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EU diplomats endorse PPWR deal

  • Spanish Market: Petrochemicals
  • 15/03/24

EU diplomats today endorsed the EU parliament and council of EU member states' compromise agreement on the Packaging and Packaging Waste Regulation (PPWR), which will — among other things — implement mandatory requirements for recycled content across almost all plastic packaging in the single market.

Parliament and member states provisionally agreed to the compromise on 5 March, but it was not agreed at the time by the European Commission. A particular sticking point centred around whether and how imported recyclates would be allowed to count towards the recycled content requirements, with the compromise saying that imports should be "subject to equivalent conditions with regard to emissions and separate collection and sustainability criteria for recycling technologies".

The commission said today it would not stand in the way of an agreement, an unnamed official told Argus. Some EU member states also expressed concerns, but none opposed and only two expressed reservation or had not reached an official position.

European recycling industry association Euric called the outcome of discussions a "significant milestone for the European recycling industry and circular value chains".

"Setting equivalent conditions that guarantee that imported recycled plastics meet equivalent standards to those set in the EU is vital for ensuring European industrial sovereignty and competitiveness", Euric president Olivier Francois said.

But it raised concerns about a clause granting member states freedom to prioritise access to recycled plastics "for use in applications where the distinct quality of the recycled material is preserved or recovered in such a way that it can be recycled further and used in the same way and for a similar application". This "risks disrupting the well-functioning internal market", Euric said.

It said that the focus should instead be on improving recyclability and collection rates to ensure access to recycled plastics. A similar debate has occurred with respect to the Single Use Plastics Directive which mandates recycled content in PET bottles in the EU from next year.

Concerns have also been raised about bans focussing primarily on plastic packaging, with exemptions for other packaging materials. German plastic packaging association IK's director-general Martin Engelmann highlighted single-use packaging for fresh fruit and vegetables. The commission initially proposed a material-neutral ban on these products, but the provisional compromise proposal narrows the ban to only plastic packaging, he said.

Special rules for plastic packaging, for instance, could be challenged as discriminatory in the European Court of Justice, he told Argus last week.

Engelmann also raised concerns this week about 100pc reuse requirement for industrial packaging used to transport goods between one company's sites within the EU, and 40pc reuse requirement for all other industrial packaging. Such a high level of reuse is "impossible to achieve for many packaging formats because, for example, it is not technically possible to reuse stretch film for pallet wrapping", he said.

Following today's meeting of EU diplomats, the provisional deal will be formally adopted first by parliament's environment committee and then the whole parliament. Following formal approval by EU ministers, the text could be on the EU statute books in the summer.


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19/02/25

US housing permits tepid in Jan, PVC outlook mixed

US housing permits tepid in Jan, PVC outlook mixed

Houston, 19 February (Argus) — Stagnation in new housing permits in January suggests restrained US housing construction in early 2025 as annual permit and start figures lag the prior year. Domestic PVC market expectations for 2025 did not improve in January, with participants planning for flat to modest increases in consumption for the year as a whole. PVC demand was largely tied to rebuilding inventories rather than end-uses in construction, according to market participants. Most PVC participants did not expect replenished inventories to be immediately used, with some not budgeting for stronger demand until the second half of the year, an expectation which January's slow start to construction activity seems to support. February demand has already plateaued for some PVC buyers, reaffirming the stagnant expectations for resin consumption in the months ahead. January contract prices settled at 57.5¢/lb, a rollover from the previous month due to buyers' underlying demand concerns, according to Argus . Privately-owned housing permits were at a seasonally-adjusted annual rate of 1.483mn units in January, according to data from the US Census Bureau and the Department for Housing and Urban Development (HUD). While January was up 0.1pc from December's rate, it was 1.7pc lower than the year prior and currently stands below the rates of each of the first three months of 2024. If January's lower annual comparison were to extend through the rest of the first quarter, it could set 2025's pace of new housing construction behind the prior year through the early peak building season that lasts from the spring to early summer, as permits serve as a forward indicator for new housing starts. Single-family permits stood at 996,000 units in January, unchanged from December after the rate increased for three straight months. But while the recent uptrend in single-family permits presents a bright spot in the housing construction outlook, January's rate was still 3.4pc below the previous year. Housing starts in January were at a seasonally-adjusted annual rate of 1.366mn units, 9.8pc below December and 0.7pc lower than January 2024. Single-family starts were at a rate of 993,000 units, 8.4pc below December and 1.8pc lower than the previous year. The stagnant month-to-month and lower annual comparisons for permits could extend declining housing starts in the months ahead. The latest builder sentiment survey for February enhanced the mixed forward view of construction activity brought by January's tepid permit rate. February's reading reversed the small uptick in sentiment registered in January, falling back five points to 42, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). February's result was the lowest level in five months and reflected builders' increasing anxiety about the construction market's outlook. Any reading below 50 denotes a weak market environment. NAHB Chairman Carl Harris said that builders were still hopeful that regulatory reform could spur development, but uncertainty over tariffs and high housing costs was resetting 2025 expectations in February. By Aaron May Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Low water likely to persist at St Louis into March


