Latest market news

EU plastics law clears parliament with mixed reaction

  • : Petrochemicals
  • 24/04/24

The European Parliament has adopted the EU's Packaging and Packaging Waste Regulation (PPWR) that requires reductions in plastics and other packaging, ahead of formal approval by the bloc's ministers.

The regulation had been provisionally agreed between EU diplomats in March.

The regulation, adopted with 476 votes in favor and 129 opposed, obliges packaging reductions of 5pc by 2030, 10pc by 2035 and 15pc by 2040. EU countries must specifically cut plastic packaging waste.

Starting on 1 January 2030, the regulation also bans single-use plastic packaging for unprocessed fresh fruit and vegetables, and for foods and beverages filled and consumed in cafés and restaurants. Other bans from 2030 affect individual portions for condiments, sauces, creamers and sugar, as well as very lightweight plastic carrier bags.

The rules require all packaging to be recyclable, with exemptions for lightweight wood, cork, textile, rubber, ceramic, porcelain and wax.

Plastics Europe's managing director Virginia Janssens said the adopted text is "ambitious" and needs practical implementation. "We need a careful review of the impact of the reuse targets and affected formats, especially in transport packaging," Janssens said. The plastics manufacturers' association said a lack of material neutrality undermined the aims of the PPWR to reduce packaging waste.

European paper industry association Cepi pointed to a phase out of "fossil-based materials" and called for timely compliance with the new regulation. Cepi urged EU member states to endorse the agreement when voting.

European farmers association Copa-Cogeca noted "discriminatory" treatment for the fruit and vegetable sector, adding that the European Commission, EU member states and parliament have so far "ignored" arguments to amend the text to exempt single-use packaging for fresh fruit and vegetables.

EU ministers also voted on an objection approved last week by the EU environment committee regarding mass balance accounting rules, which did not get the majority needed to be confirmed.


Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

24/09/09

Methanex to acquire OCI’s methanol business for $2bn

Methanex to acquire OCI’s methanol business for $2bn

Houston, 9 September (Argus) — Methanol producer Methanex announced Sunday that it will acquire OCI's international methanol business for $2.05bn. As part of the transaction, Methanex will acquire four primary assets, including a 910,000 t/yr methanol facility and 340,000 t/yr ammonia facility in Beaumont, Texas. Methanex will acquire OCI's 50pc interest in the 1.7m t/yr Natgasoline methanol plant in Beaumont. The acquisition of Natgasoline is subject to a legal proceeding between OCI and Proman, the other 50pc holder in Natgasoline, over certain shareholder rights. If the dispute is not resolved within a certain period, Methanex has the option to exclude the purchase of the Natgasoline joint venture and proceed with the rest of the transaction. The transaction also includes OCI HyFuels, a producer of green methanol products such as biomethanol and bio-MTBE, and trading and distribution capabilities for renewable natural gas (RNG) and ethanol. Additionally, Methanex will acquire an idled 1m t/yr methanol facility in Delfzijl, Netherlands. The purchase price includes $1.15 billion in cash, the issuance of 9.9 million shares of Methanex valued at $450 million and the assumption of about $450 million in debt and leases. The acquisition of fertilizer producer OCI began over a year ago, according to OCI officials. "We identified Methanex as the natural owner of OCI Methanol at the outset of our strategic process, which we initiated in the spring of 2023," OCI executive chairman Nassef Sawiris said. This acquisition moves Methanex, primarily a methanol maker, into the ammonia sector. "From an operating perspective, we have a shared culture of safety and operational excellence, and we expect the OCI team will help us build new skills in ammonia while enhancing our capabilities in the evolving business of low carbon methanol production and marketing," Methanex CEO Rich Sumner said. The deal is expected to close in the first half of 2025. The transaction has been approved by the boards of directors of the two companies and is now awaiting certain regulatory approvals and other closing conditions. The transaction is also subject to approval by a simple majority of the shareholders of OCI. The largest shareholder of OCI, has signed an agreement to vote for the transaction. By Steven McGinn Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

US August ethylene contract settles higher


24/09/04
24/09/04

US August ethylene contract settles higher

Houston, 4 September (Argus) — The US August ethylene contract price settled at 33¢/lb, the highest recorded settlement since November 2022. The contract price rose by 0.75¢/lb from the prior month, or 2.33pc, which marks a fifth consecutive monthly increase. An uptick in the contract price was supported by higher US spot ethylene prices. Maintenance at Enterprise Products Partners' (EPC) cavern in Mont Belvieu, Texas, coupled with lower inventories in the second quarter, placed upward pressure on spot prices this summer. US spot EPC ethylene averaged higher month-over-month. The August spot average for front-month ethylene increased to 30¢/lb from 26.59¢/lb in July. On 3 September, Argus assessed US spot EPC ethylene at 30.31¢/lb. The US ethylene contract price is a 50/50 formula accounting for ethylene spot prices and ethane feedstock costs. The average of spot ethane prices was lower in August at 13.95¢/USG, down from 15.43¢/USG in July. Prompt month EPC ethane traded higher in September alongside natural gas. By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Bridgestone, BB&G, Versalis partner on tire recycling


