited supply of suitable recycled feedstock and steady demand for recycled material.
Film scrap is one of the important raw materials used to produce recycled LDPE. When collection becomes difficult, recyclers have less material available to process. This can quickly put upward pressure on recycled polymer prices.
During Q2 2026, film scrap collection became tighter in both markets. Seasonal collection problems and logistical difficulties affected the availability of material. As a result, recyclers had to compete more actively for available scrap.
At the same time, demand did not weaken significantly. Packaging applications continued to require recycled material, while agricultural film converters also maintained demand. This combination of restricted supply and relatively stable demand created a strong foundation for the rise in rLDPE Prices.
India recorded the strongest movement during Q2 2026. Natural recycled LDPE granules on an Ex-Mumbai basis increased by approximately 36% over the quarter.
This was a major increase compared with normal short-term price movements in recycled polymers. One of the main reasons was the tightening availability of film scrap.
Collection activity can change considerably depending on the season, transportation conditions and local logistics. During the quarter, these factors made it more difficult for recyclers to secure enough suitable film waste. With less feedstock available, recycled material became more expensive to produce.
Another important factor was the movement in virgin LDPE costs. Higher crude oil and ethylene costs, linked in part to disruption associated with the Strait of Hormuz closure, increased the replacement cost of virgin LDPE.
This gave recycled LDPE additional support. When virgin material becomes more expensive, recycled alternatives can become relatively more attractive to converters, especially when recycled content is already part of their production requirements.
The result was a strong upward movement in the Indian rLDPE Price Trend during the quarter.
Germany experienced a more moderate but still significant increase. Translucent recycled LDPE pellets on an FD Hamburg basis increased by around 16% during Q2 2026.
The German market benefited from steady demand related to recycled-content requirements in Europe. Packaging converters continued to look for recycled material, which helped maintain buying interest even when supply conditions were difficult.