Automotive-K-2022 – Recyclate Molding 13-08-2022

Automotive-K-2022 – Recyclate Molding

-Gov’t to impose restrictions on car sales

Some restrictions will be introduced for car sales to arrest the increase in car prices, Trade Minister Mehmet Muş has said, noting the respective regulation is ready.

Under the new regulation, companies, car rental firms, and car dealers will have to wait for a period of time to sell new cars they have bought, he added.

“Those entities are the main buyers of new cars. The new regulation will require that companies, car rental companies and dealers will be allowed to sell a new car only after it has covered 6,000 kilometers or six months after the newly bought car was first registered,” Muş explained.

Some cars are put up for sale as “second-hand cars,” immediately after they were purchased but this should be prevented, the minister said, noting that this kind of trade pushes up the prices. Automotive-K-2022 – Recyclate Molding

Once the new regulation takes effect, consumers will have easier access to new cars, according to Muş.

The Competition Board is looking into whether some companies engage in price collusion, the minister said.

The Competition Authority recently launched a probe into four online second-hand car trading platforms to investigate whether they hinder competition.

The new move on car sales will help prevent profiteering, commented Altuğ Erciş, head of the Authorized Automotive Dealers Association (OYDER).

“We fully support this decision, which is designed to curb the rise in prices in second-hand cars and increase the availability of cars in the market,” he added.

Gov’t to impose restrictions on car sales

-Rigid PP recyclability upgraded to “Widely Recyclable”

How2Recycle, a project of the Sustainable Packaging Coalition (SPC, Charlottesville, Virginia; that assesses the recyclability of packaging materials – and administers a US and Canada-recognised labelling programme – upgraded the recyclability of certain rigid polypropylene packaging to “Widely Recyclable”, from “Check Locally”.

The change in the designation of PP as a recyclable material is based on an upward trend across the US in access, sortation, and end markets for rigid PP.

Increased investment in the PP value chain is supported by the Polypropylene Recycling Coalition of The Recycling Partnership (Washington, D.C.;, which has awarded 24 grants, totalling USD 6.7 mn, since its creation in 2020 for improvements in sorting technology and community education. The investment improved curb-side access to PP recycling for approximately 8% of US households, impacting over 20 mn people and increasing recovered PP by an estimated 11.33 mn kg.

Teams from How2Recycle and the Polypropylene Recycling Coalition reviewed the SPC’s 2020/2021 Centralized Study of Availability of Recycling, which reported that PP rigid containers had a 59% access rate to recycling.

The teams used the SPC study as a benchmark against data from The Recycling Partnership’s National Recycling Database and determined the US access rate for rigid PP to now be 65%. A Circular Packaging Assessment tool from The Recycling Partnership confirmed the growth and strength of domestic end markets for PP.

How2Recycle said the eligibility change is in line with requirements from the US Federal Trade  Automotive-K-2022 – Recyclate Molding

Rigid PP recyclability upgraded to “Widely Recyclable”

-Sinopec lowered benzene prices in China by CNYY200 per ton

China’s China Petroleum & Chemical Corp. (Sinopec), Asia’s largest refiner, Aug. 11 cut China’s domestic selling prices of benzene by 200 yuan (CNY), or USD30.9 a tonne, a company source told ICIS.

The selling price of the company’s benzene is cny7,950 per ton, ex-works, which corresponds to the value of imported material at USD1,033 per ton, CFR China, with immediate payment under the letter of credit, or approximately USD1,046 per ton, CFR China, with a deferral of payment under the letter of credit of 90 days.

Earlier it was reported that China Petroleum & Chemical Corp. (Sinopec on July 6 reduced domestic selling prices of benzene in China by 300 yuan (CNY) or USD46.37 per ton. Thus, from July 6, the selling prices of benzene for the supply of material to all regions of China are CNY9,300 (USD1,437.4) per ton, ex-works (ex-works).

Benzene is the raw material for the production of styrene, which, in turn, serves as the main raw material for the production of polystyrene (PS).

According to ScanPlast of market Report, in Russia, the estimated consumption of PS and styrene plastics in December last year amounted to 47.90 thousand tons, which is 3% more compared to the same month in 2020. Automotive-K-2022 – Recyclate Molding

Automotive-K-2022 - Recyclate Molding

-Agilent Broadens Polymer Offerings with New Acquisition

Agilent has now expanded its portfolio in liquid chromatography and the GPC/SEC market with its recent acquisition of Polymer Standards Service.

