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.
Indorama advances circularity at Philippine rPET plant
Indorama advances circularity at Philippine rPET plant
Singapore, 27 July (Argus) — Thai chemical producer Indorama Ventures is advancing circularity at its PETValue Philippines recycling plant through a Zero Waste to Landfill partnership with Philippine firm Republic Cement & Building Materials, according to an official press release on 24 July. The initiative will be implemented through IndoNova, Indorama Ventures' recycling arm, which converts post-consumer polyethylene terephthalate (PET) bottles into food-grade recycled PET (rPET) resin. Under the partnership, PET caps and labels that cannot be recycled into rPET will be recovered by Republic Cement's resource recovery unit, ecoloop, and used as alternative fuel in cement production instead of being sent to a landfill. The project combines PETValue's bottle-to-bottle recycling capability with Republic Cement's resource recovery expertise to boost material recovery and support circular-economy goals, Indorama Ventures said. It demonstrates cross-industry collaboration aimed at reducing landfill dependency in the Philippines. PETValue Philippines, a joint venture between Indorama Ventures and beverage bottling and distribution firm Coca-Cola Europacific Aboitiz Philippines (CCEAP), operates the country's first bottle-to-bottle, food-grade PET recycling plant in Cavite. By Sihan Long Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
EU publishes vehicle recycled content rules
EU publishes vehicle recycled content rules
Brussels, 24 July (Argus) — The EU today published the regulation setting recycling requirements for vehicles and end-of-life vehicle management, which includes the obligation for at least 15pc of recycled plastic in new vehicles from 1 September 2032. This increases from 1 September 2036 to 25pc of plastic recycled by weight from post-consumer waste. The regulation excludes from the weight calculation elastomers from tyres and thermosets, apart from cushioning polyurethane foams. A further provision requires at least 20pc of the target to come from plastics recycled from end-of-life vehicles (ELVs) or from parts removed from used vehicles. The European Parliament approved the rules in June. German centre-right EPP lawmaker Jens Gieseke, who helped draft the measure, said it opens the way for more recycled steel, aluminium and other critical raw materials to be used in new vehicles. By 30 September 2028, the European Commission is obliged to adopt a delegated act establishing a minimum share of steel recycled, and where relevant ferrous scrap, from post-consumer steel waste. The steel target should apply no later than 14 August 2033. Similarly, the commission has to set a minimum target share of recycled aluminium and alloys, also applicable by that date. More broadly, the regulation sets a 1 September 2032 target for EU type-approved vehicles to be constructed so they are "reusable or recyclable" to a minimum of 85pc by mass. The commission has to assess by 31 December 2033 the feasibility of targets to increase the use of biobased feedstock in vehicles' plastics. The law enters into force in 20 days, with provisions generally applying from 1 September 2028. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Petcore conference highlights challenges for trays
Petcore conference highlights challenges for trays
London, 26 June (Argus) — The prospect of bans on packaging that is not recycled at scale mean the PET tray recycling industry is in a race against time to boost capacity, but it may also be discouraging investors from a potentially shrinking market. Participants at last week's Petcore Europe Thermoforms Conference in Valencia, Spain, expressed mixed views, with optimism about potential developments tempered by the need to keep abreast of a host of fast-changing variables, including recycler closures, virgin prices and legislative changes. Presenters highlighted the adverse effects of the Iran war on the recycling sector and the extra pressure it has brought to bear on the tray-to-tray market. Rising costs, shrinking industrial margins and declining plastics demand are creating strain and hindering development of the tray-to-tray segment this year. Participants also drew attention to Europe's trade deficit with the rest of the world. As Europe consumes more goods not manufactured locally, recyclers face increased risk from imports taking market share from cost-saving end-use applications such as thermoforming, where certification requirements are often less stringent than in the bottle-to-bottle market. This dynamic is adding further pressure to the market. Delegates heard that Europe cannot compete on cost of collection and recycling, raising concerns that the European circularity market could collapse under these pressures, leaving no local outlet for European waste at scale. In addition to the broader challenges facing recycling, the tray market faces its own specific economic hurdles. Jose-Antonio Alarcon, technical manager of the Petcore thermoforming working group, explained that tray recyclers face a steeper cost curve because PET trays are structurally more complex to process than bottles. While higher virgin material costs are currently supporting the entire recycled PET market, any optimism from a slight pick-up in demand is offset by recyclers' frustration at their inability to counter the effects of rising feedstock and production costs on margins. While upcoming legislation offers some support for the industry's outlook, participants emphasised that unresolved issues with the new rules are limiting progress. Guidelines are often delayed and vague, and economic institutions lack visibility and clarity. The absence of harmonised and simplified legislation is a significant challenge, affecting the investment landscape. Devil in the legislative detail Details of the EU's proposed Packaging and Packaging Waste Regulation (PPWR) were discussed at the event. Under Annex V, Article 25, single-use plastic fresh-produce packaging weighing less than 1.5 kg — such as strawberry punnets, mushroom trays, and tomato clamshells — will be banned from January 2030. From 2030, all packaging must be recyclable and will be graded on a performance scale, at A, B and C. Packaging with a recyclability rate below 70pc will not be considered recyclable and may face restrictions. All contact-sensitive PET packaging must also contain a minimum of 30pc recycled content. There is concern the tray-to-tray industry is underprepared for these changes, which presenters stressed are less than four years away. Businesses will require more certification, and significant progress in the tray market is needed to meet recyclability and recycled content targets. The main concerns are the Annex V tray ban and the recyclability target. The legislation aims to reduce unnecessary packaging and, according to presenters, is currently targeting tray packaging with holes — something that is expected to have a significant impact on PET tray usage and