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.
EU readies new bioenergy strategy
EU readies new bioenergy strategy
Brussels, 26 November (Argus) — The European Commission is today expected to adopt a new strategy aimed at boosting "nature-positive" investment and making better use of biomass. The latest version of the strategy seen by Argus deleted wording from a previous leaked draft that mentioned disincentivising "inefficient" biomass combustion, including changes to EU and national subsidies to avoid prioritising combustion over material use. Industry groups last month had criticised the previous draft strategy for "punishing" biomass combustion and ignoring the role of sustainable biofuels. The commission may still amend the current strategy document, which sets out a direction for policies but is not itself a legal proposal. Demand for biofuels will likely rise from 2025, in part thanks to the bloc's ReFuelEU Aviation and FuelEU initiatives, but sustainable biomass remains finite and its use is most effective in hard-to-abate sectors, the commission said in the document. The commission wants to add value to energy, industry, food, health and other sectors through biomass processing and biotechnology. The body said it would, for example, support uptake of bio-based plastics and novel materials by 2027 alongside recycling. Officials could also assess whether EU-wide definitions could support certification and scaling of bio-based polymers. And an EU methodology could certify long-lasting biogenic carbon storage in buildings under the carbon removal and carbon farming certification framework. The commission will issue legislation such as the upcoming BioTech Acts to bolster industrial production of bio-based chemicals and may target bio-based content requirements in some products. In the strategy, the commission and the European Investment Bank will use finance instruments to support biorefineries that incorporate new technologies. And a forthcoming Circular Economy Act aims to support biogas and biomethane production as well as using digestate as a fertiliser. A review next year of the bloc's emissions trading system will also explore potential for scalable biogenic carbon, capture, use and storage projects. The EU is also scheduled to review its Renewable Energy Directive by 2027 and assess how national biomass support schemes affect biodiversity. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Q&A: European Bioplastics wants more EU policy support
Q&A: European Bioplastics wants more EU policy support
London, 26 November (Argus) — The bioplastics industry in Europe hopes to see more policy support for the sector from the EU, as costs and investments remain a concern even though demand from the packaging sector is growing, European Bioplastics' EU Policy Affairs manager, Julie Pieters told Argus. We have seen some regulatory support from the EU for the recycling industry with content targets, particularly in the Single Use Plastics Directive (SUPD) and the Packaging and Packaging Waste Regulations (PPWR), but is there any legislation that is in the works to support bio-attributed and bio-based plastics? At the moment the only thing we have in place is a communication from the European commission in 2022 on bio-based, biodegradable and compostable plastics. But this is only a communication. In the Packaging and Packaging Plastic Waste Regulation (PPWR) there is a legislative hook for bio-based plastics. In principle, the review needs to be done by 2028 but the European Commission told us that it would like to do it before 2027. They would need to do a review of where the bio-based plastics market is today, and based on that they could begin a legislative proposal for bio-based content in plastic packaging, setting targets and seeing if bio-based content can be used to count towards recycled content targets that are already in place. Some applications of plastic packaging will also be marked as having to be made compostable. EU member states can also make this list of products longer if they wish to, so some bioplastic examples are also showing real opportunities in the field. There has also been some talk from people about having bio-based targets in other sectors like the automotive or construction field. A great example of this would be in the end-of-life vehicle regulation (ELV) proposed by the EU. Bio-based targets on plastics in cars is still in trilogues [a trilogue is a negotiation between the European parliament, the council and the European commission] so we would have to wait to see what comes out in the final directive. What are the hurdles that bioplastics producers are facing, both in Europe and globally? I think the European bio-plastics industry faces similar hurdles to other European industries — trade hurdles, investment hurdles, competition with other regions in the world. We developed a lot of the bioplastics technology in Europe but the industrialisation can often take place outside of Europe because of lower energy costs and investment opportunities. I think also policy support can help to boost the sector both in Europe and globally. We have had members of the association want to invest in Europe but in the end they have ended up going to other regions because the market is just bigger. I don't think the support mandated from the EU and the clarity for producers in Europe is not quite there yet, especially when it comes to encouragement in developing the market. What parts of the bioplastics space in Europe are currently faring well commercially, are there any products or projects that are doing particularly well? Or are there any end-use sectors that are seeing uptake? Currently, the most success we are seeing is in the packaging sector, mainly related to food packaging at the moment. Around 50pc of the bioplastics demand comes from packaging. Things like fruit and vegetable bags and compostable bin liners are doing well in terms of end-use. Polylactic Acid (PLA) is seeing some growth potential in some market segments as well with uptake. Some drop in polymers are also seeing movement for more durable goods, cosmetic packaging, automotive components as well especially if they allow for rapid substitution of fossil based carbon. Does the association have a position on the difference between feedstocks? For example take bio-attributed plastics such as bio-PE derived from bionaphtha via a mass balanced approach versus something like PLA? How do you define biomass feedstock? I think it can occasionally be a bit of complex question to answer particularly in terms of mass balance. European Bioplastics association represents all types of bioplastics and we have a position on the