In recent years, the recycled plastics market is shifting from low-cost alternatives to high-quality recycling promoted by environmental protection and carbon reduction. Argus interviewed Guo Jiawan, chairman of Guangxi Guolong, and Arnold Wang, founder of Shichai Environment, on the following topics before the Second International Rigid Polyolefin Recycling Summit hosted by Shichai Environment:
- Prospects of China’s recycled plastics exports
- Food contact applications of recycled plastics
- EU’s “mirror-clause” in the Single Use Plastics Directive, etc
How much demand do you see from export markets for your products, what are the key export markets, and for which products and end-use applications (rPET, rHDPE, rPP, Packaging grades)?
Guo: The application of recycled plastics in the packaging market is mainly driven by the demand from international brands. Large brands use environmentally friendly recycled products as a way to actively fulfill their social responsibility and promote the recycling and utilization of waste plastics through their actions. In the Chinese market, international brands have been testing and trialing small batches of recycled plastics over the past two years. In the Southeast Asia, Hong Kong and Macau markets, they have begun to introduce recycled plastic packaging products. Many international brands also have production sites in China, and their export products have started to use recycled plastics. In the personal care sector, they primarily use rHDPE and rPP, while in food packaging, rPET is the main material, all of which must meet food-grade requirements and obtain FDA or EFSA certification.
Most participants are focusing on food contact recycled materials, but China currently does not allow recyclates to be used in food-contact applications. In such a situation, how should Chinese recyclers develop their business? Would pyrolysis be an appropriate approach for Chinese recyclers to look towards?
Wang: Currently, the main applications for high-value products from Chinese PET recycling enterprises are textile fibers, industrial yarns, and other non-food grade uses. Food-grade rPET products can also meet specific needs in personal care products, and other food-grade rPET supplies include exports to Hong Kong and overseas markets.
Pyrolysis is still in the exploratory stage in China, and several commercial projects have been announced this year, but their operation will take some time and still requires market validation. On August 27-28 this year, we will have an International Rigid Polyolefin Recycling Summit in Shanghai, which will include topics related to chemical recycling and pyrolysis. Those who are interested are welcome to follow and participate.
The EU is mulling a “mirror-clause” in the Single Use Plastics Directive which would mean that recyclers from outside the EU that are sending material to the EU to count towards our recycled content targets will be held to the same feedstock, process and environmental targets as European recyclers. How do you expect this to develop and do you see any impact on your business?
Guo: [Complying with EU standards] is not difficult for Guolong Recycled Plastics, because the process technology, production equipment and environmental standards of Guolong are the same as those in Europe, as is the the use of PCR materials.
Over the past few years, Guolong have passed various tests, factory inspections, and production environment assessments required by more than twenty international brand companies, and safely met their requirements. But, if the EU pushes this policy, it might implement certification permits through factory inspections under a case-by-case basis, which might impose certain restrictions on many other recycling enterprises in China.
What is Guolong's future development target, and does Guolong plan to invest in chemical recycling in the near future?
Guo: After ten years of development, Guolong has now established sizeable capacity for producing recyclates for a range of different end-uses (see table). We have successfully implemented a business model that spans the entire industrial chain, encompassing both food-grade and industrial-grade products. Currently the company has no concrete expansion plans for the future.
| Recycling type | Capacity (t/yr) |
| Food-grade rPET | 60,000 |
| Food-grade rHDPE | 20,000 |
| Food-grade rPP | 20,000 |
| Pipe grade recyclates | 80,000 |
| Industrial grade rHDPE | 20,000 |
Do you expect to see a market start to develop for recyclates into the food packaging market in China in the near future (i.e. a change of regulation) and what other regulatory changes in China do you expect that could support the recycling industry?
Wang: China is currently researching the safety of using recycled materials in packaging applications, which includes not only recycled plastics but also recycled metals, such as whether recycled aluminum can be used for cans. The local market is also awaiting the issuance of relevant documents.
Presently, the government has introduced various policies such as the "trade-in" policy and the reverse invoicing policy, which have all promoted the expansion of the recycling industry. These allow recyclers to issue invoices to their waste suppliers (rather than the other way around), to enable recyclers to claim a VAT deduction even when the waste seller they are working with is too small to issue invoices. Government policy may also be directed towards waste classification in the future, this could be the direction for future government policy.
Of course, establishing a complete recycling system requires more implementation strategies and more time to explore development paths and undertake construction.
