GreenPremium Prices for Bio-based Products – Nova-Institute Has Evaluated the Factors that Affect Prices along the Value Chain – GreenPremium Prices Biobased Products

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GreenPremium Prices for Bio-based Products

Nova-Institute Has Evaluated the Factors that Affect Prices along the Value Chain

GreenPremium Prices Biobased Products

Share of the GreenPremium of bio-based products, n=50

Several years of market analysis and manifold contacts to bio-based producers have shown that bio-based products achieve GreenPremium prices in many applications. In addition, the vigorous activities by big players to establish the “biomass balance approach” on the market clearly show that there is a relevant number of customers who are willing to pay a GreenPremium price for a bio-based material and product.

In the framework of the European project “Bioforever” (bio-based products from forestry via economically viable European routes), Nova-Institute has conducted a second survey that explores the phenomenon of GreenPremium prices in further detail. Are there differences along the value chain and between distinct applications and sectors? Does the feedstock question, first or second generation biomass, play a relevant role? What do market participants expect in terms of how long GreenPremium prices for their products are going to last?

The 50 participants of the survey can be identified as true insiders who either produce or trade bio-based products (or intermediates) themselves or consult related companies and have in-depth market knowledge. Almost 70% of these experts reported GreenPremium prices for bio-based products. Most of the participants (42%) consider the GreenPremium to range between 10-20%, 22% indicate a price premium of 20-40%. About 4% of the respondents see a willingness to pay even more than 50%. 32% of the participants report no GreenPremium prices.

A comparison of results of the different surveys from 2013, 2016 and 2017 shows that overall, the response patterns have changed only little. In all surveys, the range of “10-20%” GreenPremium is the most frequent answer and “more than 50%” is the least reported response. The most visible trend is an increase in the frequency of the “20-40%” range, while the “10-20%” and “more than 50%” are mentioned slightly less often over the years. At the same time the naming of “no GreenPremium” has increased (from 16% in 2016 to 32% in 2017).

It is important to know to what extent new technologies – that may require large investments – can rely on GreenPremium prices for their products on a long-term basis.

The results of the survey show that almost 60% of the respondents expect no time limit for GreenPremium at all. 30% see a limitation to the next five years, 8% to the next ten years.

The result for the most important driver for GreenPremium is not very surprising: a positive green image has been identified as the most important reason for GreenPremium prices being paid (41%). But there were also other relevant drivers found in the survey: touch of innovation (23%), enhanced attention at media can be achieved using bio-based materials instead of standard materials (18%) and expectations for higher prices (18%).

Additionally, single value-adding factors were named by the participants. The highest ranked factor for the GreenPremium price is the “Higher bio-based share of the product” (64%) and is especially valued in construction (71%). “Lower greenhouse gas emissions” (46%) and “Biodegradability” (46%) are the next important single value-adding factors for GreenPremium prices. “Biodegradability” is less important (22%) in consumer goods, but important for packaging (45%).The importance of “Sustainability certification of the biomass feedstock” (24%) is ranked differently throughout the application groups, for packaging the importance (36%) is higher than for consumer goods (11%). “2nd generation biomass” and the “GMO-free biomass” are the lowest ranked factors. GMO-free biomass is named only by 20% of the participants as important value-adding factor. An exception seems to be packaging, where GMO-free biomass (41%) reaches the same level of importance as “Biodegradability” and “Lower greenhouse gas emissions”.

“2nd generation biomass” as a motivating factor displays less variation between the application groups and has only low relevance (20%) as a single driver of GreenPremium prices. In further research within the framework of the project Bioforever, a detailed evaluation is planned in order to understand why a feedstock base of “2nd generation biomass” does not seem to play a large role in triggering GreenPremium. For example, a possible reason could be that the discussion about 1st and 2nd generation biomass feedstock was rather a discussion in the political arena than in the market or at the end customer level. Another explanation could be lack of awareness and understanding among end consumers.

Authors:

Michael Carus, Asta Partanen and Lara Dammer

Nova-Institute, Hürth, Germany

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Paraxylene prices in Asia rose – The spot prices of paraxylene in Asia rose amid the growth in the market of terephthalic acid (TPA) – Paraxylene prices Asia

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Paraxylene prices in Asia rose

Paraxylene prices AsiaMOSCOW – The spot prices of paraxylene in Asia rose amid the growth in the market of terephthalic acid (TPA), ICIS reports with reference to market participants.

