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.
rPET closures worsen circularity challenge: NAPCOR
rPET closures worsen circularity challenge: NAPCOR
London, 6 March (Argus) — Argus spoke to Laura Stewart, executive director of the National Association of PET Container Resources (NAPCOR), at the Plastics Recycling Conference in San Diego on 24 February, about the threat that recent recycling closures pose to US PET circularity and what can be done to help. How are recent recycling plant closures affecting PET collection and supply for NAPCOR 's members? Right now, with five recycling plant closures, we're estimating a 16pc reduction in domestic PET recycling capacity. That reduction comes even after two new facilities came on line in 2025, so on a net basis we are down. This is absolutely worsening the challenges we are facing. When domestic PET recyclers can't process bales or access strong end markets, it becomes increasingly difficult to maintain a functioning system. We're also seeing imported volumes of rPET continue to rise by some estimates up to 50pc higher than in recent years and that imported material is displacing domestic supply. If closures continue, we risk losing the foundation necessary for a robust circular economy in the US. We're producing and using PET bottles here, but if those bottles are collected and there's no recycler left to process them, that becomes a serious systemic concern. On a national level, PET bottle recovery has hovered around 30pc for decades. We do see differences between kerbside programmes and deposit return systems, but not enough to significantly shift the national picture. Various state-level studies show wide disparities across the US, from states such as Alabama with low recovery to those like Oregon with much higher rates, that inconsistently continue to challenge the system's overall efficiency. Should PET bottlers do more to support recyclers, and what barriers could prevent that? I believe minimum post-consumer content legislation is one of the clearest ways to support domestic recycling infrastructure. In Europe, for example, their updated EPR [extended producer responsibility] structures only allow post-consumer content to count towards compliance if it's collected within the region and policies like that help ensure domestic supply is protected. NAPCOR recently released a position supporting limits on imported rPET because we strongly believe a stable US recycling industry is essential. For years, we had strong tailwinds pushing the industry forward — the Ellen MacArthur commitments, aggressive corporate sustainability goals and the UN plastics discussions all encouraged capacity expansion. But today, many major brands are extending their timelines. Unilever was one of the first to announce delays, and we've heard the same from Coke and Pepsi. Those shifts have become headwinds for recyclers, equipment makers and producers. Add the tariffs on top of that and it then creates a really difficult environment. I wish it was one simple issue that we could fix, but it's a broader, structural challenge. How significant are the legal challenges to EPR in your view, and do you anticipate they could hinder its implementation in the US? From what I am seeing, companies are participating in the EPR programmes, they're paying into them and engaging in the process. States such as California and Oregon already have strong PET bottle recovery due to the deposit systems, so the real test will be in categories like thermoforms. Challenges from groups such as the National Association of Wholesalers-Distributors highlight the need for clarity on implementation. Colorado's new EPR programme will be an important case study. The state doesn't have strong kerbside recycling today, so if the EPR programme works as intended, we should see improvements driven by investment, infrastructure and education. But consumer participation still matters, behaviour change is hard. What encourages me is the cultural shift we've seen in places such as Canada, where stewardship is ingrained from a young age. We don't have that universally in the US. Changing perceptions from "plastics are bad" to "PET is recyclable, recycled daily, and valuable" is part of building a system that keeps PET out of landfills and the environment. With Europe tightening rPET import rules, could redirected material create opportunities for US buyers or new challenges for recyclers? The legislation was only recently enacted, so it's difficult to predict the full impact. There's still a lot of uncertainty, especially with tariffs and how they might influence global flow of rPET. We are seeing increased interest from south Asia to export more rPET into the US market. But if imports into the US continue to grow and the imported rPET is used in bottles made here, it weakens the circularity flow of material the domestic recycling system depends on. We're not collecting what we produce domestically, and if more of our supply comes from outside the US, we risk having even less material being collected and processed locally. That's a concern for long-term system health. What impacts are you expecting from the US Supreme Court's recent decision on tariffs? Right now, I would say ‘stay tuned'. The