Spotlight content
Related news
Recycled resin importers caught in tariff uncertainty
Recycled resin importers caught in tariff uncertainty
Houston, 11 April (Argus) — US President Donald Trump's evolving tariff policies have created tremendous uncertainty for US importers of recycled polymers, and constant halts and flip-flopping from the administration have led some to pause their US operations. Multiple importers told Argus that the constantly changing US tariffs on goods have upended business plans, and forced them to pause their US operations for the time being due to uncertainty about the taxes their material will face when it reaches US shores. "You have to have some confidence that conditions will hold in order to import," one trader told Argus . Trump's tariff rollout began on 1 February, when he announced that China would face a 10pc universal tariff, and the US's two largest trading partners, Mexico and Canada, would face 25pc universal tariffs. At the time, market participants speculated that the 25pc tariffs on Canada and Mexico would make operations and sales more expensive for Mexican and Canadian recyclers, particularly those that trade bales or finished resin across the US border. After some negotiations between world leaders, the tariffs on Canada and Mexico were delayed for 30 days, though the 10pc tariff on China went into effect as planned. The 25pc universal tariffs on Canada and Mexico were pushed back again on 6 March, but tariffs on aluminum — a significant competitor to rPET packaging — went into place on 12 March. The tariffs on aluminum have not been rescinded or paused, and the extra cost for imported aluminum as a result of the tariff could incentivize US consumer goods companies to use more PET in their packaging. On 9 April, the US put into place varying reciprocal tariffs on a number of countries that export recycled resin to the US, including India, Malaysia and Vietnam. While rPET and vPET pellets were excluded from the reciprocal tariffs, importers of rPE, rPP and PET waste were not excluded from the tariff. The same day, the reciprocal tariffs were pushed back 90 days in favor of a 10pc universal tariff that excludes Canada and Mexico. China and the US's reciprocal tariffs have escalated into a trade war, and currently material from China faces a 145pc tariff. Since the price is too high for most importers to be willing to pay, in essence all recycled resin imports from China are halted. China is one of the largest buyers of US virgin polyethylene https://direct.argusmedia.com/newsandanalysis/article/2675420), and the current trade war with China has the potential to increase domestic supply as exporters are forced to find new buyers for resin. Increased competition from oversupplied virgin resin could pull down recycled resin pricing. Until some stability in tariff policy returns to the US, traders and importers will continue to turn to other destinations outside the US to sell their recycled resin. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
New tariffs could upend US tallow imports: Correction
New tariffs could upend US tallow imports: Correction
Corrects description of options for avoiding feedstock tariffs in 12th paragraph. Story originally published 3 April. New York, 10 April (Argus) — New US tariffs on nearly all foreign products could deter further imports of beef tallow, a fast-rising biofuel feedstock and food ingredient that had until now largely evaded President Donald Trump's efforts to reshape global trade. Tallow was the most used feedstock for US biomass-based diesel production in January for the first month ever, with consumption by pound rising month to month despite sharp declines in actual biorefining and in use of competing feedstocks. The beef byproduct benefits from US policies, including a new federal tax credit known as "45Z", that offer greater subsidies to fuel derived from waste than fuel derived from first-generation crops. Much of that tallow is sourced domestically, but the US also imported more than 880,000t of tallow last year, up 29pc from just two years earlier. The majority of those imports last year came from Brazil, which until now has faced a small 0.43¢/kg (19.5¢/lb) tariff, and from Australia, which was exempt from any tallow-specific tariffs under a free trade agreement with US. But starting on 5 April, both countries will be subject to at least the new 10pc charge on foreign imports. There are some carveouts from tariffs for certain energy products, but animal fats are not included. Some other major suppliers — like Argentina, Uruguay, and New Zealand — will soon have new tariffs in place too, although tallow from Canada is for now unaffected because it is covered by the US-Mexico-Canada free trade agreement. Brazil tallow shipments to the US totaled around 300,000t in 2024, marking an all-time high, but tallow shipments during the fourth quarter of 2024 fell under the 2023 levels as uncertainty about future tax policy slowed buying interest. Feedstock demand in general in the US has remained muted to start this year because of poor biofuel production margins, and that has extended to global tallow flows. Tallow suppliers in Brazil for instance were already experiencing decreased interest from US producers before tariffs. Brazil tallow prices for export last closed at $1,080/t on 28 March, rising about 4pc year-to-date amid support from the 45Z guidance and aid from Brazil's growing biodiesel industry, which is paying a hefty premium for tallow compared to exports. While the large majority of Brazilian tallow exports end up in the US, Australian