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.
California textile recovery bill signed into law
California textile recovery bill signed into law
Houston, 2 October (Argus) — California governor Gavin Newsom (D) signed a bill into law on 28 September that will establish the US's first extended producer responsibility (EPR) textile recycling program. The law (SB 707) requires producers of apparel or textile articles in California to create a producer responsibility organization (PRO) that will handle and recycle textiles and apparel across the state, under the supervision of California's Department of Resources Recycling and Recovery (CalRecycle). SB 707 is the first EPR system for clothing that has passed in the US and leaves a lot of leeway to the PRO and CalRecycle in implementing the law. It provides relatively few details about how the EPR program will work and does not set any minimum recycled targets. The law was written by California State Senator Josh Newman (D) and was supported by textile industry participants and recyclers. "To achieve (our corporate goal of becoming a circular business by 2030), we must partner with policymakers to support efforts in creating more circular systems for textiles and other products," IKEA US Sustainability Manager Mardi Ditze said following the bill's passage. "We applaud Senator Newman for leading a collaborative process with industry stakeholders on SB 707 and support efforts to increase textile circularity in California and across the US." The PRO is required to provide free textile recycling drop-off centers for residents of California, and CalRecycle is authorized to impose monetary penalties against producers for violations of the program's requirements under the bill. Producers will be expected to join an approved PRO by 1 July 2026, and the EPR system is planned to begin enforcement on 1 July 2030. By Hadley Medlock Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Unilateral action can tackle plastic waste: OECD
Unilateral action can tackle plastic waste: OECD
London, 2 October (Argus) — Only stringent global measures addressing production and waste management combined can come close to eliminating plastic leakage into the environment by 2040, a new OECD report says. The report — Policy Scenarios for Eliminating Plastic Pollution by 2040 — projects the impact of different policy measures, ranging from business as usual, through measures only aimed at boosting collection and recycling or only enacted in developed countries, up to global measures targeting both upstream production and downstream waste management. It concludes that global plastic production will grow by 69pc by 2040 — versus a 2020 baseline — if the current policy environment is maintained, whereas the recycling rate would only increase by around 5pc, resulting in a 50pc increase in the leakage of plastic into the environment. Combining measures aimed at curbing plastic demand — including production caps, development of re-use systems and increased design-for-recycling — with policies aimed at boosting collection and recycling of plastic waste could reduce virgin plastic production, boost recycling rates above 40pc and reduce leakage to near zero. In a scenario where OECD members enact measures across the supply chain while non-OECD nations focus on downstream measures, virgin plastic production would rise only slightly by 2040, from 2020, the report says. But it projects that there would still be more than 10mn t/yr of plastic waste leaking into the environment, compared with 20mn t in 2020. Furthermore, the report concludes that enacting measures across the supply chain will be the most cost-effective way of limiting the environmental impact of plastic waste. This is because upstream measures such as design-for-recycling will reduce the cost of improving collection and recycling, which will be higher in many non-OECD countries where existing waste management infrastructure is more limited. Global measures across the supply chain would cost 0.37pc of gross domestic product (GDP) in OECD countries and 0.62pc of GDP in non-OECD economies by 2040, the report projects, compared with over 0.5pc and nearly 1pc, respectively, if only downstream measures were implemented. "These costs exclude the avoided costs of inaction and should be considered in the context of vastly improved environmental outcomes", the report notes. Shaping the debate The release of the report comes ahead of the fifth and final scheduled round of UN negotiations to develop a binding global treaty to tackle plastic waste, which will begin in South Korea in November. In past sessions, there has been ongoing debate about the scope that the treaty should take. Some delegates, especially from countries with a reliance on plastic-producing industries, have so far favoured a focus on downstream measures and opposed caps on virgin plastic production. A recent change of tack from the US in support of production caps surprised many observers, but its impact on discussions will depend on how much leverage it is willing to use to convince others to follow suit. Discussions during the Intergovernmental Negotiating Committee on Plastic Pollution on 25 September in New York showed member countries are still far apart in terms of policy agreements, with frustration sometimes visible from a few diplomats about the lack of progress in certain areas. Negotiations up to this point indicate that achieving the OECD's ideal scenario for tackling plastic waste will be extremely challenging. By Will Collins Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
California enacts carpet recovery law
California enacts carpet recovery law
Houston, 1 October (Argus) — California Governor Gavin Newsom last week signed into law an extended producer responsibility (EPR) program for carpets that overhauls the state's carpet recycling program. The law establishes a minimum mandate for carpet-to-carpet recycling, requiring new carpets to contain at least 5pc recycled carpet by 2028. It also requires a visual mark to identify synthetic carpet and greatly increases fees for a producer responsibility organization (PRO) that fails to meet carpet recycling mandates. The National Stewardship Action Council, an organization that advocates for a circular economy, said that the law will make "critical improvements" to the state's carpet recycling program. The carpet recycling mandate is intended to avoid the "downcycling" of bottles into carpet, as bottles are more easily recycled than carpet. Since 2011, California has required consumers to pay a carpet stewardship fee to fund the Carpet America Recovery Effort (CARE), a manufacturer-run organization that collects and recycles scrap carpet. CARE told Argus in July that the bill as proposed would upend the institution by replacing it with an inexperienced PRO to manage carpet recycling. The revised bill that Newsom signed on 27 September allows CARE or another industry group to serve as a PRO that would manage the carpet stewardship program. The law increases state government scrutiny on the PRO and increases fines for mismanagement of the program. The author of the bill, California Assemblymember Cecilia Aguiar-Curry (D), said that the law was in direct response to CARE's mismanagement of carpet recycling, and would strengthen accountability and transparency for the program. "Even with constant intervention and enforcement actions by CalRecycle and the California legislature, CARE's failure to successfully manage California's carpet recycling program has resulted in more carpet in landfills, wasted consumer fee money, constant litigation with the state, and serious damage to recycling infrastructure in this state," Aguiar-Curry said. CARE did not immediately respond to request for comment. The bill previously included materials such as vinyl and polyurethane flooring as part of the EPR program, but those sections were removed after industry organizations complained about their inclusion in a carpet bill . By Zach Kluver Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.
Industry groups applaud national recycling bill
Industry groups applaud national recycling bill
Houston, 20 September (Argus) — A bill that would standardize aspects of the US recycling system and set a recycled content mandate has met with support from plastics industry groups and companies. The bill, which was introduced by US Congressman Larry Buchson (R-Indiana) and US Congressman Don Davis (D-North Carolina), would direct the Environmental Protection Agency to establish national recycling standards across the US, lessen restrictions on chemical recycling, and set a minimum recycled content standard for plastic packaging. The bill would require manufacturers of plastic packaging to use 30pc recycled content by 2030 in order to spur demand for recycled plastic, putting the percentage ahead of some state mandate laws such as New Jersey. The bill also defines chemical recycling as manufacturing instead of solid waste disposal, which would lower environmental regulation restrictions on chemical recyclers. Already, 25 states have enshrined this in law following support from plastics industry groups. The Plastics Industry Association and the American Chemistry Council (ACC) both came out in favor of the national recycling bill after it was announced yesterday. Additionally, Berry chief executive Kevin Kwilinski and Lyondellbasell chief executive Peter Vanacker also backed the bill. "This bill would bring about transformational change to how we recycle plastics in this country, while creating regulatory certainty for businesses to tackle these important challenges," ACC chief executive Chris Jahns said. 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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