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.
UK plastic PRNs tight without big buyer sell-back
UK plastic PRNs tight without big buyer sell-back
Even with a lower compliance target, the pace of PRN crediting needs to speed up over the rest of the year London, 16 October (Argus) — Supply and demand of UK plastic packaging recovery notes (PRNs) is likely to stay tightly balanced up to the end of the year, possibly causing prices to level out or rebound, despite the UK Environment Agency reducing the penalty threshold for non-compliance to 83pc of targets. The key swing factors are to what extent companies have over-bought and are likely to sell back to the market, and to what extent export-generated notice availability will tail off. Around 295,000 UK plastic PRNs need to be credited to producers in September-December for buyers to reach 83pc of their obligations for 2026, equivalent to 74,000 plastic PRNs/month, Argus analysis of Environment Agency data shows. The lower 83pc threshold was announced by the UK government in a r egulatory position statement (RPS) last week. It is much fewer plastic PRNs than a 100pc obligation would require but is higher than the 73,000 plastic PRNs/month average in January-August, indicating that the final four months of the year could still see higher PRN demand than over the year so far, despite the RPS. This analysis assumes companies will purchase their minimum penalty-free obligations. While producers' legal obligations remain unchanged, regulators have indicated they will not enforce against compliance schemes purchasing only 83pc of plastic obligations, UK compliance organisation Ecosurety analyst Matthew Austin says. If some companies continue to aim for 100pc compliance, demand could be even higher, Austin says, although he noted there has been little evidence of customers wanting to buy beyond their effective requirement, particularly given high compliance costs and wider economic pressures. Tight supply of plastic PRNs up to the end of the year is expected to drive up prices. But plastic PRNs were assessed at £500/PRN ($660/PRN) on 9 October, £100 lower than a week earlier, and prices appear to have dropped further this week. Plastic PRN prices fell directly after the RPS was released and have continued to decline since then, although remaining above the historical average. PRN supply could be buoyed by companies that bought more than 83pc of their requirement prior to the RPS selling on the secondary market. The amount available for sell-back is a key unknown, but these additional PRNs are likely to find buyers, given how tight supply is, market participants say. These supplies are likely to come from direct buyers only, as those in compliance schemes may choose to move PRNs between members, Ecosurety says. Scheme members' obligations are aggregated into a single obligation rather than managed individually. Export PRNs set to drop Supply of plastic packaging export recovery notes (PERNs) could decrease if the gap between current PRN prices and 2027 prices remains wide. A change in the UK's extended producer responsibility (EPR) regulation this year meant exporters can now only claim PERNs on material once it has reached its destination. Deals for 2027 PRNs have been reported at £300-350/t, around £100/t lower than current prices. Exporters may become increasingly reluctant to ship material that cannot reasonably arrive before year-end. This creates a potential cut-off point for shipments intended to generate 2026 PERNs, reducing supply in the final weeks. However, Andrew Letham from PRN marketplace The Environment Exchange (t2e) said that if December prices fall too close to the 2027 price, there is a risk of transitional tonnage leaking into 2027, which would tighten the 2026 market further. Waste prices start to fall UK waste bale prices started to fall after the lower PRN threshold was announced, and there have been indications of further downward pressure on prices this week. Prices for 98/2 bales typically react more quickly to PRN price changes as these are more exposed to export markets and have higher bale-to-pellet yields. However, UK prices for PP, HDPE and PET waste bales were all assessed lower last week, after PRN prices fell. Further changes in PRN/PERN values would be expected to influence bale prices in the coming weeks, because the value of recovery notes forms part of buyers' purchasing calculations. But spot material is in short supply at present, because many suppliers pre-sold in expectation of the intervention, not wanting to be caught out on the wrong side of price volatility, market participants say. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
UK sets minimum obligation, plastic packaging recycling
UK sets minimum obligation, plastic packaging recycling
London, 9 October (Argus) — Packaging producers now only need to meet a minimum of 83pc of their 2026 plastic recycling obligations under UK Extended Producer Responsibility, the Environment Agency said. The UK Environment Agency (EA) has released a regulatory position statement (RPS) setting minimum percentages for three packaging materials of recycling obligations that must be met by packaging producers in 2026 to comply with UK extended producer responsibility (EPR) obligations for the 2026 compliance year. The minimum proportion of a producer's recycling obligation is lowest for plastics, at 83pc, while the EA also released minimum proportions for wood and steel at 90pc and 92pc, respectively, and stated that full obligations must continue to be met for other packaging materials. An announcement from the government had been anticipated by many market participants following rumours that the ministry for environment, food and rural affairs (Defra) held a meeting at the start of September in which a revision of the obligations to purchase Packaging Recovery Notes or Packaging Export Recovery Notes (PRNs/PERNs) was discussed. This came about owing to a shortfall in the generation of PRN/PERNs compared with the expected annual obligation, partly because of stricter requirements placed on recyclers and exporters this year. PRN/PERN prices for plastic have traded at and above £600/t ($794/t) at times this year, a record high. PRN/PERN prices for plastic had already started to fall in this morning's trading from an opening price of £575/t to around £500/t. The fall in PRN/PERN prices is likely to affect bale prices, which include a consideration for the value of the PRN/PERN that the buyer expects to generate from the material. UK recyclers generate one PRN for every tonne of recyclate they produce from domestic packaging waste. Likewise, exporters generate one PERN for every tonne of plastic waste exported to accredited recyclers. Companies placing packaging onto the UK market have an obligation to purchase a certain number of credits each year. By Anna Fittock, Chloe Kinner and Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Target delays packaging goals to 2035
