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.
Italy delays plastic tax to 2027
Italy delays plastic tax to 2027
London, 16 October (Argus) — The Italian government has delayed the implementation of its plastic tax to 1 January 2027, from 1 July 2026, in its latest draft budget plan for 2026-28. Implementation of the tax has now been postponed eight times since an initial decree in 2020. The tax would be €450/t ($525/t) on single-use plastics. Exemptions would be in place for bio-attributed plastics, recycled plastics, medical devices and drug packaging. There has been some doubt in the recycling sector about the implementation of the tax and whether it will take place. Italian plastics union Unionplast has opposed the tax, saying that a tax "will progressively push customers and brand owners to abandon plastic for alternative untaxed materials, not necessarily more sustainable". Plastic taxes in Europe have already been implemented in countries such as Spain, which has the same level of taxation, but it has not been completely popular with recyclers. Some market participants are more inclined to use virgin plastic and pay the tax, instead of using recycled material, according to market participants. By George Barsted Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Tyre recycler Pyrum to start work on new plant in Nov
Tyre recycler Pyrum to start work on new plant in Nov
London, 16 October (Argus) — German end-of-life tyre (ELT) recycler Pyrum Innovations said it plans to start construction on a new plant in Perl-Besch, Germany on 14 November. The facility will have a nameplate recycling capacity of 22,000 t/yr of ELTs and is scheduled to begin operations in 2027. Pyrum said site preparations are complete and long lead-time components have been ordered. Once operational, Perl-Besch will be the firm's largest plant and will more than double its current recycling capacity. Pyrum is also expanding its tyre pyrolysis oil (TPO) and recovered carbon black (rCB) plant in Dillingen, Germany by adding two new pyrolysis reactors. But after lower-than-expected output, the company said in an earlier statement it had postponed major investments in plant components from the second half of 2025 to the first half of 2026. The firm has also faced throughput bottlenecks at Dillingen's rCB unit. While the grinding process has reached its target of 1,650 kg/hr, the pelletisation stage has lagged. Pyrum said the issue is related to the transport of material between the two stages and said it is working on a solution. Once expanded, the Dillingen plant will have a nameplate capacity of 20,000 t/yr of TPO, up from 6,600 t/yr currently. By Sebastian du Plessis Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Recoup round-up: Support for existing tech key
Recoup round-up: Support for existing tech key
The UK recycling industry's near-term growth prospects depend on consolidation of its current capabilities as much as innovative new technologies London, 3 October (Argus) — Innovation is important for the UK recycling industry, but focusing on supporting current recycling capacity and scaling up existing technologies is critical in the near term, UK firm Biffa Polymers managing director James McLeary told the Recoup UK recycling conference in Peterborough on 25 September. There is no doubt that the UK recycling industry is in deep trouble, McLeary said. He pointed to recent losses of mechanical recycling capacity, including Biffa's own washing and grinding plant in Washington, County Durham, which was mothballed in June 2024 and permanently closed in early 2025 for profitability reasons. Other recent closures in the UK include Viridor Polymers' Avonmouth recycling facility and Rochester plastic recovery facility (PRF), and film recycling plants operated by Duclo, YS Reclamation and Berry (now Amcor). Others struck a more optimistic note, reminding delegates that the UK's packaging EPR (pEPR) scheme and tax on virgin plastic in packaging put it ahead of most other regions of the world in terms of legislative framework to support the recycling industry. But, prior to their comments, a brief survey of the room had also revealed that delegates' confidence that progress would be made in the 12 months following the conference was lower than it had been the previous year, reflecting the general malaise in the sector. Work with what you have McLeary did not suggest that he is against innovation, saying that new technologies will come. But his message was to focus on the here-and-now on building the business case to roll out existing technologies to tackle plastic waste in the UK. New mechanical recycling plants only take 18-24 months to build, McLeary said, and the UK needs to put them on the ground more quickly to be able to recycle waste that is currently exported. This more pragmatic view may mean that some products are not able to be fully "circular" — such as packaging being recycled back into packaging products — and some may inevitably be downcycled into lower-value applications, he said. But rather than "sitting and waiting" for new recycling technologies to reach