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.
RES licences BlueAlp pyrolysis technology
RES licences BlueAlp pyrolysis technology
London, 9 May (Argus) — Italian waste management company Recupero Etico Sostenibile (RES) will license pyrolysis chemical recycling technology from Netherlands-based firm BlueAlp, to build a 20,000 t/yr plant in Pettoranello del Molise, Italy, to process difficult to recycle plastic waste. The firms signed an engineering, procurement and fabrication (EPF) agreement this week, with BlueAlp to supply a technology licence and manufacture the plant equipment at its factory in the Netherlands before shipping to the site in Italy. BlueAlp chief executive Valentijn de Neve told Argus that fabrication is expected to take around one year, with the plant expected to begin operating by mid-2026. RES will own and operate the plant alongside its existing mechanical recycling facilities in Pettoranello del Molise. It recently commissioned a new advanced 40,000 t/yr sorting centre at the same site which will provide feedstock to the pyrolysis plant. Positive step A licence agreement with a waste management company should be seen as an important step for the pyrolysis industry, de Neve said, as it demonstrates that such a company sees chemical recycling as complimentary to its existing waste management activities. UK-based waste management firm Viridor bought chemical recycling firm Quantafuel last year, but de Neve said that the licensing model is more affordable and accessible to a wider group of waste management firms. Involvement from such companies in addition to petrochemical producers — which have been the most frequent early adopters in chemical recycling — can help to accelerate the development of the industry, he said. The European petrochemical sector is facing economic challenges, amid tough market conditions globally, a generally higher cost base in Europe and the need for the industry as a whole to invest in renewing or replacing ageing production units to meet ever stricter environmental targets. Saudi Arabia's Sabic and ExxonMobil have both announced their intention to close European steam cracker capacity in the past month, and LyondellBasell launched a strategic review of its European olefins and derivatives assets on 8 May, raising questions around the sale or closure of some of its facilities. But de Neve played down any risk to investments in chemical recycling, saying that many market participants continue to see circularity as a key component of their competitiveness. Indeed, LyondellBasell said itself that its investments in a commercial-scale plant to convert plastic waste into liquid raw materials, and its development of a circularity hub in Cologne will continue as planned. De Neve also said the recent progress of the Packaging and Packaging Waste Regulation (PPWR) — which will set mandatory recycled content targets for plastic packaging — through the EU parliament, and the parliament's rejection of an objection to the European Commission's support for fuel use-exempt mass balancing rules, are positive developments for chemical recycling. As legislation has developed, companies have been more keen to speed up progress on new pyrolysis projects, he said. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Latest phase of UN plastic treaty negotiations closes
Latest phase of UN plastic treaty negotiations closes
London, 30 April (Argus) — The fourth session of the UN's Intergovernmental Negotiating Committee to develop an international, legally binding instrument to tackle plastic pollution ended on 29 April. But from the updated drafts released at the end of the negotiating session in Ottawa, Canada, it remains unclear what shape the final text will take. The treaty under discussion covers areas including waste management, product design, measurement and reporting of progress, and financing. There are plans for further inter-sessional negotiations on an updated draft text ahead of the fifth session in Busan, South Korea in November. "Much work remains to be done to narrow the gaps in understanding, as well as bridge the divides on the scope and objective of the future treaty," the International Institute for Sustainable Development (IISD) said. "This was evident as meetings to discuss the technical elements of the text diverged on almost all points of discussion, from problematic and avoidable plastics to product design, composition and performance." European plastic industry association PlasticsEurope acknowledged progress during the discussions but said that "the clock is now ticking loudly" and called on "all stakeholders" to redouble their efforts to reach an agreement. It also called for observers to be present at inter-sessional negotiations "to maintain the transparency and technical integrity of the draft agreement". There is "growing recognition" of Extended Producer Responsibility (EPR) schemes — where producers and sellers of plastic products contribute to the cost of managing the resulting waste — as a tool for managing end-of-life plastics, PlasticsEurope added. But the association expressed concern at a lack of progress towards supporting the circular economy by creating more demand for plastic waste and secondary raw materials. "The focus must now shift to policy measures that will increase the value of plastic waste as a circular feedstock by increasing demand for circular plastic raw materials, including the introduction of mandatory recycled content targets for sectors that use plastics at the national level," it said. Mandatory recycled content requirements are one of the topics under discussion, although the updated draft released on 29 April appears less firm on this topic than the draft released following the negotiating committee's third session. The option for unilateral recycled content targets does not appear in the updated draft, and options to encourage national plans for recycled content requirements now include references for consideration to the targets applying "where economically viable" and "where affordable, accessible and available". These were not in the previous draft. "We came to Ottawa to advance the text and with the hope that members would agree on the inter-sessional work required to make even greater progress... We leave Ottawa having achieved both goals and a clear path to landing an ambitious deal in Busan ahead of us," said Inger Andersen, executive director of the UN Environment Programme. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU plastics law clears parliament with mixed reaction
EU plastics law clears parliament with mixed reaction
Brussels, 24 April (Argus) — 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. By Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Brightmark to build Georgia pyrolysis plant
Brightmark to build Georgia pyrolysis plant
Houston, 24 April (Argus) — Chemical recycler Brightmark plans to build a 400,00t/yr pyrolysis plant in Thomaston, Georgia, two years after the company terminated its plan to build a similar plant in a nearby Georgia community. Pyrolysis is a form of chemical recycling that breaks down used plastic into pyrolysis oil, which can then be reprocessed into new plastics at virgin polymers facilities. The 2.5mn ft² plant will cost $950mn, including infrastructure such as roads and rail access, Brightmark said. A previous plan to build a chemical recycling facility in Macon, Georgia, ended in 2022 after Mayor Lester Miller withdrew his support, citing "long-term safety concerns" from Brightmark's "unproven process". The company finished construction of its first chemical recycling plant in Ashley, Indiana, in 2022. Brightmark said it has recycled 2,000t of plastic waste so far at its Indiana plant, well behind its anticipated volume of 100,000 t/yr. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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Podcast - 24/04/24