technology of mass balance which can help allow us to remove some fossil-fuel derived material from the plastics space but there needs to be safeguards as well, especially in terms of communication towards the consumer. In terms of biomass feedstock at the association we define it as being the material or product is partly derived from biomass (plants). Biomass used for bioplastics usually stems from material like corn, sugarcane or cellulose. It is also important to note that some material that can be biobased but not bio-degradable, some can be biodegradable but not bio-based and some can be both bio-based and bio-degradable. The European Bioplastics Conference is taking place in Berlin on 2-3 December. What are some of the key themes that will be discussed there? It's the 20th anniversary of the conference so it will look back at the last 20 years of the bioplastic industry in Europe and try to provide a snapshot of where the bioplastics market in Europe is at currently. The bioeconomy strategy report published by the European Commission just before the conference will also play a role in discussions. In the bioplastics sphere, the industry is struggling with the same kind of difficulties as the petrochemical sector in Europe, which we know is not doing well at the moment. But as it is more of an innovative sector this can provide an additional burden, especially when it comes to feedstocks and feedstock pricing. The conference is timely in the sense we see some positive policy developments coming out of Brussels and we hope they come in time to support the sector. Otherwise, the conference always provides the opportunity to discuss the latest innovations in the biobased and compostable plastics sphere and to go deeper into their functionalities. By George Barsted Argus recently launched the industry's first biochemical reference prices, built on Argus methodology and derived from ISCC-certified bio-naphtha. Published monthly and calculated from daily bionaphtha and biopropane premiums, these references cover bio-attributed ethylene, propylene, butadiene and benzene. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Italian recyclers stop collecting bales from sorters
Italian recyclers stop collecting bales from sorters
London, 14 November (Argus) — A number of Italian recyclers in the Assorimap industry association have stopped collecting plastic waste from sorting centres, pending "urgent measures" to save the country's recycling sector, which it said has suffered an 87pc reduction in operating profits since 2021. Assorimap said this week that the Italian recycling industry is suffering from high energy costs compared with other parts of Europe, and "unsustainable competition from non-EU imports of virgin and recycled plastic at rock-bottom prices". It said that its members would shut down recycling plants in response to the crisis. The association is seeking measures including bringing forward mandatory recycled content in plastic packaging to 2027 — from 2030, as laid out under the EU's Packaging and Packaging Waste Regulation (PPWR) — as well as recognition of carbon credits for secondary raw material suppliers and increased control on the traceability of imports. An Italian recycler told Argus today that it had stopped collecting bales from sorting centres, and that it expected that others had begun to do the same, although some pickups may continue, particularly where transport had already been arranged. A source from a sorting centre confirmed that several large customers that had bought PET and HDPE bales from their company through the Italian auction system for November were declining to collect them. They said that, unless the situation is resolved, they would soon fill up their capacity for bale stocks and be compelled to stop taking in mixed plastic waste at the facility. Plastic waste from the Italian separate collection system is sorted into individual fractions, which are then sold to recyclers via a monthly auction. The Italian government recently announced that it would delay the implementation of a €450/t ($523/t) tax on single-use plastics — which would include exemptions for recycled plastics — to 1 January 2027, from 1 July 2026. Implementation of the tax has now been delayed eight times since an initial decree in 2020. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Whirlpool sees 2025 appliance market flat to down
Whirlpool sees 2025 appliance market flat to down
Houston, 28 October (Argus) — Appliance maker Whirlpool anticipates the appliance market to be flat to down slightly, by three percentage points, both overall and for North America this year, Whirlpool said in its third quarter earnings release. Whirlpool's third quarter net sales rose by 1pc to $4bn up from $3.9bn in the prior year because of new product releases, specifically in North America. Whirlpool plans to launch over 100 new products globally in 2025. North American net sales rose by 3pc year over year in the third quarter, strengthened by new product sales. Net sales in Latin America and Asia were down 6pc and 7pc, respectively, because of volume declines. Whirlpool's small domestic appliances (SDA) segment sales increased 10pc in the third quarter supported by new product launches. Of Whirlpool's major appliance products sold in the US, 80pc are produced in the US, lessening the strain poised by tariffs. The company is still battling imports that were front loaded prior to tariffs but is starting to see import inventories and arrivals decline. Appliance makers us polyurethanes for insulation and sealants. Polyurethane demand has been below historic levels this year as tariffs and economic uncertainty have slowed consumer demand, according to market participants. Many polyurethane participants expect next year to look similar to 2025 for appliance application demand. Whirlpool expects recovery in the housing market to benefit the appliance maker as they have a high home builder relationship allowing Whirlpool appliances to be placed in new builds. The US has a shortfall of three to four million housing units, the company said. The company delayed its expectation of the US housing market recovery in 2025 moving it into 2026 to begin a multi-year rebound once interest rates ease. Despite a challenging 2025, the company views its North America business well placed for future growth. Whirlpool reported a $73mn profit in the third quarter, a decrease from $109mn recognized last year. By Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
K-Show Plastics Preview: European PE/PP Market Developments
Discover how tariffs and trade shifts are shaping the European polyethylene and polypropylene markets in this K-Show preview.