Polymers
Overview
Global polyethylene (PE) and polypropylene (PP) supply and demand dynamics are in transition. Supply is increasing much faster than demand and international trade is shifting due to political and economic events. About 40% of the US polyethylene production is exported, mainly to Asian markets, whereas only about 10% of the polypropylene production is exported, mainly to LATAM markets.
Ethylene prices in Asia and Europe are tied to naphtha whereas ethylene prices in the US are impacted by natural gas and ethane supply. Asia is also self-sufficient on PP whereas they must import 25% of their PE demand.
The impacts of other ethylene and propylene derivatives such as PVC or propylene oxide also require assessment.
Our polymer experts will help you determine what trends to track and how to stay competitive in today’s ever-changing global markets.
Latest polymers news
Browse the latest market moving news on the global polymers industry.
Italian plastic packaging tax delayed to 2026
Italian plastic packaging tax delayed to 2026
London, 16 May (Argus) — The Italian Senate has voted to postpone the introduction of a plastic packaging tax for another two years until 1 July 2026. Parliament originally approved legislation to impose a tax on single-use plastic packaging in the 2020 financial year. But it has been a contentious and complex political issue that has received push back from the industry, resulting in its introduction being postponed seven times. The proposed tax is expected to follow a similar model to Spain's existing plastic tax, with the tax rate in Italy's legislation fixed at €0.45/kg of virgin plastic. The tax is designed to cover plastic products such as bottles, bags, food containers, bubble wrap, caps and other single-use plastic items. Recycled plastics and compostable plastics will be exempt. By Chloe Kinner Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Daio Paper to explore biorefinery
Japan’s Daio Paper to explore biorefinery
Tokyo, 13 May (Argus) — Japanese paper manufacturer Daio Paper is planning a trial biorefinery, aiming to begin commercial production of sustainable aviation fuel (SAF), second-generation bioethanol and biodegradable plastic feedstock by the April 2032-March 2033 fiscal year. Daio, in partnership with domestic biorefinery venture Green Earth Institute (GEI), plans to develop technology to demonstrate manufacturing the bioproducts by 2030. Daio Paper plans to use wooden biomass, waste paper and paper sludge as feedstock. The company declined to disclose any planned commercial output capacity, as well as location of the biorefinery. The project is financed by Japan's state-owned research institute Nedo. Daio Paper is attempting to achieve decarbonisation, while weakening paper demand has forced the industry to seek new business opportunities. Fellow Japanese paper producer Nippon Paper has also tried to develop biorefinery technology with GEI, targeting to begin commercial production of bioethanol for SAF and petrochemical feedstock by 2027-28. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
RES licences BlueAlp pyrolysis technology
RES licences BlueAlp pyrolysis technology
London, 9 May (Argus) — Italian waste management company Recupero Etico Sostenibile (RES) will license pyrolysis chemical recycling technology from Netherlands-based firm BlueAlp, to build a 20,000 t/yr plant in Pettoranello del Molise, Italy, to process difficult to recycle plastic waste. The firms signed an engineering, procurement and fabrication (EPF) agreement this week, with BlueAlp to supply a technology licence and manufacture the plant equipment at its factory in the Netherlands before shipping to the site in Italy. BlueAlp chief executive Valentijn de Neve told Argus that fabrication is expected to take around one year, with the plant expected to begin operating by mid-2026. RES will own and operate the plant alongside its existing mechanical recycling facilities in Pettoranello del Molise. It recently commissioned a new advanced 40,000 t/yr sorting centre at the same site which will provide feedstock to the pyrolysis plant. Positive step A licence agreement with a waste management company should be seen as an important step for the pyrolysis industry, de Neve said, as it demonstrates that such a company sees chemical recycling as complimentary to its existing waste management activities. UK-based waste management firm Viridor bought chemical recycling firm Quantafuel last year, but de Neve said that the licensing model is more affordable and accessible to a wider group of waste management firms. Involvement from such companies in addition to petrochemical producers — which have been the most frequent early adopters in chemical recycling — can help to accelerate the development of the industry, he said. The European petrochemical sector is facing economic challenges, amid tough market conditions globally, a generally higher cost base in Europe and the need for the industry as a whole to invest in renewing or replacing ageing production units to meet ever stricter environmental targets. Saudi Arabia's Sabic and ExxonMobil have both announced their intention to close European steam cracker capacity in the past month, and LyondellBasell launched a strategic review of its European olefins and derivatives assets on 8 May, raising questions around the sale or closure of some of its facilities. But de Neve played down any risk to investments in chemical recycling, saying that many market participants continue to see circularity as a key component of their competitiveness. Indeed, LyondellBasell said itself that its investments in a commercial-scale plant to convert plastic waste into liquid raw materials, and its development of a circularity hub in Cologne will continue as planned. De Neve also said the recent progress of the Packaging and Packaging Waste Regulation (PPWR) — which will set mandatory recycled content targets for plastic packaging — through the EU parliament, and the parliament's rejection of an objection to the European Commission's support for fuel use-exempt mass balancing rules, are positive developments for chemical recycling. As legislation has developed, companies have been more keen to speed up progress on new pyrolysis projects, he said. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Dutch govt consults on minimum recycled content
Dutch govt consults on minimum recycled content
London, 8 May (Argus) — The Dutch ministry of infrastructure and water management has opened a consultation on setting out a blanket minimum proportion of recycled or bio-based polymers required in plastic products produced in and sold on the Dutch market. The ministry has invited stakeholders to make submissions to the consultation by 31 May. The proposed regulations would require plastic converters to include a certain percentage of recycled or bio-based polymers in plastic products by 2027. The proposal is for a blanket percentage requirement, to be decided based on an assessment of the availability of recyclates in the market. This blanket requirement would be applied to 50pc of the volume of production of each converter, with 50pc exempted to account for plastic products that are produced in the Netherlands and then exported. Administratively, converters would receive government-issued credits, known as Circular Polymer Units, for recycled content that they include. Those that exceed their obligations will then be able to sell credits for a central registry to producers that have missed the target, to take into account that some products are easier to use recyclates in than others. In accompanying documents, the ministry said credits would not be awarded for inclusion of pre-consumer recyclates. The consultation comes after the European Parliament passed the Packaging and Plastic Waste Regulation (PPWR) in April, which includes mandatory recycled content targets for plastic packaging in the EU by 2030, among other measures. By George Barsted and Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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