Target delays packaging goals to 2035
Houston, 22 September (Argus) — US retailer Target has extended its packaging sustainability timeline to 2035 after falling short of a goal to make all owned-brand packaging recyclable, compostable or reusable by 2025. Target said in its 2026 sustainability and governance report that 41pc of its owned-brand packaging met the retailer's circularity criteria in fiscal year 2025, unchanged from 2024 and up from 39pc in 2023. The company had previously targeted 100pc compliance by 2025. The retailer also used less post-consumer recycled (PCR) resin in packaging during fiscal year 2025. Total PCR consumption fell to 56,275 metric tons (t) from 62,885t in 2024. Recycled content in Target's plastic shopping bags remained unchanged at 40pc from 2023-25. Target highlighted several packaging redesign initiatives aimed at improving recyclability. The company removed carbon black colorant from polyethylene terephthalate (PET) trays used for bakery, deli, cracker-cut cheese and fresh mushroom packaging, making nearly 431,000lbs of packaging more compatible with recycling systems, according to Target. The retailer also updated more than 2,000 up&up body wash bottles made from high-density polyethylene (HDPE) to maintain recyclability and product performance. The bottles contain 25pc PCR content. Target launched its 'Target Forward' sustainability strategy in 2021 and acknowledged later that year that some packaging and sustainability goals could be difficult to achieve within the original 2025 timeframe. The company now aims to design 100pc of its owned-brand products for a circular economy by 2040, which will expand on its 2035 goal of 100pc recyclability to include changes to improve product design and material choice. Target's revised packaging timeline follows similar reassessments by several major consumer brands and retailers that have pushed back sustainability commitments. Despite extending its packaging goal, Target joined the Extended Producer Responsibility Leadership Forum in 2025, a coalition of consumer packaged goods manufacturers and retailers focused on stakeholder education and the development of EPR frameworks. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
PET recycling key to emissions cuts: NAPCOR
PET recycling key to emissions cuts: NAPCOR
Houston, 15 September (Argus) — Expanding PET recycling rates and increasing recycled-content use could reduce lifecycle greenhouse gas emissions intensity from US PET beverage bottles by 57pc by 2050, the National Association for PET Container Resources (NAPCOR) said in a report today. Total annual emissions from the sector could fall by 42pc even as PET production volumes rise, NAPCOR said in a new decarbonization roadmap. The roadmap identifies a combination of higher recycling rates, greater recycled PET (rPET) use, designing lighter bottles, renewable energy adoption and manufacturing efficiencies as the main drivers of emissions reductions. Total industry emissions are projected to decline to about 1.9mn metric tonnes (t) of CO₂ equivalent by 2050 from roughly 3.3mn t in 2023, the report shows. Substantial reductions could occur well before 2050. Emissions intensity from producing 16.9oz PET water bottles could fall by about 44pc by 2035 from a 2023 baseline, while emissions from carbonated soft drink bottle production could fall by 35-43pc over the same period. Carbonated soda bottles are typically thicker than still water bottles due to pressure from carbonation. Lightweighting and renewable energy provide the largest emissions reductions, but stronger collection systems, higher recycling rates and increased recycled content remain important long-term contributors, the roadmap shows. "PET is the most circular polymer and one of the best materials for packaging, and it will get even better by reducing its carbon emissions," NAPCOR technical director Shankar Prabhushankar said. The roadmap assumes recycled-content levels in PET bottles could approach 100pc over the long term, while collection and recycling rates increase to about 60pc. Greater progress will require stronger collaboration across the value chain to improve recovery rates, Prabhushankar said. The US PET recycling rate is only about 30pc, far below rates in the upper 80pc to 90pc range in some western European and Asian countries. Greater collaboration among industry, regulators and policymakers is needed to improve collection rates and ensure reclaimers have access to consistent supplies of high-quality PET bales to support future investment in recycling capacity, Prabhushankar said. The study frames recycling as a manufacturing and supply-chain issue rather than solely a waste-management strategy. Capturing more PET bottles for recycling can increase domestic supplies of recycled feedstock, strengthen US manufacturing and improve supply-chain resilience, the report shows. "Environmental progress is achievable with economic growth," Prabhushankar said, adding that the study demonstrates PET demand can expand while reducing environmental impacts. The roadmap could provide a framework for extended producer responsibility (EPR) organizations and policymakers as they develop EPR programs with eco-modulated fee structures that vary based on packaging recyclability. The report's lifecycle assessment findings could help determine which packaging materials are incentivized under those systems, Prabhushankar said. The roadmap, developed by independent environmental consulting firm Eastern Research Group, evaluates four major US PET beverage bottle formats, including water and carbonated soft-drink bottles. The analysis builds on a peer-reviewed, ISO-compliant life-cycle assessment completed in 2023. 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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