PVDF demand to increase chlor-alkali consumption

27/02/26

US rPET demand under sustained pressure: PRC

Houston, 27 February (Argus) — Weak demand for US rPET dominated discussions at the Plastics Recycling Conference this week as buyers pull back, brands extend sustainability timelines, and low-priced imports and virgin PET intensify competition. Market deterioration continues as major recycler Evergreen Recycling, which filed for bankruptcy early last year, shut its plants in Clyde, Ohio, and Albany, New York, this week after its revolving credit lender moved to seize assets, forcing an immediate halt to operations, according to a 24 February Workers Adjustment and Retraining Notification (WARN) notice filed with the Ohio Department of Job and Family Services. Evergeen was one of the largest US rPET suppliers, and the plant closures reduce available recycling capacity. PET recyclers are facing mounting strain as rPET imports continue to displace US material, making it harder for recyclers to compete. "With the five closures, we've estimated about a 16pc capacity reduction, and it's exacerbating the problem," Laura Stewart, executive director of National Association for PET Container Resources (NAPCOR), told Argus in an interview at the conference, held in San Diego, California . "If domestic PET recyclers can't process bales and find strong end markets, it's going to be a challenge to keep the system going." Participants also noted that PET bottle recycling rates remain near 30pc nationwide and vary widely between states. California reclaimers described similar weak conditions, with persistently low prices failing to cover rising labor and processing costs. Several reclaimers said state-level subsidies are needed to maintain operations until demand improves, given the tightening margins across the market. "At the end of the day, you can't run a business on vibes. You've got to make payroll," said Paul Bahou, president of California-based Global Plastics Recyling. Bahou argued that subsidies are needed to ensure that the bottles that are collected can actually be recycled. "Collections is not recycling," Bahou said. "You need to take it [recycleable material] all the way." Bale pricing in California was described as stable but vulnerable to external shifts. Weakened purchasing activity from Mexico, traditionally a major buyer of US PET bales, has removed a key outlet for west coast supply, contributing to the soft demand environment. Conference discussions also highlighted structural limitations in the US system, including uneven access to recycling, competition with low priced virgin PET and limited domestic wash line capacity. The sudden loss of Evergreen's two plants intensified concerns that without stronger, more consistent end-market demand, US recyclers will continue to face financial pressure even as recycled content mandates expand. 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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New 10pc US tariff keeps aromatics arbs shut

New 10pc US tariff keeps aromatics arbs shut

Houston, 25 February (Argus) — The new 10pc tariff on US imports that replaced earlier traiffs ruled unconstitutional by the US Supreme Court keep aromatics arbitrage opportunities in the US closed on paper. The new 10pc tariffs will keep arbitrages closed for benzene, toluene and mixed xylenes (BTX) for chemical use. As of 24 February, US benzene (BZ) stood at a $145/t premium to South Korea BZ, according to Argus data, but with the 10pc tariff rate and freight costs at $72/t, the arbitrage remained closed on paper. Similarly, toluene closed at a $145/t premium and mixed xylenes closed at a $129/t premium to toluene and mixed xylenes in South Korea, but the 10pc tariff and freight costs kept those arbitrages shut. President Donald Trump has threatened to raise the 10pc tariffs — enacted under a different law that allows them to only be in place for 150 days before requiring Congressional approval — to 15pc . The new tariffs continue to provide an exemption for BTX imports for use in the energy sector, which market participants said means BTX used for gasoline blending. This exemption last year allowed for some toluene and mixed xylene imports to arrive in the US without an import tax. In 2025, the US imported 529,000 metric tonnes (t) of benzene, 488,193t of mixed xylenes and 183,379t of toluene, according to US Census Bureau data compiled by Global Trade Tracker. By Jake Caldwell Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

