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
Sabic expects petchem project delays in the Middle East
Sabic expects petchem project delays in the Middle East
Mumbai, 27 October (Argus) — Saudi petrochemical producer Sabic expects delays in the startup of new projects in the Middle East because of ongoing supply chain disruptions caused by the US-Iran conflict, it said on 26 October. "We expect delays in the new projects, especially in the Middle East, but no cancellation," Sabic chief financial officer Salah Al-Hareky said. Rapid petrochemical capacity expansions in China have intensified price competition this decade, and several producers have begun to rationalise their capacities or modify feedstock slates to grapple with oversupply and geopolitical uncertainty. The current upside in petrochemical prices would likely recede, according to Al-Hareky. "Is it six months, one year? We do not know, but it is temporary," he said. Sabic's Fujian complex in China remains on track for startup in the fourth quarter, it said. The firm also reported a 24pc increase in third-quarter petrochemicals sales volumes from the second quarter to 6.71mn t. Several key projects are scheduled to start operations in the Middle East in the coming years. The new capacity includes Borouge 4 in the UAE, which would add 1.4mn t/yr of production to the UAE-based producer's existing portfolio. Borouge would ramp up operations throughout the year after initial startup of production, it said in April. Satorp, a joint venture between Saudi state-controlled Aramco and TotalEnergies, would add another 1.7 mn t/yr of ethylene capacity in Saudi Arabia. Commercial operations at the project were expected to begin in 2027. Chevron Phillips Chemical and state-owned QatarEnergy are also investing in an ethylene cracker with a capacity of 2.08 mn t/yr. The project was initially expected to be completed by 2026. The companies did not immediately respond to Argus ' requests for comment on the startup dates. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU lawmakers push for swift packaging deal
EU lawmakers push for swift packaging deal
Brussels, 26 October (Argus) — The European parliament and EU member states must quickly agree on easing extended producer responsibility (EPR) obligations for small and online businesses under the bloc's Packaging and Packaging Waste Regulation (PPWR), German centre-right lawmakers said. The EU parliament and governments must now agree a final legal text before any changes to EPR obligations can enter into force. The parliament adopted a proposed amendment to the PPWR on 20 October that would suspend EPR obligations for "microenterprises or small enterprises" until 1 January 2035, or until the application of an EU law establishing a horizontal EPR framework. The European Commission has also proposed suspending EPR obligations for batteries and waste batteries. "Small firms can no longer sell their products in other EU member states because of disproportionate rules and high costs," said Peter Liese, environment policy spokesperson for the European People's Party (EPP), the parliament's largest political group. Liese said the parliament and EU member states have now both laid the groundwork for a solution. The PPWR requires companies making cross-border sales in other EU member states to appoint an authorised representative for EPR compliance. Liese said the requirement has made selling into other EU countries economically "hardly possible" for some businesses. EU member states agreed on 21 October to suspend the EPR requirement until 1 January 2032 for producers placing less than 1t of packaging on the market annually in a given member state. As in the commission's proposal, the suspension would apply to all EU producers, regardless of size, as well as battery producers. Oliver Schenk, an EPP member of the parliament's environment committee, said the council's 1t threshold may not go far enough, noting that Germany had proposed a threshold of 10t. "The differing positions of the council and parliament must not now lead to a new blockage," Schenk said. An EU official expects negotiations on the final legal text to begin later in November. Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Sabic’s 3Q petrochemicals sales up by 24pc from 2Q
Sabic’s 3Q petrochemicals sales up by 24pc from 2Q
Amsterdam, 26 October (Argus) — Saudi Basic Industries Corporation (Sabic) reported a 24pc increase in third-quarter petrochemicals sales volumes from the second quarter to 6.71mn t in the third quarter. Despite a challenging operating environment, the firm boosted overall sales volumes to around 80pc of levels before the start of the Middle East crisis in late February, it said today. Sabic's petrochemicals segment includes two categories — chemicals, including olefins, methanol, aromatics, glycols, carbon dioxide and methyl tertiary butyl ether (MTBE), and polymers, comprising polyethylene (PE), polypropylene (PP), polycarbonate (PC), speciality products and other polymers. Sabic leveraged alternative shipping routes after logistical disruptions in the strait of Hormuz constrained trade flows, increasing polymer volumes shipped