Global brands drive China recycled packaging demand
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
UK anti-dumping probe into US LLDPE imports: Update
UK anti-dumping probe into US LLDPE imports: Update
Adds detail on Ineos complaint London, 1 July (Argus) — The UK's Trade Remedies Authority (TRA) has initiated an anti-dumping investigation into imports of linear low-density polyethylene (LLDPE) from the US following a complaint filed by Ineos Olefins and Polymers UK, the country's sole producer of the grade. The investigation, which began today, 1 July, will assess Ineos' claims that US-origin LLDPE has been sold in the UK at dumped prices, injuring the domestic industry. Ineos said US export prices were lower than normal value and that the resulting imports hurt the UK market through lower sales, lost market share, weaker prices, reduced profitability, withdrawn investment and fewer jobs. The dumping probe covers 1 January-31 December 2025, while the injury assessment spans 1 January 2022-31 December 2025. The UK imported 102,400t of LLDPE from the US in 2025, under the HS codes 39011010 and 390140, according to Global Trade Tracker data. This was up from 81,100t in 2024 and 50,000t in 2023. "Not only are US exporting producers of LLDPE undercutting UK pricing, but they are consistently and steadily exerting downward pressure on pricing, encouraging a race to the bottom, while prices in the US domestic market remain relatively stable, and, on average, at a 40–50pc higher price point than in the UK market", Ineos said in its application. Ineos's UK LLDPE plant could not operate continuously in 2025, instead relying on limited runs equivalent to 25-40pc operating rates, Ineos said. The company announced a support package from the UK government valued at £120mn ($159.4mn) in December 2025 that has provided "basic funding to continue operations for the next five years", but failure to take action could threaten the future of its LLDPE plant and the associated steam cracker in Grangemouth, which supplies ethylene processed from imported US ethane and gases from the North Sea, the company said. LLDPE is widely used in packaging films and other flexible plastic applications. Interested parties have until 16 July to register for the investigation. The authority plans to issue questionnaires on 24 July, with responses due by 24 August. Verification work is scheduled for September and October. The TRA said it may propose provisional measures between October and December if it finds enough evidence of dumping and injury. Such measures could require importers to provide guarantees against potential anti-dumping duty. The TRA expects to publish preliminary findings in February 2027 and make a final recommendation to the secretary of state for business and trade in June 2027. By Yohanna Pinheiro Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
UK opens anti-dumping probe into US LLDPE imports
UK opens anti-dumping probe into US LLDPE imports
London, 1 July (Argus) — The UK's Trade Remedies Authority (TRA) has initiated an anti-dumping investigation into imports of linear low-density polyethylene (LLDPE) from the US following a complaint filed by Ineos Olefins & Polymers UK, the country's sole producer of the grade. The investigation, which began on 1 July, will assess Ineos' claims that US-origin LLDPE has been sold in the UK at dumped prices, injuring the domestic industry. Ineos said US export prices were lower than normal value and that the resulting imports hurt the UK market through lower sales, lost market share, weaker prices, reduced profitability, withdrawn investment and fewer jobs. The dumping probe covers 1 January-31 December 2025, while the injury assessment spans 1 January 2022-31 December 2025. The UK imported 102,400t of LLDPE from the US in 2025, under the HS codes 39011010 and 390140, according to Global Trade Tracker data. This was up from 81,100t in 2024 and 50,000t in 2023. LLDPE is widely used in packaging films and other flexible plastic applications. Interested parties have until 16 July to register for the investigation. The authority plans to issue questionnaires on 24 July, with responses due by 24 August. Verification work is scheduled for September and October. The TRA said it may propose provisional measures between October and December if it finds enough evidence of dumping and injury. Such measures could require importers to provide guarantees against potential anti-dumping duty. The TRA expects to publish preliminary findings in February 2027 and make a final recommendation to the secretary of state for business and trade in June 2027. By Yohanna Pinheiro Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
HPCL on track for 4Q start of Rajasthan petchem units
HPCL on track for 4Q start of Rajasthan petchem units
