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PPO producer Pryme raises capex forecast
PPO producer Pryme raises capex forecast
London, 29 November (Argus) — Dutch plastic-derived pyrolysis oil (PPO) producer Pryme said capital expenditure (capex) will be "significantly higher" than initially estimated for its second planned site in northern Europe, known as Pryme Two. Pryme Two will feature three-five reactor chains with an expected annual output of 50,000-80,000 t/yr of PPO when completed, the company said. Changes to expected reactor train capacities and other design elements as a result of learning from its first site, Pryme One, have led it to increase its capex forecast for the project, although it did not provide further details. Plans for further sites, Pryme Three and Four, remain on hold until funding has been secured for Pryme Two, the company said. The company also announced it had produced 100t of PPO in October and November, bringing the annual yield of PPO to 336t from its Pryme One site. The site will undergo maintenance in the remainder of 2024, and does not expect any more meaningful volumes until 2025. The company is seeking a capital increase of €8-10mn ($8.5mn-10.6mn) "as soon as practicable" in order to support operations, as Pryme One is not expected to reach breakeven cash flow until late 2025 or early 2026, according to the company. The company said it is in the process of renegotiating with its suppliers and customers as it needed to "achieve improved commercial terms" to avoid operating at a loss even when Pryme One achieves production rates in line with its nameplate capacity, which Pryme expects in late 2025. The company said the net loss for October 2024 was €1.9mn and a similar loss is expected in November. As of 28 November, Pryme had a cash balance of €7.4mn. In the third quarter earnings report in November, Pryme said it had revised down the stated production capacity of the plant to 16,700 t/yr from 30,000 t/yr. This is a result of a lower feedstock-to-oil yield expectation — 65pc, compared with a previous estimate of 75pc — and a reduction in the plant's expected input processing capacity to 26,000 t/yr from 40,000 t/yr, as the downtime needed for reactor feeding, and cleaning and maintenance of equipment has proved longer than expected. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
EU recyclers need support: Sustainable Packaging Summit
EU recyclers need support: Sustainable Packaging Summit
Future regulations give certainty to the recycling industry for the long term, but prompt support is needed to ensure the industry continues to develop London, 29 November (Argus) — Recyclers warned the packaging industry that they needs support now to ensure enough supply will be available for future pledges and legislative targets at Packaging Europe's recent Sustainable Packaging Summit in Amsterdam. Mapping the sustainability challenge Delegates at the summit heard there is growing concern across the value chain around how to bridge the gap between now and 2030 to ensure the recycling industry can survive and continue necessary growth. In the interim years there are significant challenges in the market for recyclers which risk the secure availability of supply that brands and packaging companies need to reach desired recycled content goals in the future. Recyclers stated the industry in Europe is currently in decline, with a swathe of closures recently announced across the region and a lack of investment. Higher fixed costs in Europe, such as the price of electricity, hamper recyclers' ability to remain competitive on world scale, along with subdued demand for recyclates, exacerbated by low cost virgin material and rising imports. Brands noted less focus on sustainability from consumers and companies impacted by reduced consumer confidence and spending. Combined with the availability of lower cost virgin alternatives, this is said to be weighing on the urgency to increase recycled content as companies focus on the bottom line to manage the wider economic challenges the industry is facing. The industry must maintain sustainability momentum, and that sustainability must remain an advantage for companies for the recycling industry to continue to develop, delegates said. Navigating regulatory landscape Uncertainty in the market is hitting investment hard, and regulation is a fundamental step to providing clarity and stability for the European industry, but comes with its own challenges. The Packaging and Packaging Waste Regulation (PPWR) — which passed through the corrigendum procedure at this week's EU plenary and is now expected to be adopted by ministers on 16 December — is the first time that the waste hierarchy will be regulated consistently across EU member states. This is expected to ease uncertainties in the industry and add confidence in investments and further business planning as and when confirmed. The regulation is the most wide-reaching and ‘most challenging', due to the divergence of industries and interests across the value chain, Wolfgang Trunk, policy officer for the European Commission, said. "It is not perfect" he said, but considering the complexities "we can be content with what is now in the text. There are a lot of issues there, but we are convinced we can remedy and mitigate any concerns. We had to suffer a lot of national derogations at cost of harmonisation, or the scaling up of internal market benefits". Once the text is published the industry will try to adapt to the new framework. Trunk said it is only then the commission will observe the