situation is changing daily, and since I've been travelling for the conference, I haven't been able to follow every update. There is a lot of unpredictability, and everyone across the supply chain is waiting for clarity. By the time this story is published, we may already have a better sense of what it means. PET producer Eastman, which operates depolymerisation capacity for PET waste, reports strong demand for advanced recycling PET. Do you see a growing need for repolymerised PET alongside mechanical recycling? From NAPCOR's perspective, Eastman has consistently positioned advanced recycling or depolymerisation as a complement to mechanical recycling, not a replacement. They are far ahead in scale compared with others, and it's encouraging to see innovation that expands the types of PET that can be recovered. What remains to be fully understood are the economics. Mechanical recycling has decades of proven performance and cost structure. Advanced recycling is still developing. I'd encourage deeper discussion with Eastman on how they see long-term economics and market integration evolving. What I do know is that this is a tough industry, and it has been for decades. To move forward, we need the entire supply chain recyclers, brands, producers and associations working together. This industry supports communities and jobs, and we all have a stake in keeping it strong. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US rPET demand under sustained pressure: PRC
US rPET demand under sustained pressure: PRC
Houston, 27 February (Argus) — Weak demand for US rPET dominated discussions at the Plastics Recycling Conference this week as buyers pull back, brands extend sustainability timelines, and low-priced imports and virgin PET intensify competition. Market deterioration continues as major recycler Evergreen Recycling, which filed for bankruptcy early last year, shut its plants in Clyde, Ohio, and Albany, New York, this week after its revolving credit lender moved to seize assets, forcing an immediate halt to operations, according to a 24 February Workers Adjustment and Retraining Notification (WARN) notice filed with the Ohio Department of Job and Family Services. Evergeen was one of the largest US rPET suppliers, and the plant closures reduce available recycling capacity. PET recyclers are facing mounting strain as rPET imports continue to displace US material, making it harder for recyclers to compete. "With the five closures, we've estimated about a 16pc capacity reduction, and it's exacerbating the problem," Laura Stewart, executive director of National Association for PET Container Resources (NAPCOR), told Argus in an interview at the conference, held in San Diego, California . "If domestic PET recyclers can't process bales and find strong end markets, it's going to be a challenge to keep the system going." Participants also noted that PET bottle recycling rates remain near 30pc nationwide and vary widely between states. California reclaimers described similar weak conditions, with persistently low prices failing to cover rising labor and processing costs. Several reclaimers said state-level subsidies are needed to maintain operations until demand improves, given the tightening margins across the market. "At the end of the day, you can't run a business on vibes. You've got to make payroll," said Paul Bahou, president of California-based Global Plastics Recyling. Bahou argued that subsidies are needed to ensure that the bottles that are collected can actually be recycled. "Collections is not recycling," Bahou said. "You need to take it [recycleable material] all the way." Bale pricing in California was described as stable but vulnerable to external shifts. Weakened purchasing activity from Mexico, traditionally a major buyer of US PET bales, has removed a key outlet for west coast supply, contributing to the soft demand environment. Conference discussions also highlighted structural limitations in the US system, including uneven access to recycling, competition with low priced virgin PET and limited domestic wash line capacity. The sudden loss of Evergreen's two plants intensified concerns that without stronger, more consistent end-market demand, US recyclers will continue to face financial pressure even as recycled content mandates expand. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
European rPET faces structural challenges: Petcore
European rPET faces structural challenges: Petcore
Recycling capacity continues to expand worldwide, despite structural challenges in the European market, writes Chloe Kinner London, 20 February (Argus) — The European virgin PET (vPET) and rPET value chain is facing deep structural challenges, delegates at the Petcore annual conference in Rome heard on 5-6 February. The European commission recognises European plastics producers and recyclers face ongoing pressures from high energy costs and insufficient checks on imported products claiming compliance. But European recyclers are concerned that protective measures will come too late. In vPET, European producers and recyclers are affected by a global overcapacity crisis, driven by Asian overcapacity, and this is resulting in heightened trade defence activity and tightening European regulation. Trade was