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.
BioBTX picks BlueAlp as pyrolysis partner
BioBTX picks BlueAlp as pyrolysis partner
London, 22 April (Argus) — Dutch pyrolysis technology provider BlueAlp will provide a pyrolysis unit to serve as part of BioBTX's planned facility at Delfzijl in the Netherlands, which is intended to produce aromatic petrochemical intermediates from non-fossil feedstock. An investment decision has been taken on the pyrolysis unit, which is under construction, and is expected to be transported and integrated into the Delfzijl site from December this year, BlueAlp chief executive Valentijn De Neve told Argus . Start-up is planned for 2028. The unit will have an input capacity of around 20,000 t/yr. The primary feedstock will be plastic waste, which will be pyrolysed in the BlueAlp unit. The output from the pyrolysis unit will then be fed into a catalytic unit developed by BioBTX to be converted into a benzene, toluene and xylene (BTX) mixture. This mixture contains "key chemical building blocks used in industries such as automotive and advanced materials", the companies said. The use of BioBTX's technology to produce aromatics, bypassing the steam cracker step of the petrochemical chain, may allow increased flexibility to pyrolyse organic biomass feedstocks, De Neve said, although plastic waste will be the main feedstock used. Organic feedstocks are typically avoided by pyrolysis producers, because they lead to more oxygenates and nitrogenates in the pyrolysis oil that are undesirable in material destined for further processing in steam crackers, he said. The main focus of pyrolysis chemical recycling industry has been on supplying circular plastics for packaging, particularly polyolefins. But there are specific "niches" of demand for circular aromatics, particularly xylene and toluene, De Neve said. He attributed this partly to the EU's End-of-life Vehicles Regulation (ELVR), which will mandate recycled content in automotive plastics from six years after its expected official adoption this year, as well as voluntary commitments from other industries, including pharmaceuticals. The BioBTX approach is a "low-capex, low-energy" way of producing circular aromatics, as it avoids the need for cooling and reheating of pyrolysis oil, De Neve said. And, as an on-purpose route, it has a higher yield of circular aromatics than processing pyrolysis oil through a steam cracker. The pyrolysis technology for Delfzijl matches that which BlueAlp licensed to Italian waste management company Recupero Etico Sostenibile, which is being installed at the firm's site in Pettoranello del Molise, Italy. Construction of the plant is progressing, with start-up expected by the end of this year, De Neve said. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
LyondellBasell sustainable polymer sales rise in 2025
LyondellBasell sustainable polymer sales rise in 2025
London, 15 April (Argus) — Chemicals producer LyondellBasell produced and marketed roughly 206,000t of recycled and renewable-based polymers in 2025, slightly higher than the 203,000t the company reported for 2024 . The company aims to produce and market 800,000 t/yr of recycled and renewable-based polymers by 2030. This target was revised down in February 2026 from a previous goal of 2mn t/yr. Part of the progress towards the target will come from the start-up of its first MoReTec pyrolysis plant in Wesseling, Germany, which will have a capacity of 50,000 t/yr, the firm said. LyondellBasell also expects regulatory frameworks, increased consumer focus and voluntary commitments from brands to support stronger demand. But it said that "greater clarity on how chemically recycled content can be attributed to products, including the use of mass-balance accounting, is an important next step for EU policymakers to strengthen certainty and drive investment in chemical recycling". Chief executive Peter Vanacker said that "durable demand signals and willingness to adopt circular and lower-carbon materials are needed to justify large-scale infrastructure and technology deployment across the value chain". In December 2025 , LyondellBasell said it had paused plans to build a plastic recycling hub in Knapsack, Germany, "due to the broader economic environment". It also deferred a final investment decision on a second MoReTec pyrolysis plant in Houston, Texas, until market conditions improve. The company said in its latest report that the deferral reflected "capital discipline, and the expected pace of demand growth". "This provides us more time to engage with regulators, customers and brand owners in North America," it said. LyondellBasell highlighted stronger demand for circular plastics from the automotive sector. "Most of our automotive customers have introduced circular solutions, actively staying ahead of upcoming end-of-life vehicle mandates," said Torkel Rhenman, executive vice-president of the company's Advanced Polymer Solutions segment. Sales of mechanically recycled polymers marketed under the Circulen Recover brand to the automotive industry tripled in 2025 compared with 2024, Rhenman said. By George Barsted and Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Vitol gets permit guidance for Rotterdam PPO project
Vitol gets permit guidance for Rotterdam PPO project
