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.
Canada tariffs target US PE bags, plastic tableware
Canada tariffs target US PE bags, plastic tableware
Houston, 3 September (Argus) — Canada's latest retaliatory tariffs against the US will apply to several plastic products, including polyethylene (PE) bags and plastic tableware, according to the country's Department of Finance. Canada announced tariffs ranging from 15-50pc on about $20bn of US goods, which are expected to take effect on 8 September. Plastic products on the list include packaging for goods such as stoppers, lids, caps and other plastic closures, along with plastic tableware, kitchenware and household appliances made of plastic, all of which will face a 50pc tariff, according to Canada's tariff list. The move is one of the clearest instances of plastics being targeted in the latest trade actions between the US and Canada. These products are typically made from PE and polypropylene (PP). PE bags are usually made from high density polyethylene (HDPE) or low density polyethylene (LDPE), while plastic tableware, lids, caps and other closures are often made from PP. Some packaging components may also use polyethylene terephthalate (PET). Any change in cross border demand for products covered by the tariffs could alter trade flows between the US and Canada and affect demand for recycled resin if material prices rise, though the extent of any market impact remains unclear. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Recyclers urge EU to prioritise Europe material in PPWR
Recyclers urge EU to prioritise Europe material in PPWR
London, 2 September (Argus) — European waste management and recycling associations today called on the European Commission to ensure that the implementing act it is developing for the Packaging and Packaging Waste Regulation (PPWR) leads to favoured status for European-made recyclates in European-made packaging. It called for a ‘Made in Europe' approach, meaning that it is more favourable for recycled content requirements for European-produced packaging to be met by recycled plastic resin made from waste collected and recycled in Europe. It pointed to the recent implementing act for the EU Single-Use Plastic Directive as an example. For packaging made outside Europe, the associations said that recycled resin should only count towards the recycled content targets if the commission deems the country of origin to meet EU standards for environmentally sound waste management. They added that the recycling facility that produces the pellets should also have to be independently certified to prove that it complies with the environmental, operational and traceability requirements that EU recyclers must meet, for recyclates to count towards post-consumer resin targets. The commission had called for evidence last month on PPWR recycled content rules, inviting EU and non-EU stakeholders to submit feedback on the topics by 16 September. It plans to publish a draft implementing act after the consultation, with final adoption planned for the fourth quarter. By Anna Fittock Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Federal court backs Oregon EPR program
Federal court backs Oregon EPR program
Houston, 28 August (Argus) — A federal judge has rejected a constitutional challenge to Oregon's Plastic Pollution and Recycling Modernization Act (RMA), allowing the state's packaging extended producer responsibility (EPR) program to continue. The ruling marks one of the first federal court decisions to examine the legality of a US packaging EPR program as similar laws are rolled out in states across the country. Oregon's EPR law, which was passed in 2021, requires producers of packaging, paper products and food serviceware to help finance the collection, sorting and recycling of those materials. Producers must report covered materials sold into Oregon and pay fees that support the state's recycling system. Circular Action Alliance (CAA) administers the program and oversees producer compliance. The National Association of Wholesaler-Distributors (NAW) filed suit against Oregon in 2025, arguing the law placed a burden on interstate commerce, imposed unreasonable costs on businesses, and granted too much authority to CAA. In a decision issued on 27 August, US District Judge Michael H. Simon dismissed those claims, finding the program does not violate constitutional protections governing interstate commerce or due process. Simon wrote that Oregon has been at the forefront of recycling policy development and found the state had a legitimate interest in addressing packaging waste through the EPR program. The court also rejected NAW's objections to exemptions available to government entities and certain smaller businesses, finding insufficient evidence that the provisions favored Oregon companies over out-of-state firms. NAW additionally argued that producer fees collected under the program were excessive. The association pointed to CAA financial data showing the organization collected more in fees than it spent during 2025. Simon disagreed, finding the difference reflected funds being set aside as the program expands rather than evidence of an unlawful fee structure. The ruling further found that producers are not required to participate through CAA alone because Oregon law allows the formation of alternative producer responsibility organizations and provides other compliance options. Simon also determined the law includes sufficient procedural safeguards. Producers facing enforcement actions are entitled to notice, opportunities to correct violations, administrative review and judicial appeal before penalties become final. The decision allows Oregon's EPR program to continue moving forward as covered producers remain subject to reporting and fee obligations under the law. Producers that fail to comply may face civil penalties of up to $25,000/day, and Oregon regulators may prohibit the sale of covered products in the state until violations are resolved. The ruling comes as NAW continues to challenge packaging EPR laws in other states. The trade association filed lawsuits against California's EPR law in June and Colorado's Producer Responsibility Program for Statewide Recycling Act in July, raising similar concerns over fee-setting authority, producer obligations and interstate commerce. By Dona Davis Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Pyrolysis can optimise: CRE