high on the agenda at the conference. Delegates discussed the limited impact anti-dumping investigations are having on safeguarding the market and noted that the EU-India free trade agreement may encourage more competition. Protective action is historically high, with chemicals representing a quarter of all active measures, EU trade defence officials said. Despite the challenges the European recycling market are facing, recycling capacity continues to expand worldwide, with around 1,600 mechanical recycling plants in operation. Government incentives, pressure from non-governmental organisations and strong investment flows, particularly in Asia, are propelling this growth. But from a European perspective, growth in global recycling capacity is causing aggressive price competition and rising outputs for recycled material from southeast Asia, Turkey and north Africa in particular, putting addition pressure on European rPET prices. Weak demand and well-stocked inventories are also putting downward pressure on European rPET prices, recyclers said. The industry is waiting on a forthcoming dedicated customs code for rPET, expecting that more accurate reporting of trade volumes will bring clarity to market dynamics and support future protective measures for the European recycling industry. There is also hope that separate HS codes for rPET could help to prevent unregulated material from entering the European market. The European Commission acknowledged that Europe lacks sufficient laboratory capacity for advanced chemical analysis on recycled material at scale. But highlighted that a simple but robust protocol to distinguish rPET from vPET is in development. Regulatory pressure and advancements were also in focus at the event. The industry will have to navigate a large quantity of EU legislation expected to arrive in 2026–30. Circular economies and competitiveness go hand in hand and maintaining a functioning single market is critical as national initiatives expand, the commission said. Petcore members were urged to strengthen cross-value chain dialogue to support consistent implementation of the Single Use Plastics Directive (SUPD), the Packaging and Packaging Waste Regulation (PPWR) and emerging traceability rules, but participants are concerned that a patchwork of differing legislation will develop in the coming years, making the market more complex and ultimately less competitive on a global level. The EU drafted the PPWR "in a rush", leaving many operational details unclear, conference participants said. The PPWR targets may be unachievable at scale with current technologies, particularly for plastics and products that currently have low collection and recycling rates, a few speakers said. Trays are especially difficult to make circular because of sorting and recycling costs. Many delegates feel that extended producer responsibility fees and eco-modulation are essential tools for keeping recycling economically viable, particularly for these emerging areas. An update to the SUPD implementing decision was voted on and passed during the conference . The decision clarifies mass balance rules and the inclusion of chemical recycling, and establishes rules for fuel-exempt mass balance. Recycled PET produced outside the EU market cannot count towards the 25pc recycled content for PET beverage bottles until after 21 November 2027, when imports from OECD countries will be allowed. Imports from non-OECD countries will be allowed to count if an agreement is reached with the EU and the country can prove environmentally sound management of plastic waste. The exclusion of imports towards recycled content targets may give European recyclers some "breathing space", at least in the short term. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Borouge, partners to develop Indonesian waste ecosystem
Borouge, partners to develop Indonesian waste ecosystem
Singapore, 11 February (Argus) — Abu Dhabi-listed polyolefins producer Borouge and Austrian firm Borealis have partnered with Indonesian plastic recyclers Pelita Mekar Semesta (PMS) and Reciki Solusi Indonesia to develop Indonesia's first fully integrated circular waste management ecosystem in East Java. They will launch a feasibility study to assess plans for a greenfield facility that converts post-consumer plastic waste into high-quality recycled polyolefins, strengthening domestic availability of recycled polymers, Borouge said on 10 February. The project aims to provide consistent feedstock supply for mechanically recycled polyolefins by using plastic waste. Meanwhile, the Indonesian recyclers will support the project through plastic waste collection and sorting, which are key steps in producing consistent recycled polymer grades suitable for downstream markets. The initiative supports Borouge's aim to raise recycled content across regional markets, the company said. The move is part of Borealis' efforts to raise its circular polyolefin capacity and reducing plastic waste, the Austrian firm added. The feasibility study marks the beginning of a longer term effort to build a more sustainable plastics value chain in Indonesia, Borouge said. By Sihan Long Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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