developments and as a backup and as last resort make amendments for specific streams or products which have encountered difficulties as a result of the regulation to come up with a solution. Positive sentiment regarding PPWR was shared by delegates, with may affirming that the industry is ready to move forward to meet the new requirements and quick action is needed to develop and implement the secondary legalisation that is anticipated. But the secretary-general of packaging organisation Europen Francesca Siciliano Stevens reaffirmed that the regulation does not go far enough in securing the single EU market and safeguarding European competitiveness on the global level. The drawbacks of a fragmented market, with varying national regulation and extended producers responsibility (EPR) schemes, were also highlighted, with delegates calling for a singular circular market. Some participants feel that harmonisation remains the weakest part of the regulation, and that political agendas have remained a barrier to overcome these difficulties. It is hoped that swift adoption of secondary legalisation, harmonised standards and the issue of necessary guidance will smooth the adoption of the PPWR. A proposed EU Circular Economy Act, presented in Ursula von der Leyen's policy guidelines upon her re-election as the president of the European Commission in July, was mentioned as a possible measure to reduce the exposure of the recycling industry to cheap virgin polymer prices. But, given the complexities and length of these legislative processes, recyclers may be entitled to reservations on how effectively this will support them in the short term. Reporting headache Packaging companies represented at the summit asked regulators to consider the need to reduce the reporting burden to help circular economy development. Frequent references were made to a ‘tsunami' of regulation, and the burden of reporting challenges around accurate and credibility in data were highlighted across the value chain. Non-harmonised EPR is a concern for the industry, with each member state implementing their own regulations. For global brands there could be upwards of 25 different policies with varying implications to adhere to in Europe alone. Participants called for clear standards and guidelines, as well as and harmonisation in data collection and reporting methodologies across the region in order to navigate the forthcoming headwinds. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Tall oil rosin output to decline in 2024
Tall oil rosin output to decline in 2024
Sao Paulo, 29 November (Argus) — Global tall oil rosin (TOR) production is likely to decline in 2024 on the back of reduced fractionation rates and softer rosin demand. Output of TOR, one of the key fractions obtained by the distilling of crude tall oil (CTO), is seen at 350,000t, down from an estimated 450,000-495,000t in 2022, two sources said. "There is still a trend for biobased natural resins, but demand is not there yet," consultant Alex Cunningham said at the Brazil Pine Chemicals Meeting in Sao Paulo on 28 and 29 November. TOR output is forecast to decline this year as CTO fractionation rates are down in the US and in Europe because of softer downstream rosin demand. Closures of tall oil refineries in the US reduced domestic CTO fractionation capacity by about 30pc, according to market participants. TOR and TOR derivatives can be used in various applications, including paper sizing, printing inks, adhesives and road marking. By Leonardo Siqueira Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Japan’s Oct naphtha imports fall on weak petchem demand
Japan’s Oct naphtha imports fall on weak petchem demand
Tokyo, 28 November (Argus) — Japan's naphtha imports totalled 1.18mn t in October, down by 10pc on the year but up by 5pc on the month, according to the country's finance ministry. Naphtha imports were lower on the year, given the continuous weakness in domestic petrochemical demand. This lowered cracker operating rates, which have been weakening since July, by 5.2 percentage points from a year earlier to 77.4pc in October, according to Japan Petrochemical Industry Association (JPCA). Cracker operating rates below 90pc indicate weakness in petrochemical consumption and the Japanese economy, JPCA said. The rates have been below 90pc since August 2022. Against a backdrop of weaker petrochemical consumption, ethylene production by domestic crackers in October fell by 7.4pc on the year to 414,500t. On a year-on-year basis, polypropylene and polyvinyl chloride output dropped by 5pc and by 12pc to 174,000t to 121,100t, respectively. Acrylonitrile output fell by 32pc to 21,300t, while styrene-butadiene rubber production stood at 15,600t, down by 25pc on the year. Aromatics xylene and benzene output fell by 2.6pc to 328,200t and by 1.5pc to 232,500t, respectively. By Nanami Oki Japan naphtha imports (t) Oct-24 Oct-23 Sep-24 y-o-y % ± m-o-m % ± Saudi Arabia 40,663 82,359 137,722 -70 -51 UAE 414,109 306,886 564,083 -27 35 Kuwait 205,941 284,441 109,249 89 -28 Qatar 148,927 147,786 195,703 -24 1 Bahrain 0 55,054 24,632 -100 -100 South Korea 179,544 92,986 89,023 102 93 Malaysia 0 0 0 - - India 38,742 0 8,516 355 - China 0 0 0 - - Indonesia 0 0 0 - - Singapore 0 0 0 - - Thailand 0 28,421 27,165 -100 -100 Russia 0 0 0 - - Australia 0 0 66,854 -100 - US 70,425 54,440 26,448 166 29 Others 79,178 69,289 60,090 32 14 Total 1,177,530 1,121,663 1,309,486 -10 5 Source: Finance ministry Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
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