suppliers have more flexibility and could send more volume to Singapore instead if tariffs deter US buyers. Export prices out of Australia peaked this year at $1,185/t on 4 March but have since trended lower to last close at $1,050/t on 1 April. In general, market participants say international tallow suppliers would have to drop offers to keep trade flows intact. Other policy shifts affect flows Even as US farm groups clamored for more muscular foreign feedstock limits over much of the last year, tallow had until now largely dodged any significant restrictions. Recent US guidance around 45Z treats all tallow, whether produced in the US or shipped long distances to reach the US, the same. Other foreign feedstocks were treated more harshly, with the same guidance providing no pathway at all for road fuels from foreign used cooking oil and also pinning the carbon intensity of canola oil — largely from Canada — as generally too high to claim any subsidy. But tariffs on major suppliers of tallow to the US, and the threat of additional charges if countries retaliate, could give refiners pause. Demand could rise for domestic animal fats or alternatively for domestic vegetable oils that can also be refined into fuel, especially if retaliatory tariffs cut off global markets for US farm products like soybean oil. There is also risk if Republicans in the Trump administration or Congress reshape rules around 45Z to penalize foreign feedstocks. At the same time, a minimum 10pc charge for tallow outside North America is a more manageable price to pay compared to other feedstocks — including a far-greater collection of charges on Chinese used cooking oil. And if the US sets biofuel blend mandates as high as some oil and farm groups are pushing , strong demand could leave producers with little choice but to continue importing at least some feedstock from abroad to continue making fuel. Not all US renewable diesel producers will be equally impacted by tariffs either. Some tariffs are eligible for drawbacks, meaning that producers could potentially recover tariffs they paid on feedstocks for fuel that is ultimately exported. And multiple biofuel producers are located in foreign-trade zones, a US program that works similarly to the duty drawbacks, and have applied for permission to avoid some tariffs on imported feedstocks for fuel eventually shipped abroad. Jurisdictions like the EU and UK, where sustainable aviation fuel mandates took effect this year, are attractive destinations. And there is still strong demand from the US food sector, with edible tallow prices in Chicago up 18pc so far this year. Trump allies, including his top health official, have pushed tallow as an alternative to seed oils. By Cole Martin and Jamuna Gautam Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
EU exempts most LLDPE imports from retaliatory tariffs
EU exempts most LLDPE imports from retaliatory tariffs
London, 10 April (Argus) — Most linear low density polyethylene (LLDPE) imports will be exempt from EU retaliatory tariffs should the bloc go ahead with countermeasures against the US, according to a draft list of products seen by Argus . The EU has put the retaliatory tariffs on hold for now, after US president Donald Trump announced on Wednesday that he is pausing his planned "reciprocal" tariffs for 90 days. The European Commission has yet to publish the final list of US products that would be subject to any countermeasures, but before Trump's surprise move, the HS code 39014000 was removed. The list was approved by a majority vote of EU member states on Wednesday . Other HS codes of PE grades were included in the draft list and are earmarked for 25pc tariffs. It is now uncertain if and when the EU tariffs might be implemented. Prior to Trump's u-turn, 15 May was the likely date for EU tariffs on US PE imports. But "everything is paused," European Commission trade spokesperson Olof Gill told Argus . LLDPE imports into the EU are categorised under the HS codes 39014000 and 39011010. The former made up just over half of all PE imports to the EU from the US in 2024, while the latter accounted for less than 12pc. The EU's PE imports from the US totalled 1.8mn t last year. Market participants told Argus that the EU will remain dependant on LLDPE imports from the US for specific grades, which include LLDPE butene and metallocene LLDPE. The UK also excluded US-origin LLDPE imports falling under the HS code 390140 from its provisional list of products that could be subject to retaliatory tariffs. By Sam Hashmi and Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Grimaldi buys nine methanol-ready vessels
Grimaldi buys nine methanol-ready vessels
New York, 8 April (Argus) — Italian ferry operator Grimaldi Group has ordered nine methanol fuel-ready vessels that will be delivered by 2030. The company is spending $1.3bn for six vessels that will be operated in the Mediterranean Sea by subsidiary Minoan Lines and three ships that will travel between Finland and Germany in the Baltic Sea. Those vessels will be operated by another subsidiary, Finnish shipping company Finnlines. The ferries will cut CO₂ emissions per transported cargo unit by more than 50pc compared with ships traveling on the same routes, according to Grimaldi Group. The Mediterranean ships will be able to hold up to 2,500 passengers, 300 cars and will have 3,300 freight lane meters. The Baltic ferries will be able to carry 1,100 passengers, 90 cars and have 5,100 freight lane meters. China Merchants Jinling Shipyard is set the deliver the vessels from 2028-2030. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