Spot prices in Asia on April 17 rose by USD30 per tonne to USD958-960 per tonne, CFR Taiwan and / or China’s main ports (CMP). The deal for the June deliveries was concluded at the level of USD959 per tonne, CFR Taiwan and / or the Chinese main ports (CMP).

Futures on TFC for May contracts rose by 0.8% on April 17. In addition, high demand in the market for polyester raw materials, increased the confidence of players in the paraxylene sector, market participants say. According to them, the average sales-to-production ratio in the polyester sectors was 120%.

According to several market participants, a possible closure for the repair of JXTG Nippon Oil & Energy at its plant in Kawasaki also contributed to the growth of spot prices for paraxylene. The company operates a paraxylene plant with a capacity of 350,000 tons per year.

Paraxylene is a raw material for the synthesis of terephthalic acid – a semi-product for the production of polyethylene terephthalate (PET).

According to the ScanPlast of the Market Report company, in February 2018, the growth in the volumes of Russian PET supplies to foreign markets continued. During the reporting period, 7,36 thousand tons of granulated material was shipped from Russia, which is 92% higher than last year’s figure. In the first two months of 2018, the total export of PET granulate from Russia amounted to 13.6 thousand tons against 6.66 thousand tons last year. The volume of exports is entirely attributable to Alco-Nafta granules. Imported supplies of PET to the Russian market in February decreased by 31% and amounted to 5.71 thousand tons. A year earlier, this figure was at the level of 8 thousand tons.

mrcplast.ru

Author:   Anna Larionova

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Europe nylon 6,6 tightness worsens despite upstream ADN supply improvement – The European nylon 6,6 supply has continued to tighten this week despite improving supply in the upstream adiponitrile (ADN) market – Europe nylon 66 ADN adiponitrile

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Europe nylon 6,6 tightness worsens despite upstream ADN supply improvement

Source:ICIS News

Europe nylon 66 ADN adiponitrile

LONDON (ICIS)-, sources said on Tuesday.

In early April, Butachimie lifted its force majeure on ADN at Chalampe, France. ADN is a key raw material in the nylon 6,6 chain and had become increasingly tight over the first quarter of 2018 amid strike action at the company’s site in February.

ADN supply has been improving over the last month in the market but prior production issues in the hexamethylene diamine market (HMDA) means that most nylon 6,6 producers in Europe are still in force majeure.

The time lag between the production of raw materials and the turning of those materials into commercially available nylon virgin polymer can be substantial.

As such, the nylon market in Europe has continued to tighten even further this week, despite the supply improvement upstream.

“Nobody has stock anymore [and the rail] strike is a real headache,” one buyer commented.

“We see big demand, [we have] a lot of orders so we have to make allocations for May [as] we don’t have enough [material]. Most of [buyers] are empty, they are trying to increase their stocks but it’s impossible,” one producer added.

Availability has been further hampered by the ongoing rolling strikes in France, which have caused logistical delays for some players moving material from and through that region of Europe.

Meanwhile, demand has remained strong throughout the last four months of the year, with downstream automotive and compounding sectors driving a lot of the additional buying appetite.

Negotiations for April business have been slow so far.

However, with so many producers in force majeure and tightness continuing, further increases are possible, although some buyers previously said that they were already paying much higher prices due to ongoing shortness in the market.

The March European nylon 6,6 virgin polymer contract was assessed stable to firm at €3.48-3.84/kg FD (free delivered) NWE (northwest Europe).

Looking ahead, the market is expected to remain tight for a significant period of time.

Players disagree on when conditions will return to normal, but most now expect availability to start to improve, although the rolling strikes in France are likely to limit improvements until they end.

Upstream costs for May are unclear, although fundamentals are likely to dominate price discussions next month again.

Europe nylon 66 ADN adiponitrile

Nylon, also called polyamide, is used mainly in fibre and engineering polymer applications. Nylon fibres are used in apparel, carpets and home furnishings. Nylon engineering resins are used in automotive parts.