South Korea approves Hyundai Chemical, Lotte merger

South Korea approves Hyundai Chemical, Lotte merger

Singapore, 25 February (Argus) — South Korea's trade, industry and resource ministry (Motir) has approved chemical producers Hyundai Chemical and Lotte Chemical Daesan's restructuring plans along with a support package on 25 February. Hyundai Chemical and Lotte Chemical jointly applied to merge their plants in November 2025 . Hyundai Chemical is a joint venture between Hyundai Oilbank and Lotte Chemical. This is the first project approved under South Korea's government-led rationalisation efforts across the Daesan, Ulsan and Yeosu petrochemical complexes. These efforts were in response to the industry's prolonged losses since 2021, driven by rapid capacity expansions, particularly in China. Under the approved plans, Lotte Chemical will merge its Daesan petrochemical plant with Hyundai Chemical, integrating the naphtha cracking centre (NCC) and downstream units. Parent companies Lotte Chemical and Hyundai Oilbank will invest 600bn Korean won ($420mn) each and will share equal ownership of the newly integrated corporation. The restructuring is expected to take three years, during which Lotte Chemical will suspend its 1.1mn t/yr ethylene cracker in Daesan, and reduce operations of low-profit downstream facilities to curb oversupply in the Daesan petrochemical complex. The newly integrated corporation aims to focus on producing higher value-added and eco-friendly products instead of general-purpose products, Motir said. The South Korean government will also provide a customised support package worth W2.1 trillion, which will include financial, taxation, regulatory, cost structure improvement, employment, and technology development assistance for the firms' restructuring implementation. But the specific financial measures are to be finalised by the Korean Development Bank after consultations with institutional creditors. Other key producers including YNCC, GS Caltex, LG Chem, S-Oil, SKGC, and KPIC also submitted their business restructuring proposals in December 2025, and are under government review. The submitted plans would meet the collective target to reduce the nation's naphtha cracking capacity by 2.7mn-3.7mn t, according to the ministry. But revisions to the plans have been requested, and finalised drafts for restructuring plans for the Yeosu and Ulsan petrochemical complexes are expected by the end of the first quarter of 2026, said market sources close to South Korean cracker operators. By Angie Liew Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

European biochemicals projects stall

European biochemicals projects stall

London, 24 February (Argus) — Growth in European bio-attributed chemical projects has stalled, with projects being pushed back or moved because of cost pressures and weak demand. Various companies planned projects to produce bio-attributed chemicals in Europe, with many originally scheduled to come online before 2028. Current Argus tracking indicate many of these are now likely to come online in 2029-30. Weak demand, cost pressures and, at times, a lack of feedstock are all behind decisions to delay or move projects. The Moller Holding-owned chemical start-up Vioneo is "pulling out" of Europe, and shifting its planned 300,000 t/yr methanol-to-polymers plant to China to enable "a faster route to market", it said in January. The company initially planned to bring a plant online in 2028 in Antwerp, Belgium. Production is now likely to take place in China in 2029-30, with capacity unchanged, the company said. The firm's priority is to bring "fossil-free plastics to market as quickly as possible", and moving to China will allow it to be more competitive on pricing, it said. Bioethylene company Syclus had intended to start production in 2026, with 100,000 t/yr planned for a site in Geleen, the Netherlands. This is now more likely to be completed in 2030. Futerro, which is planning a polylactic acid (PLA) plant in Port Jerome, France, will aim for production at its site to start "no later than 2029", it said, after initial attempts to commercialise by 2027 . The plant will have the capacity to produce up to 75,000 t/yr of PLA derived from plant starches. Blue Circle Olefins aims to bring a 200,000 t/yt methanol-to-olefins (MTO) site in Rotterdam, the Netherlands, online in 2030 . The site will aim to use "sustainable" methanol as a feedstock, and the company signed a long-term offtake agreement with Dutch polypropylene producer Ducor Petrochemicals in November 2025. Finnish forestry group UPM aims to produce bio-monoethylene glycol (bio-MEG), bio-monopropylene glycol (bio-MPG) and industrial sugars at its site in Leuna, Germany, this year . It expects to enter the commercial market with products from Leuna in the first half, with total capacity at the site being 220,000 t/yr of biochemicals. Sustainability has fallen down the list of priorities for some large packaging companies, with cost pressure persisting, particularly in Europe. This week, chemical producer LyondellBasell cut its 2030 target for producing and marketing recycled and renewable-based polymers to 800,000 t/yr from 2mn t/yr. Demand for sustainable plastics anticipated to follow pledges made by some packaged goods companies in 2019-20 has not come to pass , putting pressure on sustainable plastic production. Europe is at a structural disadvantage for fossil-based chemicals, compared with other producing regions with cheaper energy prices and feedstocks, and the story is similar for biochemical demand. A European Bioeconomy Strategy, launched at the end of 2025 , aims to support the use of bio-based plastics and novel materials by 2027 alongside recycling. Currently operational projects for bio-attributed chemicals and bio-attributed plastics total over 1.5mn t/yr of capacity, compared with planned projects in Europe totalling 741,000 t/yr by 2030, Argus projections show as tracked in the Biochemicals and bioplastics project tracker. Regulatory support will be key for projects to succeed, along with factors including proximity to feedstock. Sustainable methanol and ethanol feedstock projects require access to a steady supply of feedstock to compete with fossil-fuel-based projects. "The European bio-plastics industry faces similar hurdles to other European industries — trade hurdles, investment hurdles, competition with other regions in the world," the EU Policy Affairs manager from the European Bioplastics industry working group said in November 2025. "We developed a lot of the bioplastics technology in Europe but the industrialisation can often take place outside of Europe because of lower energy costs and investment opportunities." By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.

ET Fuels secures bunkering buyer for Texas e-methanol