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California passes total retail polyethylene bag ban

  • : Petrochemicals
  • 24/08/30

California lawmakers have passed a complete ban on polyethylene (PE) retail plastic bags, closing a legal loophole that previously allowed thick reusable PE bags made of 40pc recycled plastic.

Both the California Senate and Assembly approved the measure, which goes to governor Gavin Newsom (D) for a signature. If he does sign it, the bill would go into effect on 1 January 2026.

Flexible plastics reclaimers and a newly formed advocacy group called the Responsible Recycling Alliance (RRA) opposed the bill, citing a higher carbon footprint for paper and reusable bags.

A 2014 California law allowed for reusable PE bags in retail stores if they had at least 40pc post-consumer recycled resin. This helped create significant demand for post-consumer recycled flexible PE resin.

But the 40pc rule received scrutiny after reports showed that the thicker bags were unrecyclable, despite their labeling. CalRecycle reported that the volume of merchandise bags discardedgrew to 231,000 metric tonnes by 2022, a 47pc increase from 2014, when the original plastic bag ban was passed.

"It's time for us to get rid of these plastic bags and continue to move forward with a more pollution-free environment," senator Catherine Blakespear (D) said following passage of the bill in the state Assembly.

The RRA, the group founded by reclaimers Merlin Plastics, PreZero and EFS Plastics, had argued unsuccessfully that the bags should instead be included in California's extended producer responsibility program.

Woven polypropylene (PP) bags were not affected by California's latest bag ban. But a study by market research company The Freedonia Group funded by the American Recyclable Bag Alliance showed that banning PE bags and enforcing reusable PP bags caused virgin plastics usage for bags to rise by 300pc after the ban's passage in 2022.


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25/03/14

Plastics Europe urges de-escalation in trade tensions

Plastics Europe urges de-escalation in trade tensions

London, 14 March (Argus) — Industry association Plastics Europe has urged a de-escalation in ongoing trade tensions between the EU and the US, following the inclusion of polyethylene (PE) among products proposed by the European Commission for retaliatory tariffs. "The imposition of tariffs, particularly on industrial goods such as plastics, will disrupt supply chains, raise costs for businesses, and negatively impact consumers on both sides of the Atlantic," said Plastics Europe's managing director, Virginia Janssens, on 13 March. "We urge both the EU and U.S. to prioritise diplomatic solutions to avoid escalating trade tensions further." The European Commission on 12 March begun consultations on imposing countermeasures to US tariffs of 25pc on EU and other imports of steel, aluminium and related products. Other products include high-density polyethylene (HDPE), low-density PE (LDPE) and linear LDPE (LLDPE), according to a European Commission document listing the products proposed for retaliatory tariffs. The European Commission did not publish the specific level of proposed tariffs, noting that a formal legal proposal will follow consultation with industry and member states. But a senior EU official noted that "25pc might be a good number". The retaliatory tariffs, if approved by EU member states, will be implemented from 13 April. The US is a key global supplier of PE, with exports totalling around 14.2mn t in 2024. PE exports from the US to the EU in 2024 stood at 2.1mn t, forming around 15pc of the export share. The EU is a net importer of HDPE and LLDPE. This week's developments caught many market participants by surprise. There was no immediate impact on prices as many participants opted for a wait-and-see approach. The European PE market has been grappling with an uncertain demand outlook given weak underlying economic conditions. An imposition of import tariffs could help support domestic European PE production, but there are widespread concerns of these resulting in higher prices for consumer goods and adversely affecting future demand prospects. And higher costs of inputs could further hurt competitiveness of European finished goods in the global markets. Plastics Europe called for "collaborative efforts to resolve this dispute in a manner that protects industry, jobs, and consumers in both the U.S. and Europe." By Sam Hashmi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Japan’s MGC to fund US biomass-based plastic start-up


