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.
Singapore introduces grant for PET return scheme
Singapore introduces grant for PET return scheme
Singapore, 22 January (Argus) — Singapore's National Environment Agency (NEA) is introducing a beverage container return scheme (BCRS) producer transition grant to help beverage companies prepare for the rollout of the country's post-consumer polyethylene terephthalate (PET) deposit return system. All registered beverage producers will automatically receive up to S$2,500 ($1,900) to help offset early compliance costs under the new extended producer responsibility (EPR) framework, the NEA said. The grant covers product registration fees, producer fees and the cost of scheme stickers, with eligible charges automatically deducted from the grant during billing. Set to launch on 1 April, the BCRS will require beverage containers to carry a deposit mark and a Singapore-specific barcode. Consumers will pay a 10-cent deposit for most bottled and canned beverages, which can be redeemed when empty bottles and cans are returned at designated points. More than 1,000 reverse vending machines (RVMs) are expected to be deployed as part of the nationwide rollout. The deposit system is intended to lift Singapore's recovery rates for beverage containers and reduce waste sent for disposal. The NEA highlighted that cleaner, traceable streams of post-consumer PET collected through the scheme are expected to improve the availability of feedstock for recycled polymer production, supporting national waste-reduction goals. The NEA has also extended the transition period for companies from three to six months, giving producers until 30 September 2027 to fully utilise the grant. The scheme will be administered by the appointed operator, also named BCRS, formed by Singapore's largest beverage producers Coca-Cola, F&N Foods and Pokka, for managing fee collection and container returns. Sihan Long Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Japan’s Idemitsu builds chemical recycling plant
Japan’s Idemitsu builds chemical recycling plant
Tokyo, 19 January (Argus) — Japanese refiner Idemitsu has completed construction of its first chemical recycling plant as part of efforts to promote a circular economy in the plastic industry. Idemitsu's subsidiary Chemical Recycle Japan (CRJ) has finished the construction of plastic recycling facilities at its Ichihara plant, neighbouring Idemitsu's Chiba plant in eastern Japan, the companies said on 19 January. Construction was completed in December 2025, and Idemitsu plans to begin commercial operations at the new chemical recycling plant in April 2026. The Ichihara facility can process 20,000 t/yr of plastic waste and produce around 14,000 t/yr of recycled oil. CRJ's facilities use catalysts to break down plastic waste into recycled oil. The resulting product is equivalent to light crude and contains no heavy distillates or wax, the companies said. Idemitsu plans to blend the recycled oil with conventional oil and use it at the existing refining and petrochemical units, aiming to add environmental value to selected chemical products. Plastics made from the recycled oil are expected to cost about three times more than conventional crude-derived plastics at the current plant scale, CRJ said. The company aims to expand capacity over time and eventually reduce the cost to less than twice that of conventional plastics, it added. By Kohei Yamamoto Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
India’s Avro opens largest plastic recycling plant
India’s Avro opens largest plastic recycling plant
Singapore, 12 January (Argus) — Avro Recycling, a subsidiary of Indian plastic-moulded furniture manufacturer Avro India Limited, has launched India's largest flexible plastic recycling facility in Ghaziabad, Uttar Pradesh state, marking a major milestone in scaling recycled PET (rPET) usage for industrial applications. The greenfield plant currently has a processing capacity of 500 t/month, with plans to double output to 1,000 t/month by January-March 2026, according to an official statement released on 8 January. Historically, PET and other hard-to-recycle plastics — such as cement bags, sugar bags, and calcite packaging — were considered non-recyclable and often downcycled or discarded. Avro's technology now enables upcycling at scale, supporting the responsible processing of nearly 1mn t/yr of such waste. The recycled granules, including rPET, are used in manufacturing high-value products such as plastic furniture, automotive components, and consumer goods. These granules deliver up to 40pc cost savings compared with virgin plastic while meeting stringent durability and compliance standards — making them a sustainable alternative for manufacturers. With India's Extended Producer Responsibility (EPR) norms mandating at least 30pc recycled plastic content in rigid plastics, demand for rPET is surging. Avro Recycling aims to bridge this gap by supplying consistent volumes of high-quality rPET at industrial scale, positioning itself as a leader in India's circular economy. By Sihan Long Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
Legislative changes for plastic recyclers: 2026 outlook
Legislative changes for plastic recyclers: 2026 outlook