commercial scale, more should be done to get material that can go into mechanical recycling plants out into the market quickly, he added. Innovation still important This is not to say that discussion about innovation was absent from the conference. Other participants discussed the benefits provided by new technologies in processing difficult-to-recycle waste streams, particularly household flexible packaging waste, which is currently collected and recycled at lower rates in the UK than in much of Europe. Chemical producer Dow's global director of green and circular feedstocks, Mary-Jane Hogg, and food company Nestle's head of packaging, Alison Bramfitt, both mentioned the role that pyrolysis — and by association clear rules around mass balance attribution of recycled content — can play in the sector. And Carlos Ludlow-Palafox from pyrolysis company Greenback Recycling Technologies gave details of the firm's newly established modular pyrolysis line at Amcor's flexible PE recycling plant in Heanor, Derbyshire. The companies announced the start of a six-month trial in mid-September, with a view to scaling up the ability of the technology to process household flexible packaging waste. PRN prices dominate sideline discussions Highlighting one of the challenges facing UK recyclers, discussions on the sidelines of the conference were dominated by the volatility of the UK's Packaging Recovery Notice (PRN) market, and its impact on feedstock price negotiations. UK PRN prices jumped sharply in the week leading up to the conference, peaking at £400 the day after, before falling back to £250 on 3 October. This threw UK bale prices into disarray, and — for many recyclers — demonstrates the inefficiency of the PRN system. PRNs are intended to provide financial support to the UK recycling industry, but recyclers complain that if they are forced to pay more for their feedstocks — or PRF operators have to pay more for mixed plastic waste — when prices rise, the benefits are confined upstream in the waste management sector. And, since exporters can claim a Packaging Export Recovery Notice (PERN), which has an equivalent value, for every tonne of UK packaging waste they export to an accredited recycler, UK recyclers feel that higher PRN/PERN prices improve export economics and increase competition for waste more than supporting the domestic industry. Concern about fraudulent PRN/PERN generation has also been expressed, with risks thought to increase as prices rise. For some at the conference, the volatility highlights how the PRN/PERN system creates as many challenges as it does opportunities for UK recyclers. Extending the recently implemented pEPR scheme to provide financing for recyclers as well as local authorities is seen by some as a more predictable way of supporting the industry. Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Dow to shut Belgian polyols plant by March 2026
Dow to shut Belgian polyols plant by March 2026
London, 2 October (Argus) — US chemical firm Dow will shut its 94,000 t/yr polyether polyols production site at Tertre, Belgium, by the end of March next year, it confirmed to Argus today. The move is part of a broader review of the company's European assets aimed at addressing "the structural challenges of high costs, driven by high energy costs and a burdensome regulatory environment", Dow said. The site is likely to be dismantled after closure, workers' union FGTB said. The plant has three production lines, but two were already idled as part of a restructuring that began in 2023, according to the union. The closure will affect 37 roles and eight contractor positions. Dow said it does not expect any impact to customers and will continue delivering the same product mix. The firm has 530,000 t/yr of polyether polyols capacity at its Terneuzen site in the Netherlands and a further 60,000 t/yr in Tarragona, Spain. Europe's polyether polyols market has been pressured by weak demand and excess production capacity, compounded by rising imports, mainly from Asia. Dow said a loss of competitiveness in the face of increased imports was a key factor in the decision to close the Tertre site. Imports of all polyethers, including polyether polyols, into the EU averaged 286,000 t/yr in 2020–24, with record deliveries of 323,000t last year. Imports in January–July this year were 6.3pc higher than the same period a year earlier. China is the leading supplier, followed by South Korea and Saudi Arabia. Demand from key polyether polyol sectors — including automotive, appliances and soft furnishings — has been hit by limited consumer confidence and lower spending on durable goods. Demand from the construction sector has also faltered on economic uncertainty and a weak investment environment. Argus assessed the September contract price for flexible slabstock polyether polyols at €1,030–1,100/t, down from a midpoint of €1,225/t in January and 24pc lower than the September 2024 price. Early indications for October suggest continued softening in the polyols market. 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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