Recently, Agilent Technologies, a supplier serving the life sciences, diagnostics, and applied chemical markets, announced the acquisition of Polymer Standards Service GmbH (PSS), a provider of solutions in the field of polymer characterization. PSS specializes in hardware and software solutions used in defining both the makeup and creation of molecular structures and “provides solutions for gel permeation chromatography and size exclusion chromatography used in applications to determine the molecular weight and size distribution of macromolecules.”  Automotive-K-2022 – Recyclate Molding

“We’re extremely pleased to have the PSS team join Agilent to help us expand our leadership in liquid chromatography and the GPC/SEC market,” said Jacob Thaysen, president, Agilent Life Sciences and Applied Markets Group. “The advanced PSS hardware, software, columns, and reference materials we’re adding to our portfolio will enhance our offerings and ensure we deliver the broad spectrum of LC equipment, GPC/SEC analytics, and software our customers value.”

Agilent, which provides laboratories around the world with instruments, services, consumables, applications, and expertise, contends that its acquisition of PSS will broaden its existing product portfolio and customer offerings in the chemical and biopharmaceutical industries specifically in the analysis of natural and synthetic polymers like nucleic acids, proteins, monoclonal antibodies, polysaccharides, and synthetic plastic.

Agilent Broadens Polymer Offerings with New Acquisition

-Major Asian manufacturer has left the same September prices of PVC for shipments to China

A major North-East Asian manufacturer has left price offers for September shipments of polyvinyl chloride (PVC) to China stable, ICIS said.

Now its price offers for September deliveries to these regions are USD930 per ton, CFR China. Automotive-K-2022 – Recyclate Molding

On a franco-to-board (FOB) basis for Northeast Asia, price offers are USD880 per tonne for Southeast Asia and remote regions.

For September deliveries to cargo volumes over 500 tons, discounts are provided at the level of USD10 per ton.

Earlier it was reported that a large producer from Northeast Asia reduced price offers for August supplies of polyvinyl chloride (PVC) to China and Southeast Asia by USD230 per ton due to low demand. Now its price offers for August deliveries to these regions are USD930 per ton, CF China. On a franco-to-board (FOB) basis for Northeast Asia, price offers are USD880 per tonne for Southeast Asia and remote regions.

There is no discount on August deliveries.  Automotive-K-2022 – Recyclate Molding

Automotive-K-2022 - Recyclate Molding

-Driving me K-razy: our automotive materials highlights ahead of K 2022

With e-mobility an ever-looming reality, it’s no surprise that automotive is set to play a massive role at K 2022. Dave Gray, head of content at and British Plastics & Rubber, looks ahead at some of the drivers of innovation to expect at this year’s K Show.

Recycled grades on Rubber Street

Returning to its spot on ‘Rubber Street’ at K, Kraiburg will show its new post-industrial recycled (PIR) TPE grades for car interiors. The new grades contain up to 38% recycled material, derived from post-industrial waste acquired from third party businesses.

Applications for the new grades include anti-slip mats, floor mats, soft components in cup holders, fixation elements, and other designs requiring a hardness range between 60 and 90 Shore A. Kraiburg is also bringing its universal post-consumer recycled (PCR) TPE, containing up to 41% recyclate. The firm says the compounds are available in “natural colours” as well as in the grey colour characteristic of recycled plastics (which can be dyed as needed). The firm says the mechanics of these recycled-content grades “are in no way inferior to that of standard solutions”.  Automotive-K-2022 – Recyclate Molding

Foam party in Hall 6

Sabic, meanwhile, will introduce its latest line of PP compounds for foam injection molding (FIM). The new mineral-reinforced Sabic PPc F9005, PPc F9007 and PPc F9015 grades are being marketed for use in automotive interiors with complex geometries, such as door panels and trim, seat and trunk cladding, A/B/C/D pillar covers and center consoles.

The company says the compounds could help resolve aesthetic issues for foamed interior parts, removing streaking and swirling in low-gloss textured (grained) surfaces. Talc filler in these grades acts as a nucleator that promotes the generation of finer bubbles, which contribute to a consistent surface appearance, according to Sabic. Custom colouring is available.

According to a cradle-to-grave life cycle assessment study (pending third-party review), the new materials can help OEMs lower carbon dioxide (CO2) emissions by as much as 15 percent.