from Al Jubail to Saudi Arabia's west coast ports by more than 230pc compared with pre-crisis levels for onward shipment to destination markets. The firm also took advantage of safe passage through the strait of Hormuz whenever available and reported a 38pc quarter-on-quarter increase in vessel liftings. Petrochemicals sales prices fell by 10pc in the third quarter, primarily driven by lower polymer values that eased from elevated levels in the second quarter. Prices remained above 2024 and 2025 levels, but the firm expects petrochemicals markets to return to the lower part of the cycle once the Middle East crisis ends and regional production returns to normal rates. Global petrochemical capacity continues to outpace demand, sustaining pressure on industry operating rates and margins and leading to rationalisation of disadvantaged assets across the industry. Sabic remains focused on addressing structural industry challenges through portfolio optimisation and selective growth. The firm completed the divestment of its engineering thermoplastics business in the Americas and Europe in the third quarter and remains on track to close the sale of its European petrochemicals business in the fourth quarter. Sabic is focusing on key growth regions and value chains, with its Fujian Petrochemical complex in southern China on track for full start-up during the fourth quarter after three core units — which mainly produce PE and PP — successfully completed trial runs on the first attempt in the third quarter. The firm also announced a final investment decision to build an integrated 1.2mn t/yr ammonia and 2.6mn t/yr urea complex in Jubail , which will increase its urea capacity by 54pc by the end of 2030. Sabic's subsidiary secured feedstock allocation to develop an additional 1.8mn t/yr of methanol production capacity in Jubail. Sabic's revenue increased by 14pc in the third quarter from the second quarter to 28.17bn riyals ($7.51bn), with a 30pc increase in sales volumes offsetting a 13pc decline in sales prices across products. By Liana Minihan Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Indian petrochemical firms eye specialty push
Indian petrochemical firms eye specialty push
Mumbai, 26 October (Argus) — Indian petrochemical producers are exploring specialty chemical investments and seeking technology tie-ups with foreign companies to reduce reliance on imports, industry participants said at the recently held India Chem 2026 conference in Mumbai. "We are evaluating many specialty products. Apart from the commodity plastics, there is a huge deficiency in specialty chemicals in India, like engineering plastics," Indian Oil executive director Sumit Basu said on 23 October at a roundtable attended by executives and government officials from the petrochemicals sector. "When the [free trade agreements] are being signed, the companies which have the [production] technology may be roped in to invest in India through formal joint ventures," Basu added. He pointed to partnerships between Chinese and global firms that have rapidly lifted China's chemical output, despite the country facing similar feedstock constraints. India relies on imports for several chemicals, exposing it to supply-chain shocks from geopolitical crises such as the Iran war. The conflict upended global petrochemical markets to the point that New Delhi waived import duties on more than 40 chemicals from April to mid-July. Technology transfer would be taken up with the commerce department as part of trade negotiations, said G Venkatesh, joint secretary of the department of chemicals and petrochemicals (DCPC). Industry officials identified feedstock constraints and project viability as the main barriers to setting up new units. Indian integrated refiners consume most of their monomer output in downstream plants, making standalone units that supply monomers such as propylene commercially risky. But with several Indian producers expanding their capacities, there is willingness to supply more of the feedstock to smaller producers. "We would certainly be evaluating opportunities to share some of our feedstock," said Atul Khanwalkar, head of petrochemicals at Bharat Petroleum (BPCL), which is building a 1.2mn t/yr steam cracker at Bina in the central Indian state of Madhya Pradesh, alongside downstream polyolefin production units. Several state-controlled petrochemical firms also urged New Delhi to streamline approvals for joint ventures and reduce delays in setting up joint ventures. National feedstock policy In response to supply uncertainty caused by the Iran war, India plans to create a national petrochemical feedstock policy, DCPC secretary Tejveer Singh said at the conference. "I think this is something we would like to sit with the industry and the Chemicals & Petrochemicals Manufacturers' association (CPMA) and see how we can work on it," he said. Disruptions from the war prompted several feedstock conservation measures in India, including diverting propane, butane and propylene to liquefied petroleum gas production. The curbs hit around 80pc of India's polypropylene output, according to Argus estimates. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.