19/02/25
19/02/25

Low water likely to persist at St Louis into March

Houston, 19 February (Argus) — Low water conditions are expected to persist at St Louis through March, causing barge loading issues for both carriers and shippers. Minimal precipitation coupled with increased ice formation along the harbor decreased water levels to -3.3ft on 19 February at St Louis, according to the National Weather Service (NWS). Some terminals at the harbor have been unable to load and unload barges because of the low water. Carriers expect this to become a larger issue when barges carrying northbound products reach St Louis in March. Although low water has been an issue at the harbor since early January, more barge carriers and shippers began to prepare for slipping water levels when grain barge movement picked up later that month. Some barge carriers have reduced the amount of product placed in barges in order to keep drafts from dipping below 9.6ft this week. Low water levels are anticipated to remain through 4 March, which may hinder barge loadings and increase delays at St Louis. St Louis has received less than an inch of rainfall over the past seven days, according to the NWS. There has been even less precipitation upriver in the Northern Plains over the past week. Larger ice formations have appeared in the harbor on account of freezing conditions. The city of St Louis is under winter weather advisory, and is forecast to receive 1-3in of snow between 18-19 February, according to NWS. By Meghan Yoyotte Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s Mitsubishi Chemical to produce recycled PE, PP


17/02/25
17/02/25

Japan’s Mitsubishi Chemical to produce recycled PE, PP

Tokyo, 17 February (Argus) — Japanese petrochemical producer Mitsubishi Chemical plans to demonstrate production of recycled polyethylene (PE) and polypropylene (PP) at its chemical recycling plant in eastern prefecture Ibaraki from this summer. Mitsubishi Chemical and its five recycled plastic supply chain partners — the city of Kashima in Ibaraki, recycled material producer Refinverse, package manufacturer Toyo Seikan, food supplier Kewpie and Ibaraki-based supermarket operator Kasumi — signed an agreement on 14 February to collaborate in demonstrating recycled plastic production and supply. The firms will collect waste plastics within Ibaraki for processing to produce oil, which will be used to manufacture recycled plastics such as lids of sauce bottles for supply to the market before being collected from end users as waste plastics for chemical recycling. Mitsubishi Chemical will use its chemical recycling plant in the Kashima petrochemical complex in Ibaraki for this circular economy project. The firm completed construction of the plant in November 2024 and has been conducting a trial run to turn waste plastics into regenerated oils. Mitsubishi Chemical's subsidiaries Japan Polyethylene and Japan Polypropylene will be in charge of manufacturing PE and PP from the recycled oil. The demonstration will continue until June 2026. But the timeline for this project and its Kashima chemical recycling plant beyond this, including targets for commercial operations, was not disclosed. Mitsubishi Chemical initially aimed to start commercial operation of the plant, which can process 20,000 t/yr waste plastics to generate around 12,000-16,000 t/yr of regenerated oil, by the April 2023-March 2024 fiscal year. But construction was postponed because of the Covid-19 pandemic and delays in deliveries of equipment amid the Ukraine-Russia conflict. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Biomethanol-methanol diff widens, UK demand ticks up