Different grades have been developed for various foam moulding techniques – and the choice of technique can have an impact on final part weight. Short-shot moulding, which uses the same tooling as an injection moulded part, can reduce weight by up to 10 percent, according to the Sabic. Automotive-K-2022 – Recyclate Molding

PPc 9007 is formulated for short-shot FIM and low-impact applications. Core-back moulding, which requires part redesign and new tooling, can lower weight by as much as 30 percent. Both Sabic PPc 9005 and PPc 9015 grades are formulated for core-back moulding and deliver medium stiffness and impact.

Automotive-K-2022 - Recyclate Molding

-Adapting Recyclate Molding to Customer Requirements

As part of a series of interviews leading-up to K 2022 Show, VDMA interviews Korbinian Kiesl, president of Billion.  Automotive-K-2022 – Recyclate Molding

VDMA, Germany’s mechanical engineering industry association, recently interviewed Korbinian Kiesl, president of the French injection molding company Billion, as part of a series of interviews leading up to the K Show in Dusseldorf this October. Kiesl described the rapid progression of recycling adoption since K 2019, and how Billion helps its customers meet appearance expectations while injection molding with recyclate.

VDMA: Mr. Kiesl, the circular economy requires that plastic recyclates can also be processed. How far advanced is Billion in this field?

Kiesl: The processing of recyclates has switched from being a vision to an everyday topic. These days, we no longer even ask ourselves whether our injection moulding machines can process recycled material. This is now a matter of course. Around 80 percent of our customers already run recyclates on our machines, some more, some less, but 80 percent is an immensely high proportion considering that almost no one was doing this a few years back. Three years ago, these customers were looking at K to see what was technically possible. They asked if we had any experience with these new materials. We were hardly ever asked this question about our experiences. Now, however, we are capable of dealing with concrete projects very quickly.

VDMA: What role does quality play for your customers?

Kiesl: The more homogeneous the recyclate, the better the results for our machines, both in terms of physical properties and appearance, aesthetics. This requires a very good separation of used plastics. The machine can do everything, it’s just a matter of whether you want to see the used recyclate or not. In the cosmetics industry – which represents an important customer group of ours – the use of recyclates was hardly conceivable until a few years ago. There, it was always a question of maintaining a flawless appearance. Today, there are customers in this industry who even want a package to show that it contains something recycled.  Automotive-K-2022 – Recyclate Molding

Adapting Recyclate Molding to Customer Requirements

-Green battery based on bacteria and sweat

Bacteria are being used to power a green revolution in personal electronics. Here, researchers have succeeded in engineering a biofilm capable of producing long-term, continuous electricity from human sweat.

The development comes from the University of Massachusetts Amherst and the focus is with next generation wearable electronics, including medical sensors to personal electronics for the consumer Automotive-K-2022 – Recyclate Molding

Central to the development isa biofilm that harvests the energy in evaporation and converts it to electricity. The biofilm is an engineered version of the bacterium Geobacter sulfurreducens (a Gram-negative metal and sulphur-reducing proteobacterium). This bacterium produces electricity and has been used previously in creating so-termed “microbial batteries” to power electrical devices.

A limitation with previous batteries using the organisms is with ensuring that G. sulfurreducens is fed a constant diet. This challenge is overcome with the biofilm, which contains the necessary nutrients, and it can run to provide more energy than a comparably sized battery.

The mechanism for electricity generation with biofilms of electroactive microbes like G. sulfurreducens is their ability to oxidize organic substrates with electron transfer to electrodes.

The biofilms were grown anaerobically in two-chambered H-cell systems with a continuous flow of medium with acetate as the electron donor and a polished graphite stick anode as the electron acceptor. Automotive-K-2022 – Recyclate Molding

G.sulfurreducens grows in colonies that look like thin mats, and each of the individual microbes connects to its neighbours through a series of natural nanowires. The researchers have harvested these mats and uses a laser to etch small circuits into the films. Once the films are etched, they are sandwiched between electrodes and sealed in a soft, sticky, breathable polymer.

Automotive-K-2022 - Recyclate Molding

Automotive-K-2022 – Recyclate Molding

PE-dairy-bottle – Textile-Effects 12-08-2022

PE-dairy-bottle – Textile-Effects 12-08-2022

PE-dairy-bottle – Textile-Effects

Crude Oil Prices Trend 

Crude Oil Prices Trend  Polyestertime

-Thailand’s Indorama Q2 earnings almost double on higher sales, improved margins

Indorama Ventures Limited (IVL)’s second-quarter sales and earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose sharply, year on year, on the back of strong sales volumes and improved profit margins, the Thai chemicals major said on Wednesday.

Net profit, which the company reports in its home currency, more than doubled during the quarter to baht (Bt) 20.3bn ($571m).