25/03/13
25/03/13

Japan’s MGC to fund US biomass-based plastic start-up

Tokyo, 13 March (Argus) — Japanese petrochemical producer Mitsubishi Gas Chemical (MGC) announced on 12 March that it decided to invest an undisclosed value in a US biomass-based plastics start-up ReSource Chemical. ReSource Chemical is developing technology to generate furandicarboxylic acid (FDCA), which is a raw monomer used to produce plastic polyethylenefuranoate (PEF), from wooden biomass-based lignocellulose. PEF is expected to replace polyethylene-terephthalate (PET) once a reasonable production method is established, as PEF is likely to have stronger heat-resilience and durability as well as lower gas-transmission rate and moisture permeability than PET. US venture capital funds Khosla Ventures, Fathom Fund and Chevron Technology Ventures and other individual investors also plan to finance ReSource Chemical with MGC. ReSource Chemical will raise $15mn in total. The funds will be used to build a pilot plant to manufacture FDCA. MGC aims to procure furoic acid, which is an intermediate product in ReSource Chemical's FDCA production process. MGC said furoic acid is not currently in use, but the firm will explore potential usage of this biomass-based feedstock in future. Japanese companies have attempted to develop biomass-based plastics for decarbonisation. Domestic trading house Mitsui plans to explore producing 400,000 t/yr bio-PET in the southeastern region of the US, targeting to start output during 2025-2026. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

BP including methanol unit in German Gelsenkirchen sale


25/03/12
25/03/12

BP including methanol unit in German Gelsenkirchen sale

London, 12 March (Argus) — BP's methanol unit in Germany is included in the assets it has put up for sale at its Ruhr Oel-BP Gelsenkirchen (ROG) business, the company told Argus . BP said in February it would begin seeking buyers for ROG, which includes the 257,800 b/d Gelsenkirchen refinery and an associated petrochemicals plant in western Germany. The UK company hopes to reach a sales agreement in 2025, although the exact timing will depend on regulatory and government approvals, it said at the time. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Bremen & Bremerhaven ports can now bunker methanol


25/03/07
25/03/07

Bremen & Bremerhaven ports can now bunker methanol

Sao Paulo, 7 March (Argus) — The ports of Bremen and Bremerhaven in Germany can now store methanol for bunkering operations. Methanol-capable storage is available on the Weser river, and bunker suppliers in the region are examining expansion possibilities and the production of green methanol, according to the ports authority. Methanol is seen as an alternative marine fuel that could help shipowners comply with maritime regulations such as the EU emissions trading system (ETS) and FuelEU Maritime. The EU's FuelEU maritime regulation will require ship operators travelling in, out and within EU territorial waters to gradually reduce their GHG intensity on a lifecycle basis, starting with a 2pc reduction in 2025, 6pc in 2030, reaching an 80pc reduction by 2050, compared with 2020 base year levels. The ports of Bemen and Bremerhaven received 62mn t of cargo in 2024, up by 5.9pc from 2023. Overall, containers represented 4.4mn TEUs in 2024, an increase of 6.3pc compared with 2023. By Natália Coelho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Unions agree on Maasvlakte POSM petchem unit closure


25/03/06
25/03/06

Unions agree on Maasvlakte POSM petchem unit closure

London, 6 March (Argus) — Dutch union FNV said today that it has reached agreement with global chemicals company LyondellBasell on a plan to close the firm's propylene oxide-styrene monomer (POSM) plant in Maasvlakte and cut workforce. Based on the agreement the plant would close by 1 October, FNV said. A vast majority of union members at LyondellBasell voted in favour of the proposed plan, FNV said. The vote closed on 5 March. Unions had been in negotiations with LyondellBassell which operates the plant, regarding a plan to reduce the plant's workforce. "The company and the trade unions have come to an agreement on severance pay," FNV said today, but did not comment on how many workers will be made redundant or retained at the site, which employs approximately 160 people. LyondellBasell declined to comment, only reiterating what it said in February about no definitive decision being made. German producer Covestro, which jointly owns the facility, also declined to comment further today. The Maasvlakte POSM facility has 315,000 t/yr of propylene oxide (PO) capacity and 640,000 t/yr of styrene monomer (SM) capacity, but it has been idled since December 2024. The plant has been intermittently idled several times in recent years, reflecting a structural surplus in Europe's PO and SM production capacity. By Laura Tovey-Fall Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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