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.
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.
EU passes SUPD implementation update
EU passes SUPD implementation update
London, 6 February (Argus) — EU member states voted today in favour of an update to the implementing decision under the Single Use Plastics Directive, including rules for attributing chemically recycled content, Louhane Jacob, a project manager at the French economy and finance ministry, said at the Petcore Europe conference. Member states voted by majority in favour of the rules. The draft decision clarifies mass balance rules and the inclusion of chemical recycling, and establishes rules for fuel-exempt mass balance, with no reports yet of significant changes compared with the leaked draft that circulated in early January . The final text has not yet been published. Minor changes are expected to affect how imported recyclates can count towards recycled content targets. The rules in the leaked draft stated that recycled PET (rPET) 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. Sources indicate that the text voted on today clarifies that all steps of the recycling chain are to take place within the EU until this date. The European Commission will adopt implementing measures without significant delay, and the implementing act will enter into force 20 days after its publication in the EU's Official Journal. The response from market participants was mixed. Some support the exclusion of imports from counting towards recycled content targets, hoping this will stabilise and secure the European PET recycling market over the next couple of years, protecting the market from cheaper import volumes from countries with lower collection and fixed costs. Others want a level playing field for EU and non-EU recyclers, with fair competition and access to affordable, high-quality and compliant recycled materials to achieve sustainability targets. The decision's impact may be limited because reporting requirements are on EU member states and not companies, some participants said. "We are happy, because it is a step needed to maintain circularity in Europe. If this was not approved there would be nothing supporting Europe. Some members and brand owners are not happy but Europe needs a reality check with what is competitiveness. The cost of collection in Europe is so high. There are some countries (outside the EU) that are collecting waste at the cost 10 times lower than the EU. We need to give some time, not forever, for the industry to get balanced," Petcore Europe president Antonello Ciotti said. The rules will help secure the chemical recycling market in Europe and may stimulate further investment and progress on projects because they are a move towards chemically recycled material counting towards recycled content targets, some market participants said. "Today is a major step forward for circular plastics because it puts in a clear harmonised mass balance approach for recycled content... this clarity in rules will support investments and further capacity in Europe", Chemical Recycling Europe chairman Valentijn De Neve said. "The European preference also shows a strong signal that there is support to make this a European competitive market and we look forward to the next steps to use this framework also for the Packaging and Packaging Waste regulation (PPWR)", he said. Rules for allocating chemically-recycled content by mass balance for the more wide-ranging recycled content requirements in PPWR — due to come into force in 2030 — will need to be confirmed independently. But many in the industry expect those agreed under the SUPD to act as a precedent in the decision process. But non-governmental organisation Zero Waste Europe (ZWE) was much less supportive. "If the main points remain the same, including the same allocation rules with a fuel-use exemption model, we would not be able to support the text," said Lauriane Veillard, ZWE policy expert on chemicals recycling and plastic-to-fuels. By Chloe Kinner, Will Collins and Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Eastman raises rPET output
Eastman raises rPET output
Houston, 30 January (Argus) — US recycling company Eastman's Kingsport, Tennessee, molecular recycling facility had its strongest year for chemical recycling in 2025, producing more than 2.5 times the amount of recycled content that it produced in 2024. The Kingsport facility generated approximately $60mn in incremental earnings in 2025 compared with 2024, as chemically recycled materials saw increased use from major brands including Pepsi. Eastman expects that momentum to continue into 2026 and projects about $39mn in additional circular economy earnings as rPET contract volumes increase and demand for chemically recycled content strengthens. "We are really the long-term solution to chemical recycling," said Mark Costa, board chair and chief executive officer. He added that mechanical recycling yields remain low because the process only cleans 25-35pc of clear bottles. Mechanical rPET degrades faster than expected, causing yellowing, graying, and even structural issues such as bottle collapse during case stacking, the company said. Eastman plans to expand the Kingsport facility's production capacity by 130pc to increase supply growth while development of a second chemical plant remains paused. The second facility is on hold following the loss of a US Department of Energy grant in June 2025. However, the Kingsport expansion and improved efficiency will allow Eastman to continue scaling chemical recycling production while maintaining strong cash flow. The company generated nearly $1bn in operation cash flow in 2025, reinforcing its ability to continue investing in circular technology despite market uncertainty. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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