Pyrolysis can optimise: CRE
The cost gap between circular and virgin polymers will narrow over time, but only with investment and regulatory change London, 21 August (Argus) — Pyrolysis yields will improve as the industry matures, boosting availability of circular polymers and reducing the cost gap to virgin polymers, industry association Chemical Recycling Europe (CRE) president and Dutch technology company BlueAlp chief executive Valentijn de Neve tells Argus. "We've already come a long way by influencing the process conditions that mean you minimise gas production, maximise oil production and integrate gas fractions into downstream units to make sure they do not become fuels but become materials," de Neve says. Recouping plastic-derived pyrolysis oil from char and bitumen fractions produced by pyrolysis units, or using them as a standalone product, can also help, he adds. A recent paper by the EU's Joint Research Committee (JRC) stated that circular polymers likely need to cost around three times more than virgin polymers on average for the industry to sustain its costs. CRE's view is that such a large cost gap is similar to that seen in other nascent sustainability transition industries and will narrow over time and with investment, de Neve says. "The JRC rightfully says that circular is more expensive than virgin and that incentives, penalties and enforcements are required to build up capacity," de Neve says. But "CRE thinks this report misses what is possible in terms of development of that price", because the data it uses was gathered from early facilities and it does not factor in improvements in operating rates, scaled-up technologies and innovative business models that various CRE members of are using, he adds. Attracting investment will be the next challenge. European pyrolysis capacity will have to expand by 6-8 times from current rates in order to provide the 10pc recycled content for non-PET contact sensitive plastic packaging by 2030 that the EU Packaging and Packaging Waste Regulation (PPWR) dictates, Argus Consulting says. This necessary scale of expansion far outweighs the current announced project pipeline, Argus data show. But de Neve is confident that there are more than enough projects in the pre-final investment decision stage to meet demand, if investors can be persuaded to pull the trigger and plants can be ramped up to target operating rates. "Operating rates will be sufficient" but regulators need to create an environment that persuades would-be investors to commit, he says. "A couple of pieces of secondary legislation are needed… we need mass balance fast, we need clarity around the enforcement in the right way, and we need... European materials to have a level playing field," he says. One commonly cited regulatory hurdle of PPWR for the industry is its so-called revision clause, which gives the European Commission options to enact changes, delays or exemptions to the 10pc recycled content requirement if it thinks it cannot be achieved. Under the regulation, the commission has until February 2028 to make a final decision. The JRC report represents a positive early sign that the commission thinks enough capacity can be built under the right market and regulatory circumstances, strengthening the case against changes to the regulation, de Neve says. The JRC report is "very clear that building the capacity needed for this regulation is not the issue", he says. BlueAlp is seeing particular interest in developing projects with its technology from private-sector financial institutions and waste management companies, de Neve says. Petrochemicals companies and downstream consumers such as brand owners are also active across the wider industry, he says. However, demand for circular polymers has been weak in the past 12 months. Whether because of regulatory uncertainty, cost cutting or low confidence in the robustness of the supply chain, many converters are in no rush to switch to using more chemically recycled materials in packaging. The pyrolysis industry is going through a tough period, and finding ways to bring demand forward ahead of the 2030 target is key if it is be achieved, de Neve says. "In 2030, there's the mandatory demand for circular content, and today it's a voluntary market. And between now and 2030, that's a time that we all need to bridge", he says. Extended producer responsibility measures with discounts for circular content are a positive step, he says. And a proposal for companies to be able to count recycled content used before 2030 towards their PPWR obligations from that date, which de Neve describes as "pragmatic", is gaining momentum within the industry — although it so far remains unclear whether regulators are open to such a move. "I think the good news is that from waste all the way to brand owners and financial institutions, there's a willingness to invest in this sector and we could attract more capital the moment the rules of the game are further clarified. And with that, I actually am quite optimistic on what is planned for the next eight months in terms of secondary legislation," he says. De Neve was speaking on the Argus Chemical Conversations podcast, "Can pyrolysis develop in time for PPWR?", which is available on the Argus website and podcasting apps. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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