14/02/25
14/02/25

Biomethanol-methanol diff widens, UK demand ticks up

London, 14 February (Argus) — The spread between biomethanol and conventional methanol is the highest in more than nine months, at $734/t. This is partly driven by falling European methanol prices, with the methanol fob Rotterdam barge quote hitting $348.97/t on 12 February, the lowest since 7 August. Increased imports from the US, and the restart of a 900,000 t/yr capacity European plant have put downward pressure on prices. Biomethanol values ticked higher in recent sessions, tracking gains in the wider biofuels complex after record low values for renewable fuel tickets — tradeable credits generated primarily by the sale of biofuel-blended fuels — in major European demand centres in 2024. European demand for biofuels in 2025 could be supported by a combination of higher mandates for the use of renewables in transport, and by changes to regulations on the carryover of renewable fuels tickets in Germany and in the Netherlands . UK biomethanol prices and demand rise In the UK, the Argus cif biomethanol price has averaged $1,110/t so far in February, a $22/t increase from January and a $60/t rise from the September 2024 average, when prices hit a record low. The price averaged around $1,094/t in February last year. Prices have been in part supported by stronger renewable fuel ticket prices (RTFCs) in the UK recently, according to market participants. UK 2025 non-crop RTFCs averaged 25.45p in the first quarter of 2025 so far, an increase of 1.88p when compared with the previous quarter. Demand picked up in the UK and the wider European market, including from voluntary sectors, at the beginning of the year, participants said. Biomethanol is used as a gasoline blending component in the UK. Consumption in the country in 2024 rose by 45pc on the year but was lower by 7.9pc than in 2022 at 58mn litres, according to the third provisional release of the 2024 Renewable Transport Fuel Obligation statistics. The Argus biomethanol fob Amsterdam-Rotterdam-Antwerp (ARA) netback quote was $1,083/t on 12 February. FuelEU fuels demand The January rollout of the FuelEU Maritime regulations could increase demand for biomethanol in shipping. Ship operators traveling in to, out of and within EU territorial waters must reduce their greenhouse gas (GHG) intensity on a lifecycle basis by 2pc. The reduction rises to 6pc from 2030 and gradually reaches 80pc by 2050. Shipping companies can choose from a range of alternative marine fuels to reduce their emissions. Only dedicated ships can run on methanol alone, but many companies, including Maersk , have ordered dual-fuel vessels that can run on methanol and traditional bunker fuels, along with biofuel blends like B24 — a mix of very-low sulphur fuel oil (VLSFO) and used cooking oil methyl ester (Ucome) biodiesel. International offtake agreements for renewable methanol are also on the rise. Maersk has signed several letters of intent for procurement of biomethanol and e-methanol from producers including Equinor , Proman and OCI Global , and has an agreement with Danish shipping and logistics company Goldwind for 500,000 t/yr from 2024. Biomethanol and e-methanol are likely to be the most competitive and scalable pathways to decarbonisation this decade, Maersk said . While relatively small, Maersk's 'green marine' fuel consumption, which includes biomethanol, increased by 38pc in 2024 to 3,034 GWh. Singaporean container shipping group X-Press Feeders said it will buy biomethanol from OCI's Texas plant starting from 2024. Biomethanol bunker sales in the port of Rotterdam dropped by more than half in the fourth quarter of 2024 compared with the third quarter, to 930t, but sales were 86pc higher than those in the fourth quarter of 2023, according to Port of Rotterdam data . UDB risk to biomethanol imports The European Commission's proposal to exclude automatic certification of biomethane and biomethane-based fuels from the Union Database for Biofuels, if relying on natural gas that has been transported through grids outside the EU, has been slowing some negotiations for 2025 biomethanol imports — particularly from the US — according to market participants. Industry bodies have expressed concerns about implementation of the database, particularly that it will impede the bloc's biomethane development. Burdensome fees, overly strict deadlines, risk of double counting, and a significantly increased number of participants required to enter data will slow market growth, said the European Compost Network and the European Waste Management Association. They recommend mandatory use of the UDB be postponed until 1 January 2026 "at the earliest". By Evelina Lungu Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Indonesia mulls anti-dumping duties on PP co-polymer


14/02/25
14/02/25

Indonesia mulls anti-dumping duties on PP co-polymer

Singapore, 14 February (Argus) — The Indonesian Anti-Dumping Committee (KADI) on 12 February proposed the imposition of anti-dumping duties (ADDs) on the imports of polypropylene (PP) co-polymer from five origins. This follows an 18-month investigation since August 2023 . The proposed ADDs for products under the HS code 39023090 are pending review by the Indonesian trade ministry. Market participants expect an outcome around the second quarter of this year. The affected exporters from South Korea, Singapore, Malaysia, Vietnam and the UAE, as well as several local Indonesian importers have been asked to submit relevant data and provide their responses during the investigation period. Imports from these five countries made up 84pc of Indonesia's PP co-polymer imports in 2022 – the year which is being investigated for dumping activity. KADI has proposed the below ADDs to be imposed on PP co-polymer imports into Indonesia, with rates varying depending on the exporter and country of origin. Exporters from South Korea: 7.17-19.58pc Exporters from Vietnam: 11.4pc Exporters from Malaysia: 13.45-29.01pc Exporters from Singapore: 11.6-13.06pc Exporters from UAE: 21.02pc Exemptions will be given to the imports of selected PP co-polymer grades including random co-polymer, terpolymer, elastomer and block co-polymer with specific parameters, according to an official notice seen by Argus . These grades are likely not produced locally or different from local supplies in terms of specifications and end usage. The ADDs are proposed to be valid for five years upon enforcement. More protectionism measures underway KADI began the PP co-polymer anti-dumping investigation in 2023 prompted by Indonesia's largest petrochemical producer, Chandra Asri, which is also the sole producer of PP co-polymer in the country. The Indonesian Trade Security Committee also began an anti-dumping investigation into imports of linear low-density polyethylene (LLDPE) under the HS code 39011092 in September last year , targeting several LLDPE importers based in Indonesia, but it is unclear how long the investigation will take. Chandra Asri also sought the imposition of anti-dumping measures for the imports of PP homopolymer under the HS code 39021040 into Indonesia in October last year and an investigation is ongoing, according to market sources. Growing PE and PP oversupply globally and weak regional downstream consumption in the past few years have led to higher imports, pressuring regional prices and leading southeast Asian producers to seek measures from local governments to protect their domestic market share. But the imposition of ADDs or any additional safeguard duties is likely to result in higher costs of locally manufactured plastic goods, which will in turn be passed on to consumers. By Yee Ying Ang Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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