Pictured above: Roll of nylon climbing rope 
Source: Denis Closon/REX/Shutterstock

Focus article by Ciaran Tyler

By Ciaran Tyler
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To celebrate 180 years trading KraussMaffei will host a machinery showcase in Munich – The KraussMaffei Group is opening its doors in Munich on June 6 and 7, 2018, giving visitors a glimpse of the latest technologies and innovations from the KraussMaffei, KraussMaffei Berstorff and Netstal brands that make the company a leader in mechanical engineering – KraussMaffei machinery showcase Munich

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To celebrate 180 years trading KraussMaffei will host a machinery showcase in Munich

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India’s IOC to start new PP unit in Paradip by June – State-owned Indian Oil Corp. expects to start its new 700,000 mt/year polypropylene unit in Paradip on the east coast of India by June – India IOC PP Paradip June

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India’s IOC to start new PP unit in Paradip by June

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Coveris invests in two new extrusion lines at its Winsford facility in UK – Packaging manufacturer Coveris has installed two new extrusion lines at its facility in Cheshire, Winsford, UK – Coveris extrusion lines Winsford UK

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Coveris invests in two new extrusion lines at its Winsford facility in UK

PKBR Staff WriterCoveris extrusion lines Winsford UK Packaging manufacturer Coveris has installed two new extrusion lines at its facility in Cheshire, Winsford, UK.

The new investment in two additional 5-layer co-extrusion lines is part of the firm’s plan to support its sustainable growth strategy, Pack Positive.

Pack Positive is aimed at providing smarter plastics to reduce waste and improve recyclability.

The new machines are capable of manufacturing more than 40,000 tons of PE film annually and also create an additional capacity of 5,000 tons of recycle-ready mono-polymer films for the food and manufacturing sector.

Coveris said that the new co-extrusion lines will not only support its continued growth in the technical films sector but also marks a positive step in supporting its advancement into more sustainable and functional film alternatives.

Coveris UK president Gary Rehwinkel said: “Given the current focus on plastics packaging and the need to offer more recyclable solutions, our new investment strategically positions Coveris to further support this transition into more sustainable plastics.

“As the UK market’s leading manufacturer of recycle-ready films, no other co-extrusion plant in the country has the flexibility and capacity Coveris has.”

Coveris noted that the investment, along with continued innovation of EVOH-based, shelf-life enhancing products, strengthens its positions in the film industry.

In 2017, Coveris worked with Co-op to develop an new multi-layer polyester (PET) barrier solution intended to allow lidding film to be directly heat-sealed to a mono plastic tray.

Coveris said in a statement: “Aligning the additional capacity with Coveris’ wider flexible films offer, the investment will also create downstream opportunities for its print, lamination and conversion businesses.”

Recently, Coveris signed a deal to sell its Americas packaging business to Transcontinental (TC Transcontinental) for $1.320bn.

The acquisition is part of TC Transcontinental’s plan to significantly diversify its business into flexible packaging.

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Dow to present advances in packaging and specialty plastics at Chinaplas 2018 – Dow Chemical Company’s Packaging and Specialty Plastics business (P&SP) is set to display its sustainable products in packaging and specialty plastics – Dow packaging specialty plastics Chinaplas 2018

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Dow to present advances in packaging and specialty plastics at Chinaplas 2018

PKBR Staff WriterDow packaging specialty plastics Chinaplas 2018  at the upcoming Chinaplas 2018 event to be held in The National Exhibition and Convention Center, in Shanghai, China.

At the event, which is scheduled to be held from 24-27 April, Dow Packaging will showcase its solutions from the packaging, adhesives, transportation, infrastructure and consumer market segments.

Dow Packaging and Specialty Plastics Asia Pacific commercial vice-president Bambang Candra said: “China’s middle class is growing in numbers, in affluence, and in its commitment to sustainability.

“For Dow and our partners across the value chain, our responsibility is not only to meet the demand in terms of volume and efficiency, but to do so with innovations that increase performance and productivity while reducing resource consumption and waste.”

One of the products to be displayed by Dow includes the Tenter Frame Biaxially Oriented Polyethylene (TF-BOPE) Film, which is developed as a revolutionary alternative to traditional polyethylene (PE) film.

The TF-BOPE offers twice the impact resistance of traditional PE and almost three times more puncture resistant.

Dow will also present its Agility EC Performance LDPE Resins which are designed to allow for high coating speed at low gauges.

The AGILITY Resins, which offer adhesion, sealing and optical properties, can be used in either single or co-extruded structures such as décor, lamination and sealant layers in a variety of flexible food, home and personal care packaging applications.

At the event, the firm will also display Enhanced Expanded Polyethylene (EPE) Foam which is ideal for down gauging, as well as INNATE Precision Packaging Resins designed to offer enhanced stiffness, toughness and processability.

Among the other products, the firm will showcase ProtectionPlus which is intended to improve transportation safety in Asia through optimizing packaging on pallets.

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