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.
Is this progress?
Is this progress?
A legally binding UN treaty on plastic pollution remains elusive after the sixth round of negotiations, and the path forward is unclear London, 22 August (Argus) — Familiar underlying issues prevented an agreement from being reached at the sixth round of UN negotiations to create a legally-binding treaty on plastic pollution, and now there is uncertainty about the next steps in the process, Pamela Chasek, executive editor of the Earth Negotiations Bulletin produced by the International Institute for Sustainable Development (IISD), told Argus. The sixth round of discussions — known as Intergovernmental Negotiating Committee (INC) 5.2 — was already an unscheduled extension of the negotiating process, which was supposed to be completed at INC 5.1 in December last year. No date has yet been set for a resumption, and Chasek noted that "there is no clear path forward" to setting one. "[The INC] could bring it back to the UN Environment Assembly (UNEA) Bureau and ask for an extension… or they may need a new mandate", she said, "the mandate was extended for this meeting… the UNEA Bureau can agree to extend the mandate again… or say, at this point, this needs to go back to the full assembly, which meets at the beginning of December". Upstream measures absent On the second-last day of negotiations, the INC chair circulated a draft text for consideration by delegates, followed by a revised version the following day. Neither proved particularly popular, with Chasek noting "a lot of people felt that the Chair's text did not reflect any of the negotiations that had been going on during the first week and after the release of the first draft text". Notable in its absence from either draft text was any reference to controls on plastic production, which was present as an option in the chair's text following INC 5.1. Whether such upstream measures should be included in the scope of the treaty has been an ongoing point of contention throughout negotiations. Upstream measures were supported by the EU, along with a so-called "high ambition coalition" of over 100 countries, but opposed by others including a number of oil- and plastic-producing countries. Their omission from the draft text may have reflected the chair's view that there was little chance of consensus being reached if they were included, Chasek said. She noted that other environmental treaties have taken an approach of facilitating a weaker agreement that can then be amended and strengthened at a future point, and said that this may have been the chair's intention. But attempts to include a provision for amendments to be adopted based on a 75pc voting majority "if all efforts at consensus have been exhausted" may also have proved a sticking point, preventing some delegations from backing the text. India — which has opposed upstream measures — called for mandatory consensus on amendments to the document and annexes. US opposes unilateral approach The US had appeared open to production limits ahead of INC 5.1, during the final months of the Biden administration. But a release from the State Department following INC 5.2 expressed opposition to "prescriptive top-down regulatory approaches that will stifle innovation and drive consumer inflation across the US economy and all over the world". The State Department said the US supports "an agreement that allows countries to use tailored and cost-effective solutions that will work best in their country". Reduced support for environmental regulation is in keeping with the approach of the Trump administration, which has — among other things — on climate change. But it is unclear how much effect US rejection of unilateral measures in plastic treaty negotiations will have on the final outcome, given that other countries remained opposed to upstream measures throughout, Chasek said. Can an agreement be reached? The scope of the treaty is not the only sticking point in negotiations after INC 5.2. The issue of finance was also discussed at length, and delegates are even yet to agree on the definition of plastic waste, which was another omission from the draft text proposals. Following negotiations, French ecology minister Agnes Pannier-Runacher expressed frustration. And Plastics Europe managing director Virginia Janssens, while applauding the "political will to continue negotiations", said that "we hear and share society's concerns and are disappointed by the inability to agree on a legally binding global agreement on plastics pollution in Geneva". Chasek's view is that attempting to finalise a treaty within five sessions was always likely to be challenging. "Too many countries had very different visions for this agreement. Some didn't want it at all and some wanted a really strong agreement to deal with the full life cycle of plastic", she said. If a path to continue negotiations can be found, then an agreement is still possible. But a strong treaty stretching from production of plastic all the way down to waste management looks less likely with every deadlocked session. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Global plastics talks adjourn without deal
Global plastics talks adjourn without deal
Brussels, 15 August (Argus) — UN-led negotiations for a global plastics treaty ended without agreement on 15 August, with talks adjourned and no date set for their resumption. The Intergovernmental Negotiating Committee (INC) had met in Geneva to advance a legally binding instrument to tackle plastic pollution. Key negotiating points included production caps, chemicals of concern, financing and compliance. The talks followed a previous draft discussed in Busan, South Korea, in late 2024. UN Environment Programme (UNEP) executive director Inger Andersen said the 10-day session had been "hard-fought" against a backdrop of "geopolitical complexities, economic challenges and multilateral strains". The EU had signalled flexibility ahead of the talks, notably on production limits. But opposition from producer countries remained firm, particularly on curbs to primary plastic polymer output and problematic chemicals. EU environment commissioner Jessika Roswall said the latest draft text was a "step forward", although it fell short of the bloc's ambitions. The EU will continue to "push for a stronger, binding agreement that safeguards public health, protects our environment, and builds a clean, competitive and circular economy", she said. French ecology minister Agnes Pannier-Runacher expressed frustration, saying France, the EU and a coalition of over 100 countries had "done everything" to reach a deal. "Oil-producing countries and their allies have chosen to look the other way. We choose to act," she said. Greenpeace delegate Graham Forbes said fossil fuel interests had undermined progress. "The vast majority of governments want a strong agreement, yet a handful of bad actors were allowed to use process to drive such ambition into the ground," he said. Benny Mermans, chair of the World Plastics Council and vice-president of sustainability at Chevron Phillips Chemical, urged negotiators to "steer away from contentious issues that threaten the historic opportunity to reach an agreement to end plastic pollution". He called for pragmatism and concentration on building waste management capacity and a circular model. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US-Brazil trade tension weighs on specialised tankers