tray-to-tray demand. Further clarity on guidelines from the European Commission is expected in February 2027. Participants expressed concern that thermoforms could be grouped with non-circular plastic categories, given current collection and recycling rates. They also highlighted the problem of increased food waste resulting from reduced tray packaging for perishable products such as fruit and vegetables. The consensus at the event was that tray collection must improve. Spanish market developments In Spain, delegates heard that PET trays currently account for 20–38pc of PET bale composition. The SDDR (mandatory deposit return system) is planned for November 2026 but is expected to be delayed, with retailers requesting a postponement. Current estimates suggest that yellow bin collections could contain up to 50pc PET trays when the DRS is fully operational because the proportion of bottles is likely to decrease. Tray recyclers are keen to capture tray material more effectively through improved sorting. The Amorebieta, Biscay, pilot programme is working on additional separation of trays and is expected to be scaled up and rolled out across the country to at least 97 plants, gradually developing the market, although progress is slow. Ecoembes told delegates that the pilot programme yielded 160 tonnes of bottles and 110 tonnes of PET trays in the last monthly tender. The next phase of the project is to expand to Catalonia sorting plants by 2028. Recyclers fear investment gap Participants agreed that tray-to-tray sorting and recycling capacity must improve. However, a lack of regulatory clarity and the prospect of a ban are impacting investment. This concern was echoed by Alarcon in an interview with Argus before the event. There was discussion about the possibility of an exemption for trays from the PPWR ban or restrictions but further clarity on the scope and details of any restrictions or requirements is needed quickly to ensure economic confidence for investment. The latest understanding presented at the conference was that sealed trays are out of scope for restrictions, but unsealed trays with holes are at risk and awaiting further detail from the European Food Safety Authority (EFSA). Another meeting is scheduled for July with the European Commission cabinet. Overall, participants remained hopeful for the future development of the tray industry, but against a challenging market backdrop, optimism was limited. Participants are pushing for stronger advocacy, faster regularity clarity, less legislative complexity and an alignment of rules with operational realities. There is concern that the industry is poised to expand but may run out of time as potential PPWR restrictions approach, while participants continue to face significant market headwinds. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US PET collection falls, rPET demand weakens: NAPCOR
US PET collection falls, rPET demand weakens: NAPCOR
Houston, 12 June (Argus) — US polyethylene terephthalate (PET) bottle collection rates fell in 2024 while demand for recycled material weakened, despite gains in recovery and processing capacity, according to the National Association for PET Container Resources (NAPCOR). The US PET bottle collection rate declined to 30.2pc in 2024 after falling from 32.5pc a year earlier, even as the total volume of bottles available for recycling rose by 3.5pc to about 6mn lb, NAPCOR said in its 2024 PET Recycling Report . At the same time, total consumption of recycled PET (rPET) across US and Canadian end markets dropped, highlighting weaker demand for recycled material. The data show a growing imbalance in the PET recycling market, where supply and recovery are improving but end-market demand is failing to keep pace. Supply expands as rPET demand falters On the supply side, PET availability continued to expand. Imports of virgin and recycled PET for bottle applications increased by 8pc in 2024, while US reclaimers processed 1.97bn lb of material, up by 1.5pc from the previous year. Thermoform recovery recorded the most significant growth. Total recovered PET thermoforms in the US and Canada jumped by 52pc to 264mn lb, driven largely by improved identification of thermoform material in bottle bales and advances in sorting and reclamation technologies. But these gains were not matched by stronger demand for recycled content. Post-consumer recycled (PCR) content use in PET thermoforms fell sharply, dropping to around 12pc from 18pc a year earlier. The decline reflects shifting end-market dynamics and economic pressures. Growth in food and foodservice packaging, which typically uses lower levels of recycled content, diluted overall PCR rates even as the mix of virgin and recycled inputs remained largely unchanged, NAPCOR said. High prices curb recycled PET demand Pricing dynamics played a central role. The premium for rPET over virgin PET widened significantly, reaching as much as 38pc on the US east coast, compared with around 11pc at the start of 2024. "There was an increasing premium for recycled PET over the course of 2024… At its highest point, there was a 38pc premium for east coast rPET pellet over virgin," NAPCOR said in an emailed response to Argus. "This means the cost pressure for recycled-content usage ramped up through most of the year, which certainly would have impacted some converters' decisions." Higher domestic rPET prices also encouraged substitution toward lower-cost alternatives. Imports of rPET rose to a record 395mn lb, accounting for 23pc of total consumption, while some manufacturers shifted back to virgin resin. Although thermoform recovery increased sharply, most of this material continues to be processed alongside bottles rather than recycled back into thermoform packaging. The largest end market for recycled PET remains food and beverage bottles, limiting closed-loop systems for thermoforms. Technical barriers are no longer the primary constraint; economics remains the key challenge. "Meeting food-contact requirements is not difficult if the right technology and machinery are used… The biggest barrier to thermoform-to-thermoform recycling for food-contact applications may be cost," NAPCOR said. Looking ahead, NAPCOR pointed to policy as a potential driver of stronger demand. While several US states have introduced recycled content mandates, most do not apply to non-bottle rigid packaging such as thermoforms. New Jersey remains an exception, with a 10pc recycled content requirement for non-food rigid plastic packaging that will expand to include food-contact applications in 2027. "Because brands and converters can back away from voluntary commitments… mandates or eco-modulation incentives through EPR programs would be promising avenues to boost PCR usage in thermoforms," NAPCOR said. Absent stronger policy support or more favorable pricing dynamics, continued gains in PET recovery may not translate into higher recycled content use, reinforcing structural imbalances across the recycling value chain. 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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