Mumbai, 1 July (Argus) — Indian state-owned refiner Hindustan Petroleum (HPCL) remains on course to start its petrochemicals unit at its new Pachpadra refinery in the western state of Rajasthan during the fourth quarter of 2026. The new refinery — HPCL Rajasthan Refinery (HRRL) — was expected to start in April but was delayed till 4 July after a fire broke out in the heat exchangers stack in April. The company remains confident about bringing on some of the capacity online by November or December, Saugata Chaudhuri, head of petrochemicals, HPCL, told Argus on the sidelines of the Injection, Blow Moulding & PET International Business Summit & Exhibition in Mumbai on 30 June. "The fire was localized, and the best part was we could arrest the issues very quickly. So, we could reposition ourselves and inaugurate the refinery soon," Chaudhuri said. Focus will now shift to the timely startup of the petrochemical units, he added. The facility will house a 1mn t/yr polyethylene (PE) plant, with two linear-low density polyethylene (LLDPE)/high-density polyethylene (HDPE) swing production lines of 500,000 t/yr each. An integrated 1.2mn t/yr dual-feed cracker will supply the ethylene to the PE plants. The PE plant will also produce metallocene-grade LLDPE and HDPE pipe PE100 grade. The complex will also produce polypropylene (PP) with a capacity of 1mn t/yr. India is import-dependant on several grades of PE, PP. The specialised grades will help substitute imports, helping converters during critical times of geopolitical uncertainties and supply disruptions, Chaudhuri said. India's PE imports in April in 2026 slumped to the lowest level in four years due to the effective closure of the strait of Hormuz. Exports from the UAE — traditionally India's largest PE supplier — led the decline, falling by 79pc between March and April. Argus -assessed PP raffia prices at $1,100-1,140/t cfr India for the week to 26 June, down from $1,350-1,430/t cfr India on 10 April. LLDPE prices were assessed at $1,090-1,150/t cfr India for the week to 26 June, compared with $1,430-1,500/t cfr India on 10 April. Eyes on exports HPCL also remains confident on potential export opportunities for some of the specialised products. "We are keenly looking at European markets because some northeast Asian players are active there," Chaudhuri said. "Even in West Africa there's a lot of appetite and there are some Indian players who are active there, so we want to leverage that relationship," he added. South Korea exported 555,000t of PP to the 27 EU member countries, excluding the UK, in 2025, while India's exports totalled at just 19,670t, according to data from Global Trade Tracker. India and the EU are likely to finalize and sign a free trade agreement by the end of the year, European Commission President Ursula von der Leyen said last month. By Sourasis Bose Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
US PE export prices approach pre-Iran war levels
US PE export prices approach pre-Iran war levels
Houston, 26 June (Argus) — US polyethylene (PE) export prices fell sharply for the 10th consecutive week to 26 June, taking prices for most grades almost back to pre-Iran war levels, as producers offered end-of-quarter sales to help clear out inventories. Export prices fell by between 4.5¢/lb and 11.5¢/lb on an fas Houston basis, depending upon grade, for the week ended 26 June. Prices were in some cases in a wide range, with not all producers offering at the lowest levels. "Producers have found some large traders to help them clear inventories," said one US PE trader. "Not all manufacturers are participating." Prices started declining at the end of April, when the global market was pressured by low-priced resin from China and weak global demand. With this week's decline, prices are near, or in the case of high density polyethylene (HDPE) high molecular weight film, actually lower than on 27 February, before the US war with Iran began. HDPE high molecular weight film prices were assessed at 39¢/lb on 26 June, 4.5¢/lb lower than levels on 27 February. Other grades, such as HDPE blow molding, HDPE injection and linear low density polyethylene (LLDPE) butene are between 3.5¢/lb-6.5¢/lb higher than levels on 27 February. Low density polyethylene (LDPE) prices are declining also, but have held a premium to other grades, with prices still 11¢/lb higher than pre-war levels. Last week, traders said some of the lowest prices were limited to sales in China. But this week, traders said there are no restrictions on where the product can be sold, as long as it is outside of the North American market. "There are no restrictions. The producers are asking us to take more," said another US PE trader. "They are feeling some pressure." The pressure has come from a number of factors, including: low prices out of China which pressured the global market lower, high producer inventories in the US and Canada, weak global demand, and concerns about volumes that will come out of the Middle East once the strait of Hormuz fully opens. Once producers work down their inventories, some sources said it is possible that prices could rebound slightly. However, one trader said a significant price increase is not likely, because then the material sold this week at low prices could end up being re-exported back to the US. "If they raise prices above 50¢/lb again, all of these tonnes sold will make a round trip and come back," said the trader. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.