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.
Maryland passes producer responsibility bill
Maryland passes producer responsibility bill
Houston, 8 April (Argus) — Maryland has approved an extended producer responsibility (EPR) bill intended to pass along the costs of recycling end-of-life packaging to producers. The bill must be signed into law by Governor Wes Moore (D). Maryland's producer responsibility law establishes fees for consumer goods producers generating more than $1mn/yr in the state. The fees are intended to reimburse municipal recycling programs for their expenses and to improve recycling infrastructure within the state. The next steps following the law's passage will be choosing a producer responsibility organization (PRO) by July 2025 to complete a needs assessment for Maryland's recycling system, with the state's initial five-year plan due by July 2028. The bill requires eco-modulation of fees, meaning that packaging materials incorporating recycled content will receive a discount in fees paid through the program. If signed by Governor Moore, Maryland will become the [sixth US state]( https://direct.argusmedia.com/newsandanalysis/article/2660158) to establish a producer responsibility law for plastic packaging. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
PRSE 2025 round-up
PRSE 2025 round-up
London, 4 April (Argus) — PRSE, the European recycling industry's flagship annual trade fair, took place this week against a background of challenging times for the industry. Concerns about its present state were reiterated at the show, while optimism resulting from rising demand in many sectors was tempered by recyclers' frustration that they have struggled to offset the impacts of rising feedstock and production costs on their margins. Industry association Plastic Recyclers Europe (PRE) chairman Ton Emans warned in March that decisive action is required to support the industry against various pressures, such as high energy costs and import pressure. Several European recyclers have announced bankruptcies or capacity closures in recent months. Emans reiterated this in his opening address at the conference, noting that the confirmation of recycled content requirements for almost all plastic packaging types by 2030 — under the EU's Packaging and Packaging Waste Regulation (PPWR) — are a positive step, but the European recycling landscape may have changed significantly by then without more immediate support. Measures to extend recycled content requirements to the automotive industry were also mentioned in the presentations as a possible opportunity for the recycling industry. But slow progress was noted on the End-of-life Vehicles Directive the European Commission proposed in 2023, which included recycled content requirements for automotive plastics. Turn the volume up On the floor of the trade fair recyclers in many industries were glad to see improvements in demand in recent weeks. Minimum rPET requirements in EU beverage bottles, growing usage of recyclates in PE films and strong production of plant pots and trays were all mentioned as factors contributing to healthier sales volumes for recyclers. But many expressed frustration that rising costs have prevented them from taking advantage of the more dynamic market by increasing margins. Bottlenecks in collection and sorting were mentioned in the presentations as a challenge for the industry. And it is noteworthy that the uptick in demand has lifted prices for PE, PP and PET bales more sharply than the prices of the corresponding pellets in many recycling chains since the start of the year. Demonstrating the bottlenecks in European collection, Eurostat recently slightly-adjusted recycling rates for plastic packaging for 2022, originally published in the third quarter 2024. These showed that many companies were at risk of mising EU targets to recycle 50pc of plastic packaging waste by 2025, rising to 55pc by 2030. Without significant investment and growth in collection, sorting and recycling infrastructure the region will likely fall short. In addition, the recent bankruptcies or capacity closures will make it increasingly challenging to improve recycling rates across the region. The data show Europe averaging a recycling rate of around 38pc in 2022. Belgium (54pc), Germany (51pc) and Slovenia (51pc) are leading, closely followed by Latvia and Italy (both around 47pc). Austria (25pc), France (25pc), Denmark (23pc) and Malta (16pc) are lagging behind. Combined with higher year-on-year electricity prices in the first quarter, rises in bale prices resulted was a squeeze on recyclers margins so far this year. Concern about the future direction of virgin polymer prices was a common discussion point. This concern highlighted the role that the recycling industry would like legislation to play in supporting demand for recyclates and reducing the exposure of recyclers to fluctuations in the virgin market, which is driven by completely different cost bases. This was particularly true among PP recyclers, many of which were concerned their ongoing efforts to pass through higher costs for household packaging waste and packaging-based regrinds to their rPP pellet customers will be hampered by falling virgin PP prices, after the propylene monthly contract price (MCP) was settled €55/t down on the month for April. Because of the mandated minimum recycled content requirements for rPET in bottles in Europe, the price of recycled material is more disconnected from virgin. But recyclers are still concerned that premiums for recycled PET flake and food grade pellets have reached the highest seen in at least two years (currently around €600/t for food grade pellet and just below €300/t for flake), which is providing a barrier to increased recycled content demand, particularly into applications outside of the bottle market. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US plastics recyclers plagued by limited supply
