Decree regulating recycled plastic in Brazil to be signed in October: ministry

Brazilian President Luiz Inacio Lula da Silva is set to sign a decree in October to regulate and promote the reverse logistics of plastic waste in the country, the Ministry of the Environment and Climate Change said.

According to the ministry, the decree will define the recycled content index in new packaging, which should reach 40% by 2040, up from 22% in 2026-27.

"Additionally, it establishes collection and disposal targets for packaging, which should reach 50% by 2040, beginning with 32% in 2026," the ministry said in a note sent to Platts, part of S&P Global Energy.

RPET market participants have highlighted recycling targets as one way to increase demand for recycled material. Market sources indicate that the absence of mandatory recycled material usage, coupled with the more competitive prices of virgin resin, means there has been an absence of purchasing interest in recycled materials.

In this scenario, RPET prices in Brazil have fallen amid reports of weak demand. Platts last assessed recycled PET clear flake at Real 6.15/kg DAP Sao Paulo, down from Real 10.60/kg on Dec. 31, 2024.

Prices for virgin resin from Asia have also fallen in 2025. Platts last assessed PET FOB Northeast Asia at $750/mt on Oct. 1, down from $795/mt on Dec.18, the last price assessment in 2024. In Southeast Asia, PET was assessed at $820/mt FOB, down from $865/mt in 2024.

Brazil's virgin PET is typically priced based on Asian prices plus freight. The Platts-assessed container rate for North Asia to East Coast South America fell 61% between 2024 and Oct. 6.

"We are facing very strong pressure from virgin resin," a recycler said on Oct. 6. "If we don't make an effort to lower prices, we will completely lose competitiveness against virgin resin," the same source added.

With the decree, the government said that specific obligations for manufacturers, importers, distributors, and traders will be detailed. According to the ministry, there will be "control mechanisms such as audits, traceability via invoices, and certification by verifying entities."