London, 9 January (Argus) — Argus' global recycled polymers team has picked out some of the key upcoming legislative topics that could impact the industry in 2026. EU recyclers await Circular Economy Act support The European Commission's announcement of additional measures to support the EU plastic recycling industry has been positively received by the region's largest industry body, Plastic Recyclers Europe (PRE). The commission says the Circular Economy act — which it plans to propose this year — will "introduce more comprehensive measures to remove barriers and improve the functioning of the single market for secondary raw materials, and promote demand for circular materials". As always, the devil will be in the detail, but the EU's acknowledgement of issues for European recyclers such as high power costs and mounting competition from imports and cheap virgin plastics — which PRE has been highlighting for several years — will be seen as a positive by the recycling industry. In addition to confirming its Circular Economy Act plans, the EU released a proposal for harmonised end-of-waste regulations across the bloc in December, building on work by the EU's Joint Research Committee, with an intention to reduce red tape for recyclers and build downstream confidence in the sector. An updated implementing decision for the Single-Use Plastics Directive has also been advanced to a member state vote. This clarifies that post-consumer plastic waste collected outside the EU can count towards the 25pc recycled content requirement for PET beverage bottles, providing other regulations such as 2022/161 are met, but sets limits on recyclates produced outside the EU counting towards the targets. Non-EU OECD produced recyclates would be permitted from 21 November 2027, while imports from non-OECD countries would be assessed on a case-by-case basis. The EU has committed to working towards separate HS codes for recycled and virgin plastics, to support enforcement of EU rules on imported plastics and "inform potential trade measures to ensure fair competition", the commission says. EU PET recyclers cautiously optimistic over trade defence talks European recyclers are closely watching the development of the commission's anti-dumping investigation into imports from Vietnam and are hopeful that the industry will receive more support in 2026. The announcement in December that no provisional duties would be applied has dampened optimism. But the commission is considering additional trade measures and is undertaking measures to support the recycling industry . Irrespective of potential duties, European rPET recyclers are hopeful that prices for flakes and pellets have bottomed out. The market ended last year under pressure from low virgin prices and lacklustre demand, in addition to the competitively priced imports that plagued the market for much of 2025. But towards the end of last year, the arbitrage with southeast Asian import offers narrowed, supported by higher freight costs, and European and Asian prices are now more closely aligned. With European PET bale prices likely to rise seasonally towards mid-2026, recyclers will hope to have the scope to pass higher prices on to their customers without having too negative an impact on demand, and the more balanced starting point for this year gives them cause to be cautiously optimistic. Many expect the challenging conditions of last year to persist but are hopeful that additional regulatory support may offer some light at the end of the tunnel for those that are able to weather the storm. US recycled plastics face legal test The US recycled polymers market enters this year under pressure from weak demand and fragmented policy signals. Virgin resin remains cost-competitive, reducing the incentives for recycled content, while the absence of a federal mandate leaves state programmes as the main driver of compliance. In Oregon, a critical test is looming for the industry, as the state's Plastic Pollution and Recycling Modernisation Act faces a legal challenge from the National Association of Wholesaler-Distributors (NAW). The law violates interstate commerce rules, NAW has said. A hearing is set for 14 January. The outcome could influence the development of the extended producer responsibility (EPR) landscape. An unfavourable ruling may stall similar EPR programmes in Washington and New Jersey. Underlying market fundamentals remain weak. Several US recyclers shut down their facilities last year in response to thin margins and oversupply, and brand owners have scaled back their recycled-content targets, opting for cheaper virgin resin instead. The Oregon ruling will have a significant impact in determining market direction for 2026, either reinforcing EPR programmes or deepening structural challenges for recycled plastics. South Korea mandates rPET in beverage bottles South Korea will require beverage manufacturers that produce 5,000t or more of final products to use at least 10pc recycled polyethylene terephthalate (rPET) in their products from 1 January 2026 . The environment ministry issued the mandate under revisions to the Enforcement Decree of the Resource Recycling Act to boost circularity and reduce plastic waste. The policy targets major bottled water and non-alcoholic drink producers. The threshold will expand by 2030 to include producers of more than 1,000 t/yr, and the rPET requirement will rise to 30pc. The environment ministry and the food and drug safety ministry must certify rPET for use in food-contact bottles to address safety concerns over non-intentionally added substances from contaminated recycling streams. Companies affected by the mandate must submit implementation plans by 31 January and annual compliance reports after that. The Korea Environment Corporation will verify the use of recycled content by 30 April each year. This move follows broader efforts to formalise recycled material standards in 2022 and the approval of mechanically recycled PET as a food contact material a year later. South Korea's rPET consumption in 2026 will be approximately 17,500 t/yr with the 10pc mandatory blending content, market participants estimate. Send comments and request more information at feedback@argusmedia.com Copyright © 2026. Argus Media group . All rights reserved.
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