US plastics recyclers plagued by limited supply

Spanish Market: Petrochemicals
28/03/25

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 naturalhigh 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 beingavailable 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

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11/04/25

Recycled resin importers caught in tariff uncertainty

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EU exempts most LLDPE imports from retaliatory tariffs

10/04/25

EU exempts most LLDPE imports from retaliatory tariffs

London, 10 April (Argus) — Most linear low density polyethylene (LLDPE) imports will be exempt from EU retaliatory tariffs should the bloc go ahead with countermeasures against the US, according to a draft list of products seen by Argus . The EU has put the retaliatory tariffs on hold for now, after US president Donald Trump announced on Wednesday that he is pausing his planned "reciprocal" tariffs for 90 days. The European Commission has yet to publish the final list of US products that would be subject to any countermeasures, but before Trump's surprise move, the HS code 39014000 was removed. The list was approved by a majority vote of EU member states on Wednesday . Other HS codes of PE grades were included in the draft list and are earmarked for 25pc tariffs. It is now uncertain if and when the EU tariffs might be implemented. Prior to Trump's u-turn, 15 May was the likely date for EU tariffs on US PE imports. But "everything is paused," European Commission trade spokesperson Olof Gill told Argus . LLDPE imports into the EU are categorised under the HS codes 39014000 and 39011010. The former made up just over half of all PE imports to the EU from the US in 2024, while the latter accounted for less than 12pc. The EU's PE imports from the US totalled 1.8mn t last year. Market participants told Argus that the EU will remain dependant on LLDPE imports from the US for specific grades, which include LLDPE butene and metallocene LLDPE. The UK also excluded US-origin LLDPE imports falling under the HS code 390140 from its provisional list of products that could be subject to retaliatory tariffs. By Sam Hashmi and Dafydd ab Iago Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Grimaldi buys nine methanol-ready vessels

08/04/25

Grimaldi buys nine methanol-ready vessels

New York, 8 April (Argus) — Italian ferry operator Grimaldi Group has ordered nine methanol fuel-ready vessels that will be delivered by 2030. The company is spending $1.3bn for six vessels that will be operated in the Mediterranean Sea by subsidiary Minoan Lines and three ships that will travel between Finland and Germany in the Baltic Sea. Those vessels will be operated by another subsidiary, Finnish shipping company Finnlines. The ferries will cut CO₂ emissions per transported cargo unit by more than 50pc compared with ships traveling on the same routes, according to Grimaldi Group. The Mediterranean ships will be able to hold up to 2,500 passengers, 300 cars and will have 3,300 freight lane meters. The Baltic ferries will be able to carry 1,100 passengers, 90 cars and have 5,100 freight lane meters. China Merchants Jinling Shipyard is set the deliver the vessels from 2028-2030. By Luis Gronda Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US PE exports could lose market share on new tariffs

04/04/25

US PE exports could lose market share on new tariffs

Houston, 4 April (Argus) — US polyethylene (PE) traders are concerned that retaliatory tariffs announced this week by China and being considered by the European Union will close the door to two of the biggest markets for US resin exports. China announced today it will impose a 34pc tariff on all imports from the US from 10 April, while the EU is in the process of finalizing countermeasures this week, all in response to widespread tariffs announced by US president Donald Trump on 2 April. "This closes off China," said one US export trader. "And it looks like a full stop in Europe too." The US exported 2.4mn t of PE to China in 2024, representing 16.8pc of total US PE exports, according to data from Global Trade Tracker. Exports to the EU totaled 2.26mn t, representing 15pc of all US exports. US PE exports in 2024 totaled 14.2mn t, with exports representing 47pc of total sales last year. During the previous Trump administration, China provided waivers for certain tariffs, including on some PE grades. Some market participants have said that may be possible again, while others have said they see it as less likely, as China has become more self-sufficient, and has other alternative suppliers, such as the Middle East. "(China) is in a better position to impose tariffs on PE today than they were in 2018," said one North American PE producer. It will be difficult for US producers to make up for the loss of market share in China and the EU, which could result in producers needing to slow operating rates. For now, markets in Africa, Latin America and southeast Asia, remain open for US material, but traders are concerned that other top trading partners could also retaliate against the US, closing off additional markets. "There are not enough places to go with this stuff," the trader said. With limited export opportunities, the North American PE producer agreed that production would likely need to slow to keep material from backing up in the domestic market and causing domestic prices to fall. "The last time we saw tariff action from China, there was an impact on the domestic market," the producer said. "Pricing went down." For this week, US PE export pricing has held fairly steady as the market absorbs the tariff news. But market participants said they believe prices could move down in the coming weeks if production is not slowed. By Michelle Klump Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

US-origin PE, PP appear in provisional UK tariff list

04/04/25

US-origin PE, PP appear in provisional UK tariff list

London, 4 April (Argus) — The UK government has included polyethylene (PE) and polypropylene (PP) imports from the US in a list of products that could be subject to retaliatory tariffs. All PE and PP HS codes appear on the list published on 3 April. The document is at this stage for consultation and only indicative of goods that could fall under the review. No details are known so far on the tariff levels nor when they could be implemented, although the deadline for responses is 1 May. This comes after US President Donald Trump's announcement on 2 April of a minimum 10pc global levy on imports from all trade partners, in addition to existing levies. The tariff on imports from the UK is 10pc, and from the EU 20pc. The UK imported 173,000t of PE from the US in 2024 and 7,000t of PP. LLDPE under HS code 390140 was omitted from the UK tariff list, a grade which accounts for 45pc of all UK PE imports from the US. This means that 96,000t of PE would fall under the provisional tariffs. The UK has "a range of levers" at its disposal for responding to the US' levies and will continue speaking with Washington on an "economic prosperity deal", UK prime minister Keir Starmer said on 3 April. The import tariffs imposed by the US on 2 April present a "significant risk" to the global economy, according to the IMF . President Trump is holding firm on the tariffs , even as US stock prices tumble, but other US politicians are less convinced. The US Senate is attempting to block tariffs , but legislative action is unlikely to become law. By Tim van Gardingen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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