The Age of Parity
The economics of plastic production are shifting, with recycled plastic becoming cost-competitive with virgin plastic due to rising energy costs, regulatory pressure, and technological advancements. Under realistic conditions, the cost of virgin plastic could rise to $1,840 per ton, while recycled plastic could drop to $1,430 per ton, making recycled material 20-25% cheaper. Regulatory measures such as carbon pricing, extended producer responsibility, and mandatory recycled content requirements are further driving up the costs of virgin plastic.
Key figures
- Virgin plastic cost
- $950-$1,100 per ton
- Recycled plastic cost
- $1,200-$1,400 per ton
- Virgin plastic cost after shocks
- $1,840 per ton
- Recycled plastic cost after shocks
- $1,430 per ton
AI analysis
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AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.