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.
UK sets out packaging responsibility policy
UK sets out packaging responsibility policy
London, 27 February (Argus) — The UK has outlined the intended method and impact of its upcoming Extended Producer Responsibility (EPR) for packaging in a policy statement. The UK department of environment, food and rural affairs (Defra) published the statement on the introduction of EPR for packaging today. It was agreed by the devolved governments of Scotland, Wales and Northern Ireland, three UK nations which have some decision powers over their environmental policy. The EPR scheme for packaging policy introduces an obligation for producers to pay for the collection and disposal costs of their household packaging when it becomes waste. The introduction of the EPR scheme is required by the Packaging Regulations 2024. PackUK is the appointed EPR scheme administrator. The policy details the outcomes and deliverables that PackUK must achieve in the first year of the scheme, the core governance documents they must publish each year, and the deadlines for these publications. PackUK should publish final base fees for the 2025/26 year no later than June 2025. The introduction of base fees is anticipated to incentivise producers to improve design and place less material on the market, resulting in the prevention of packaging becoming waste. The scheme administrator must use fee modulation from 2026/27 onwards to incentivise the move to recyclable and reusable packaging. By Chloe Kinner Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
European competitiveness a concern for recyclers
European competitiveness a concern for recyclers
London, 21 February (Argus) — European PET recyclers and policymakers outlined their goals to support the European recycling industry's global competitiveness and reaffirmed their commitment to a strong internal market in the EU at the recent Petcore annual conference. Participants discussed how to address significantly higher costs that European recyclers face, compared with other global regions. The European PET recycling industry is at a structural fundamental disadvantage to markets further afield, delegates heard, with reports that waste collection costs can be up to five-10 times higher than in some other regions. Market participants are in agreement that EU production of plastic waste needs a reliable and local output, which recycled content requirements in the EU Single Use Plastics Directive (SUPD) and Packaging and Packaging Waste Regulation (PPWR) have gone some way to provide. But recyclers highlighted the need to create a level playing field with other regions to prevent rPET imports from affecting Europe's competitiveness. They warned that, without protection, the European plastics industry could face further closures. This could be a particular concern with restrictions on waste exports set to become more stringent as revised EU Waste Shipment Regulations take effect, with more incineration or landfill of plastic waste — in lieu of recycling capacity — at odds with the EU's climate and environmental objectives. Policymakers expressed an awareness of the need to balance sustainability and competitiveness in the region. Relocating plastic recycling outside of the EU is not only bad for the environment, it will impact society and the economy negatively too, stated a representative from DG Grow, European Commission. Providing EU affordable available low carbon energy is a priority, they said. But energy costs are not the only obstacle to securing the European plastic recycling market. In order to develop investments and to ensure growth in the market the sentiment is there needs to be readily-available access to finance to build high capital expenditure projects such as scaling up capacities in chemical recycling. The DG Trade representative discussed strategies to restrict low-cost imports, and reaffirmed commitment to supporting the domestic markets and trying to be more nimble through trade defence. They highlighted the success of the anti-dumping duties imposed on Chinese PET and rPET. But some market participants debated the impact of the duties, suggesting that while volumes from China many have reduced, imports from southeast Asia have increased, shifting trade patterns but not supporting European market share. But the most effective way to create a level playing field could be through well-thought-out regulations, with the smallest-possible administrative burden, to allow easier and more consistent enforcement across different regions, delegates heard. Policy makers also suggested that removing some of the internal barriers within the single market — such as by harmonising Extended Producer Responsibility (EPR) regulations across national borders — could be another step to supporting the European industry. They suggested the Circular Economy Act (CEA), which is currently being worked on, can help as this has an objective to reduce waste the burden of administration on the European market. Along with secondary legalisation to the PPWR, the CEA is intended to prevent loss of resources and boost the market for recycled materials. But details were relatively scarce, and market participants were concerned that implanting impactful legislation may take too long in the context of immediate and ongoing challenges faced by European recyclers. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
S Korea's SK Chemical to build plastic waste facility
S Korea's SK Chemical to build plastic waste facility
Shanghai, 21 February (Argus) — South Korean producer SK Chemical will establish a Recycle Innovation Centre (RIC) at its Ulsan petrochemical complex, where eco-friendly chemical materials are produced, the firm announced on 18 February. The company will invest in new pilot facilities for the chemical decomposition of plastic waste to produce recycled BHET (r-BHET), an intermediate raw material in the production of PET and copolyester. SK Chemical aims to start up the depolymerisation pilot facility in 2026 with production capacity of 50 t/yr of r-BHET. The plant is integral to SK Chemical's chemical recycling technology and will be linked with existing commercial copolyester production facilities. The pilot facility is part of SK Chemical's efforts to process and reuse plastic waste that is difficult to recycle. The facility will validate commercialisation technology for various low-quality plastic waste types that were previously difficult to recycle using conventional methods, including textiles, fibres, films, and automotive parts. Recycling textiles is known to be highly challenging because of the diverse forms and material types mixed in a single garment, including polyester yarn as well as fibres such as cotton and various accessories such as buttons. SK Chemical previously established a PET chemical recycling plant in Shantou in south China's Guangdong province after purchasing Guangdong Shuye's r-BHET and chemically recycled PET (r-PET) units in 2022 to strengthen its recycled plastic business. The Shantou plant can now produce 70,000 t/yr of r-BHET and 50,000 t/yr of r-PET pellets. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Japan’s Mitsubishi Chemical to produce recycled PE, PP
Japan’s Mitsubishi Chemical to produce recycled PE, PP
Tokyo, 17 February (Argus) — Japanese petrochemical producer Mitsubishi Chemical plans to demonstrate production of recycled polyethylene (PE) and polypropylene (PP) at its chemical recycling plant in eastern prefecture Ibaraki from this summer. Mitsubishi Chemical and its five recycled plastic supply chain partners — the city of Kashima in Ibaraki, recycled material producer Refinverse, package manufacturer Toyo Seikan, food supplier Kewpie and Ibaraki-based supermarket operator Kasumi — signed an agreement on 14 February to collaborate in demonstrating recycled plastic production and supply. The firms will collect waste plastics within Ibaraki for processing to produce oil, which will be used to manufacture recycled plastics such as lids of sauce bottles for supply to the market before being collected from end users as waste plastics for chemical recycling. Mitsubishi Chemical will use its chemical recycling plant in the Kashima petrochemical complex in Ibaraki for this circular economy project. The firm completed construction of the plant in November 2024 and has been conducting a trial run to turn waste plastics into regenerated oils. Mitsubishi Chemical's subsidiaries Japan Polyethylene and Japan Polypropylene will be in charge of manufacturing PE and PP from the recycled oil. The demonstration will continue until June 2026. But the timeline for this project and its Kashima chemical recycling plant beyond this, including targets for commercial operations, was not disclosed. Mitsubishi Chemical initially aimed to start commercial operation of the plant, which can process 20,000 t/yr waste plastics to generate around 12,000-16,000 t/yr of regenerated oil, by the April 2023-March 2024 fiscal year. But construction was postponed because of the Covid-19 pandemic and delays in deliveries of equipment amid the Ukraine-Russia conflict. By Nanami Oki Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
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