London, 15 April (Argus) — DCMR Milieudienst Rijnmond, the joint environment service for the Province of South Holland, has granted the first "declaration of permitability" to Vitol Plastic Recycling (VPR) for its Rotterdam pyrolysis project. The declaration clarifies what is likely to be required for a project to succeed from an environmental and permitting perspective. This guidance helps to substantiate further development steps such as finance/investment decisions and subsidy applications. "At an early stage, plans are often not yet sufficiently detailed for a complete permit application. Nevertheless, at that point, there is usually already enough information available to make guiding statements—with the aid of a declaration of permitability—that help the company make choices", DCMR Milieudienst Rijnmond managing director Daan Molenaar said. "It is important to have clarity regarding the feasibility of innovative projects at an early stage. This permitability statement helps us make more targeted choices and further develop our plans", VPR chief executive Jeffrey van Geloof said. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU virgin-recycled premiums extend record gains
EU virgin-recycled premiums extend record gains
London, 13 April (Argus) — The competitiveness of recycled polymers compared with their virgin equivalents in Europe have extended records in April, as exports of plastic and petrochemical feedstocks from the Middle East remain highly disrupted. Demand for recycled polymers increased, particularly for less-demanding and cost-saving applications. But many recyclers are concerned about the longer-term implications of the entirely supply-driven price rally on their demand and margins. Based on spot prices, the current cost comparison between virgin and recycled polyolefins and polyethylene terephthalate (PET) is the most skewed in favour of recyclates as a cheaper option since Argus began assessments. Data start in 2022 for polyolefins and in early 2024 for PET, when Argus launched its delivered northwest Europe PET resin spot assessment. In polyolefins, buyers of low- and linear low-density polyethylene (LDPE and LLDPE) on the spot market to make black or dark-coloured films could save more than 50pc by using recycled pellets, notwithstanding additional processing costs. Manufacturers of corrugated HDPE pipes could save 40-50pc by switching to recycled material. For PET, rPET flakes are now €300/t less expensive than virgin PET, having only become cheaper — for the first time in two years — in early March. Higher virgin polymer prices result from growing tightness and rising production costs, particularly because of disruption to exports of polyethylene (PE), polypropylene (PP), crude oil and naphtha through the strait of Hormuz. Recyclate prices have risen to a much lesser extent than the virgin equivalents, as the direct effects of the war on recycled supply chains has been much less. Higher demand for recyclates is particularly prevalent in non-packaging applications with fewer technical barriers to material substitution. It can also be seen in more complex applications where converters may not have maximised their allowance for recycled content in 2025 and early 2026 because of cheap virgin polymer prices. The increase in demand is leading recyclers to target margin improvement, following a long period in which cheap virgin polymers squeezed profitability in the industry. Margins for rPET, rHDPE pipe and rLDPE/LLDPE have increased since the start of the war. Margins for rPP have not yet gained by much, owing to rising feedstock costs, but more upward pressure on rPP pellet prices is likely in the coming weeks. Downstream demand at risk Recyclers may be benefitting from geopolitical turmoil in the short term, but many are concerned about the longer-term effects. Unlike in the Covid-19 pandemic, when virgin polymer prices rose in part because of higher consumer spending power, price inflation arising from the war is likely to negatively effect demand. The latest S&P Global eurozone construction Purchasing Managers' Index (PMI) survey showed the most pronounced fall in new orders since October, with firms pointing to surging energy prices as a key factor. Consumer confidence in the EU27 countries hit a 2.5-year low in March, Eurostat data show. Converters are concerned about their ability to pass through the recent cost increases within supply chains. Many downstream customers may not yet have seen the full extent of the increases, which are passed down the chain with a delay. Some converters said they are at a juncture, where some production lines would need to be stopped if downstream buyers are unwilling to pay higher prices. Recyclers are already facing higher energy costs, with tighter global natural gas supply because of Emirati and Qatari LNG outages. European gas and electricity price increases have been capped since the start of the conflict by higher year-on-year supply from elsewhere, relatively warm recent temperatures and market expectation of a return to 'normal' supply in the coming months. In a scenario where a ceasefire is agreed and supply starts to normalise within the next four to six weeks, Argus Consulting projections suggest Europe can avoid a significant storage deficit into the winter. But the risk of major tightness increases the longer the war continues, and the risk of low EU natural gas storage levels heading into next winter is a concern for the recycling industry, with gas-fired generation setting the marginal power price in most of Europe. By Will Collins Virgin PET premiums to rPET, spot del NWE €/t Virgin PE PP premiums to rPE PP, spot del NWE €/t Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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