Spandex-price – rPET-packaging-loop
The price of Brent crude oil, the world benchmark, has increased in 2022, partly as a result of Russia’s full-scale invasion of Ukraine. In addition, a strong U.S. dollar means that countries that use currencies other than the U.S. dollar pay more as crude oil prices increase, said Hydrocarbonprocessing.
Since June 1, 2021, the Brent crude oil price has increased by 59% in U.S. dollars and by 86% in euros. The U.S. dollar index measures the value of the U.S. dollar against six currencies: the euro, yen, British pound, Canadian dollar, Swiss franc, and Swedish krona. When the U.S. dollar index increases, it means the U.S. dollar is gaining value against those currencies. Conversely, it also means those other currencies are losing value against the U.S. dollar.
Crude oil is generally priced in U.S. dollars, so purchases in other currencies are not only affected by the dollar price of crude oil but also by the exchange rate to the dollar. The price of crude oil and the value of the dollar generally move in opposite directions so these factors offset each other. Recently, however, the price of Brent crude oil and the value of the U.S. dollar have both increased.
Recent increases in short-term U.S. treasury yields may be contributing to higher demand for U.S. government bonds, which increases demand for U.S. dollars and, therefore, the value of the U.S. dollar against other currencies.
The value of the U.S. dollar also increases when it is considered a safer investment compared with other currencies. Recent global events, including Russia’s full-scale invasion of Ukraine and concerns caused by COVID-19 mobility restrictions in China, may also be increasing demand for the U.S. dollar. Spandex-price – rPET-packaging-loop
As per MRC, Oil prices were mixed on Monday as investor fears of a global recession spurred by lockdowns in China and weak economic data vied with signs the European Union was stepping closer to an import ban on Russian crude.
The two companies have signed a commercial agreement. Terms include New Hope Energy building an advanced recycling plant in Texas and TotalEnergies converting part of the recycled feedstock into virgin-quality resin.
TotalEnergies announced today that it has signed a commercial agreement with New Hope Energy by which New Hope Energy will build an advanced recycling plant in Texas and TotalEnergies will purchase part of the recycled feedstock and convert it into virgin-quality polymers. The material made from end-of-life plastic waste can be used to manufacture food-grade packaging. Spandex-price – rPET-packaging-loop
The plant is expected to start production in 2025. New Hope Energy will use a patented pyrolysis technology that was developed in partnership with Lummus Technology to process and convert more than 310,000 tons per year of mixed plastic waste that would otherwise be destined for landfill or incineration. TotalEnergies said it will use 100,000 tons of the Recycled Polymer Feedstock (RPF) in its Texas-based production units to manufacture high-quality polymers suitable for food-grade applications, such as flexible and rigid food packaging.
New Hope Energy said its first plant has been successfully operating in Tyler, TX, since 2018. An expansion currently underway will make it the largest pyrolysis facility in the world, according to the chemical recycling company.
“We are pleased to partner with New Hope Energy, which offers a promising technology and the ability to scale. This new project is another concrete and significant step TotalEnergies is taking to address the challenge of plastic recycling and meet our goal of producing 30% circular polymers by 2030,” said Valérie Goff, Senior Vice President, Polymers, at TotalEnergies.
Recently, the international crude oil price breaks through the high level of $110/ barrel again, as if returning to March. On May 17, the Jun futures contract of WTI has closed at $112.40/ barrel, and the Jul futures contract of Brent has closed at $111.93/ barrel; on the other hand, PP, However, the glory of March has long been lost. In East China, mainstream traders offer for homo PP raffia at 8,600-8,680yuan/mt, a decline of nearly 200-250yuan/mt compared with late March.
It is not difficult to find that in this round of market, the impact of crude oil prices on the PP market is not as effective as it was in Mar. Obviously, when high costs become the norm, market participator’s attention to costs has also weakened, but the impact of demand has gradually increased. Spandex-price – rPET-packaging-loop
At present, PP spot market is in a stalemate, which is also because the downstream demand is lower than expected.
At present, the cost of each production process of PP is higher than the spot price of homo PP raffia, and the real-time cash flow reproduces a comprehensive loss phenomenon, among which the loss of oil-based PP is the most obvious. It has to be said that since 2021, the support from cost-side of PP is always strong, which is good for the spot price, and at least it is unlikely to have a significant plunge.