US-Brazil trade tension weighs on specialised tankers
London, 8 August (Argus) — US import tariffs on Brazilian goods and the threat of reciprocal measures have curbed trade between the nations, cutting cargo numbers available to specialised tankers. But this could drive up trade on other routes. Washington's 50pc import tariff on Brazilian goods, effective from 6 August, takes US tariffs on Brazilian ethanol, a common product flow requiring specialised tankers, to 52.5pc . A tariff this high would undoubtedly cut trading volumes available to specialised tankers, in the near term at least. As the US is one of Brazil's primary ethanol export destinations, sellers might ramp up exports to other markets to plug a the gap. The EU is a leading importer of Brazilian ethanol, and the finalisation of the EU-Mercosur trade agreement could substantially boost this trade. The current terms of this agreement would provide maximum quotas high enough to entirely cover the amount of Brazilian ethanol exports to the bloc, and slash EU import tariffs by around two-thirds. This could support much higher exports of ethanol from Brazil to the EU on specialised tankers, as long as Brazilian domestic demand does not absorb the supply. It is unlikely that US exports would jump to meet EU demand, considering the EU has made no commitments to lowering market access barriers for US ethanol as part of its trade deal. Brazil's exports of tallow, a biofuels feedstock, to the US are also likely to drop, prompting exporters to look for new markets, either domestic or in Europe . Some chartering activity could be sustained between Brazil and the US, as biofuels producers in the latter country could be able to claim a "duty drawback". This would refund up to 99pc of the duties, taxes and fees paid during the import process, if they use Brazilian tallow to produce HVO and SAF for export to common destination markets including Canada, the Amsterdam-Rotterdam-Antwerp (ARA) hub, or the UK. With falling Brazil-US trade, it is likely that shipowners will focus on positioning vessels in US Gulf coast market or instead compete for long-haul cargoes of ethanol or soybean oil from Latin America to west coast India and east Asia. In the build-up to Trump's executive order, Brazilian president Luiz Inacio Lula da Silva said his administration would consider import tariffs on US goods under Brazil's economic reciprocity law. The US exports caustic soda, glycols and methanol to Brazil on specialised Stainless Steel J19s, Handysizes and Medium Range tankers. The US exports far higher amounts of products that require specialised tankers to Brazil, than Brazil does to the US. Of methanol, ethanol, aromatics, glycols, caustic soda, sulphuric acid, vegetable oils and biofuels, the US exported 4.23mn t to Brazil in 2024 while Brazil exported 651,000t to the US, Kpler data show. This means any reciprocal measures from Brazil would probably have more of an effect on the regional specialised tanker market. Brazil is the leading importer of US caustic soda but Brazil's imports from the US declined by more than 16pc in June from a year earlier, according to GTT, as market participants sought to avoid facing tariffs mid-shipment. Cargo volumes heading to Latin America in the US Gulf coast specialised tanker spot market have dropped even further in recent weeks. Many expected Brazil to begin importing more US ethanol this year to supply a new fuel mandate that increases ethanol blending in gasoline to 30pc from 27pc. Importing US ethanol could become unviable if the Lula government decides to implement import tariffs. It is unclear if Brazil will implement reciprocal tariffs. The most recent finance ministry response plan included credit concessions, an increase in government purchases but did not mention reciprocal measures. By Leonard Fisher-Matthews Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
China to implement new recycled plastics standards
China to implement new recycled plastics standards
Shanghai, 8 August (Argus) — China's State Administration for Market Regulation has recently issued nine national standards for the recycled plastics industry. The new standards will come into effect on 1 February 2026. The China Petroleum and Chemical Industry Federation will administer the standards, and the plastics recycling branch of the China Synthetic Resin Association organised their formulation. Market participants say the standards will require manufacturers to consider recyclability when designing packaging, reduce materials such as labels and adhesives, and avoid using metal for some bottle mouths. This also invites a wide range of producers and users to discuss quality standards for detailed key specifications. The testing of recycled materials is a major concern for many recyclers and end-users, because of cases where virgin materials are passed off as recycled. These standards may not be used in food-contact applications in the short term, but they can help to provide technical support for the entire process of building a closed-loop plastic recycling system, as well as offer clearer regulations for producing and using recycled plastics, a leading recycler said. The standards include: Two for recyclable and regenerated designs (rPET and rHDPE) Two quality standards for recycled plastics (rMPO and rPPE) One basic standard on the "guidelines for traceability and environmental factor assessment of recycled plastics" Two component identification standards (rPET and rPP) Two evaluation standards for recycled plastics (rPET and rPS) Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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