US plastics recyclers plagued by limited supply
Houston, 28 March (Argus) — US plastics recyclers are having trouble sourcing sufficient feedstocks because of stagnant collection volumes, according to speakers at the 2025 Plastics Recycling Conference this week in Maryland. For producers of recycled polyethylene terephthalate (rPET), recycled polypropylene (rPP) and recycled polyethylene (rPE), feedstock supply tightness has increased significantly this year. Rising demand and stagnant volumes are squeezing an industry that was already low on feedstocks, causing pricing for recycled feedstocks to jump dramatically over the past six months. Since October, prices for natural high density polyethylene (HDPE) bales have more than doubled, polypropylene bale prices have increased by 84pc, and US west coast PET bales have increased in price by 34pc, according to Argus data. While prices for each material are affected by different sets of factors, they all face tighter supplies, because the US is not collecting enough recyclables to meet demand for recycled polymers. While recyclers have increased their input capacities and consumer products companies have purchased more recycled resin, collection volumes for the US remained stagnant in 2021 and 2022, according to the latest data from the Association of Plastics Recyclers and Stina, and recyclers say the situation has not improved. "We're really bumping up against a ceiling in terms of volume for rPET production," said Lauren Laibach, director of data services at the National Association for PET Container Resources (NAPCOR). NAPCOR's 2023 PET recycling report found that the US's gross recycle rate rose to 33pc, a 4pc increase from 2022, but the rate increase was largely a result of fewer PET bottles being available for recycling. Improving collection volumes of recyclables is a problem mostly out of recyclers' hands, as state and local policy-makers are largely responsible for improving rates and investing in recycling infrastructure. However, extended producer responsibility (EPR) programs, including in Oregon and California, are expected to boost investment in recycling infrastructure. Recyclers in particularly dire situations, such as flake producers on the US west coast, may require more legislation if they are to survive. PET recycler Evergreen shut down its flake and wash line in California this week due to financial difficulties with producing flake. Bottle deposit systems, a tax credit for recyclers or a prioritization of US material under EPR schemes could help improve domestic supply of PET bottles, Laibach said. "We can't expect any sustainable, long-term improvement without policy intervention," Laibach said. By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
RecyClass updates recycling methodology ahead of PPWR
RecyClass updates recycling methodology ahead of PPWR
London, 27 March (Argus) — Non-profit certification organisation RecyClass has updated its classification guidelines for recycling ahead of the EU packaging and packaging waste regulation (PPWR) that will mandate recycled content in packaging. RecyClass will grant recyclability certificates classified as either 'Class A', 'Class B' or 'Class C', based on recyclability. It previously had other recyclability classifications, but the methodology change has registered these as 'Non-recyclable'. RecyClass certification aims to align with EU regulation on PPWR. Class A will be certified by RecyClass when the packaging in question "does not pose any recyclability issues and the recycled material can potentially feed a closed-loop scheme to be used in the same quality application," while Class B will encompass "packaging that has some minor recyclability issues that slightly affect the quality of the recycled material generated. However, majority of recycled content from this packaging can still potentially feed a closed loop." Class C certification implies there may be some issues with recyclability that can affect the quality of the recycled product. From 1 January 2030, the PPWR bans single-use plastic packaging for unprocessed fresh fruit and vegetables, and for foods and beverages filled and consumed in cafes and restaurants. Targets for minimum recycled content in plastic packaging are set for 2030 at 30pc for contact-sensitive PET packaging, 10pc for non-PET contact-sensitive packaging, 30pc for single-use plastic beverage bottles and 35pc for other plastic packaging. For 2040, the targets rise to a respective 50pc and 25pc for PET and non-PET contact-sensitive packaging and to 65pc for single-use plastic beverage bottles and other plastic packaging. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Spotlight content
Browse the latest thought leadership produced by our global team of experts.
Polyethylene model update: Key insights on 2024 PE market trends and challenges
Blog - 20/03/25Analysis: The limit to natural HDPE
Insight papers - 20/03/25Recycling legislation and learning from experience
US plastic recyclers are calling out for more legislative support to enable the industry to develop.
Explore our polymers products