In May, there are still many PP plants shut for maintenance in China. According to statistics from CCFGroup, as of May 17, the output lost by PP due to plant turnaround in May is about 418,000 tons. In addition, the output lost due to the reduction of some plants, the total loss is expected to reach about 560,000 tons. On the other hand, the current price spread between RMB market and PP CFR China market is large, and the export arbitrage window is open, which can also alleviate a certain supply pressure in China. Moreover, there is no news that new plants will be put into operation in May, so the supply situation in May is also bullish for the market.
Price of spandex kept falling after the May Day holiday with ongoing soft demand and collapsing PTMEG price, with mainstream price of 40D down to below 50,000yuan/mt and even lower at 45,000yuan/mt. By May 13, price of spandex 40D was at 48,000yuan/mt, hitting the lowest level since late-Feb, 2021.
Price: moved down and the price gap shrank
Supply of spandex remained high but has decreased. The operating rate of spandex plants fell to 80-90% and may reduce further in later period. New units are still active in starting production, while some slightly delay launching with selling pressure. Spandex-price – rPET-packaging-loop
However, most downstream fabric mills purchased spandex on a need-to-basis. Traders purchased under large orders and bargained for lower price. Suppliers of spandex were active sellers under burden. Stocks of spandex accumulated to 41 days. With fierce competition, price of spandex headed south.
According to the data from CCFGroup, supply of spandex was in glut in 2018-2019, with yearly disparity of 20D and 40D at 5,640yuan/mt and 5,820yuan/mt respectively. The price gap between 20D and 40D has dropped by 9,000yuan/mt to current 16,000yuan/mt from the highest 25,000yuan/mt in Aug 2021, while sustained high. The price gulf between 10D-30D and 40D is estimated to shrink further later.
By mid-May, the logistics in Zhejiang, Jiangsu, Fujian and Guangdong has been basically recovered to the level in late-Mar. Among production bases of PFY and downstream products, only factories in Jiangyin, Jiangsu was under strict regulation amid the pandemic.
Transportation has improved while PFY market was pressed by upstream and downstream market. Spandex-price – rPET-packaging-loop
The comprehensive polymer raw material cost ascended with consolidating oil price, firmly upward naphtha-PX-PTA chain and rising MEG price due to restoring fundamentals. The root was global energy supply issue resulted from the Russia-Ukraine conflict. Therefore, the support from cost side was obvious.
Prices of PFY sped up to rise in May stimulated by increasing raw material market and to reduce losses. Taking conventional flat POY150/288 as an example, discounted price was at 7,500yuan/mt in end-Apr and it moved up to 8,600yuan/mt by May 16, with increment at 1,100yuan/mt. Prices of other POY also increased by around 1,000yuan/mt, while those of FDY was less at 500-600yuan/mt and those of DTY were the lowest as it was more close to the terminal market. Price of conventional grey fabrics was hard to climb up and some plants even cut price for promotion.
With quickly rallying price, the profit of PFY apparently improved. As a result, the stocks obviously appreciated and the cash flow losses dropped. The losses of conventional POY narrowed to current 300yuan/mt from 700yuan/mt in end-Apr and those of FDY reduced to 500yuan/mt from 700yuan/mt in end-Apr.
Starlinger & Co Gesellschaft m.b.H. Vienna, Austria
The WorldStar Packaging Awards ceremony took place in Milan at the beginning of May. Out of 440 entries from 37 countries, the “rPET School Milk Cup Project” from Upper Austria won the Sustainability Award in GOLD as the world’s most sustainable packaging solution – beating out packaging made of cardboard, glass, aluminium and paper. Spandex-price – rPET-packaging-loop
What many define as a goal for the future is already a reality in Upper Austria: environmentally friendly packaging made from recycled material that is recycled back into high-quality packaging for food. The flagship project proves that a circular economy is possible in the plastics and packaging industry and has already received many national and international awards. “The fact that the World Packaging Organization has awarded the golden sustainability award to our recyclable and recycled plastic packaging, among all products, makes us very proud,” says Markus Fellinger, General Manager of Starlinger viscotec. “We have to achieve high recycling rates, such as those already established for beverage bottles, also for other food packaging such as yogurt pots and trays. Packaging made from recycled PET is sustainable because this material can be recycled virtually infinitely and to a high quality.” Ideal recyclability of the packaging is therefore the first prerequisite for a closed packaging recycling loop.
Spandex-price – rPET-packaging-loop