24/09/03
24/09/03

Bridgestone, BB&G, Versalis partner on tire recycling

Houston, 3 September (Argus) — Tire manufacturer Bridgestone has signed a joint agreement with BB&G and Versalis to develop a closed-loop tire supply chain. The companies agreed to collaborate on research and technical solutions to scale end-of-life tire (ELT) recycling for the production of new tires. In doing so, they aim to advance pyrolysis technology and market circular polymers for tires. This is part of a push to improve sustainability within the synthetic rubber sector. Technology firm BB&G transforms ELTs into renewable raw products using a thermal conversion process of pyrolysis. It inaugurated a commercial tire pyrolysis oil (TPO) unit, located in Fatima, Portugal, in July 2024. Chemical company Versalis will incorporate BB&G's pyrolysis oil over the next few months into expanding its range of products — including elastomers and polymers — derived from chemical recycling and bio-based feedstocks. With that, Bridgestone in Europe, the Middle East and Africa (EMEA) looks to employ these circular elastomers into manufacturing new tires. The first batch of tires is anticipated in early 2025. "At Bridgestone, we have set a goal of working with 100pc sustainable materials by 2050, and recycling and reusing products is an important part of this," said Bridgestone's EMEA president Laurent Dartoux, which also supports initiatives "on co-creating new and environmentally responsible ways to maximize the complete lifecycle of our tires." By Joshua Himelfarb Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Construction spending slips in July, PVC softens


24/09/03
24/09/03

Construction spending slips in July, PVC softens

Houston, 3 September (Argus) — Total US construction spending declined in July, driven by a decrease in private investment, according to the latest data from the US Census Bureau. Polyvinyl chloride (PVC) demand softened through July and into August after growing through the first half of the year. Market participants have said the housing market in particular has not supported strong growth in PVC demand through the summer, even as public spending on infrastructure has blunted some of the weakness in the wider market. US contract prices rose by 1¢/lb in July to 61.5¢/lb, despite producers initially having sought a 2¢/lb increase. This was largely due to production disruptions from Hurricane Beryl in mid-July combined with rising feedstock costs for ethylene. PVC demand has eroded slightly more in August while production has recovered. Total spending fell to the lowest seasonally adjusted annual rate since March. Total private construction spending decreased in July while public spending increased. The 0.4pc loss in private residential spending undid the gains made in June. Total manufacturing spending ticked up month to month, while private commercial extended its decline. Highway and street construction extended declines, but remained up year over year. Public water and sewage spending ticked upwards on a monthly and yearly basis. By Aaron May and Cole Sullivan US construction spending $mn 24-Jul 24-Jun +/-% 23-Jul +/-% Total Spending 2,162,683.0 2,168,990.0 -0.3 2,027,412.0 6.7 Total Private 1,678,713.0 1,685,471.0 -0.4 1,579,640.0 6.3 Private Residential 941,559.0 945,269.0 -0.4 874,187.0 7.7 Private Manufacturing 236,074.0 236,106.0 0.0 196,357.0 20.2 Private Commercial 119,359.0 119,784.0 -0.4 140,100.0 -14.8 Total Public 483,971.0 483,519.0 0.1 447,772.0 8.1 Public Water/Sewage 75,109.0 74,350.0 1.0 66,105.0 13.6 Public Highway/Road 140,929.0 142,030.0 -0.8 135,957.0 3.7 US Census Bureau Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

California passes total retail polyethylene bag ban


24/08/30
24/08/30

California passes total retail polyethylene bag ban

Houston, 30 August (Argus) — California lawmakers have passed a complete ban on polyethylene (PE) retail plastic bags, closing a legal loophole that previously allowed thick reusable PE bags made of 40pc recycled plastic. Both the California Senate and Assembly approved the measure, which goes to governor Gavin Newsom (D) for a signature. If he does sign it, the bill would go into effect on 1 January 2026. Flexible plastics reclaimers and a newly formed advocacy group called the Responsible Recycling Alliance (RRA) opposed the bill, citing a higher carbon footprint for paper and reusable bags. A 2014 California law allowed for reusable PE bags in retail stores if they had at least 40pc post-consumer recycled resin. This helped create significant demand for post-consumer recycled flexible PE resin. But the 40pc rule received scrutiny after reports showed that the thicker bags were unrecyclable, despite their labeling. CalRecycle reported that the volume of merchandise bags discarded grew to 231,000 metric tonnes by 2022, a 47pc increase from 2014, when the original plastic bag ban was passed. "It's time for us to get rid of these plastic bags and continue to move forward with a more pollution-free environment," senator Catherine Blakespear (D) said following passage of the bill in the state Assembly. The RRA, the group founded by reclaimers Merlin Plastics, PreZero and EFS Plastics, had argued unsuccessfully that the bags should instead be included in California's extended producer responsibility program. Woven polypropylene (PP) bags were not affected by California's latest bag ban. But a study by market research company The Freedonia Group funded by the American Recyclable Bag Alliance showed that banning PE bags and enforcing reusable PP bags caused virgin plastics usage for bags to rise by 300pc after the ban's passage in 2022. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more