IVL (in millions) Q2 2022 Q2 2021 Change
Sales $5,451 $3,559 53%
EBITDA $1,010 $552 83%
Net profit Bt20,300 Bt8,340 143%


IVL said it had managed to offset high energy prices in Europe and the US thanks to the “combination of strong sales and improved margins”.

By division, the company said its largest unit producing polyethylene terephthalate (PET) and derivatives had posted 35% higher earnings during Q2, year on year, though they fell by 1% quarter on quarter.

“[The division, called Combined PET] delivered strong EBITDA … on high margins driven by seasonally strong demand, supply chain constraints and overall market tightness,” said IVL.

IVL’s Integrated Oxides and Derivatives (IOD) division also posted higher earnings, both year on year and quarter on quarter.

“[Within IOD] The Integrated Intermediates vertical was hindered by low ethylene crack margins, historically low integrated MEG [monoethylene glycol] margins, and the planned turnaround of two EO [ethylene oxide] units,” the company said.

However, sales and earnings fell year on year and quarter on quarter in the Fibers division as it took a hit from China’s lockdowns to contain the pandemic as well as disruption in Russia.  PE-dairy-bottle – Textile-Effects

PE-dairy-bottle - Textile-Effects

-US resin maker with record results / Acquisitions, high prices provide impetus

Acquisitions and high prices for polyethylene and PVC have helped Westlake (Houston, Texas, USA; to record results across the board: turnover, operating profit, and net profit were higher in the second quarter of 2022 than in any other three-month period.

On the one hand, the plastics producer reaped the fruits of its purchases, in particular the acquisition of Hexion’s epoxy resins business (see of 07.12.2021), as well as the takeover of the North America PVC activities of Australian building materials group Boral (see of 23.06.2021). On the other hand, the US group benefited from an economic environment where prices for PE and PVC climbed to new highs in April. Westlake described this understatedly as “solid market conditions due to strong demand and pricing dynamics”. As a result, revenues soared 57% year-on-year to USD 4.48 bn (EUR 4.4 bn) in the three months through June 2022, with EBITDA up 56% to USD 1.46 bn and net income surging 64% to USD 858 mn.

The increases are even more striking when looking at the half-year figures, as Q1 2021 had still been heavily battered by the pandemic. Turnover climbed 64% to USD 8.54 bn, and EBITDA surged 86% to USD 2.76 bn. At USD 2.21 bn, net profit was over twice as high as a year earlier. PE-dairy-bottle – Textile-Effects

The same is also reflected in the group’s segments: the raw materials division, Performance & Essential Materials, with its PE and PVC production units, increased half-year sales by 53% to USD 5.94 bn and EBITDA by 71% to USD 2.23 bn. The processing segment, Housing and Infrastructure Products, with its home construction products such as pipes and compounds, almost doubled sales to USD 2.6 bn, while EBITDA reached USD 568 mn, almost two-and-a-half times the previous year’s value.

US resin maker with record results / Acquisitions, high prices provide impetus

-Archroma to acquire Textile Effects Division of Huntsman

The Textile Effects division of Huntsman Corporation, which was formally placed up for sale at the end of 2021, will be acquired by global specialty chemicals firm, Archroma. The transaction’s estimated $718 million total enterprise value includes the assumption of $125 million in net unfunded pension obligations as of December 31, 2021. Huntsman will contribute up to $80 million in preferred equity toward the purchase, which SK Capital Partners will work to syndicate before the deal closes.

The Textile Effects segment reported revenues of $772 million and adjusted EBITDA of $94 million for the twelve months that ended on June 30, 2022. Huntsman estimates that the sale will generate about $50 million in cash taxes. Beginning in the third quarter of 2022, Huntsman expects to list Textile Effects as discontinued operations. The deal is anticipated to conclude in the first half of 2023, subject to regulatory clearances and other usual closing conditions. PE-dairy-bottle – Textile-Effects

Peter Huntsman, Chairman, President, and CEO, said that over the last seven months, they have carried out a thorough strategic evaluation of their Textile Effects division, which included in-depth conversations wide range of relevant parties. Their Board of Directors determined that SK Capital would be a better long-term owner of the firm than Huntsman and that the value they gave was in the best interests of their shareholders after carefully examining all available choices and potential proposals for the company. After the deal is completed, Textile Effects and SK Capital’s Archroma company will merge to form a global leader in textile chemicals and dyes, as well as a pioneer in sustainability and innovation.

PE-dairy-bottle - Textile-Effects

-Slovnaft to modernise and expand polypropylene production in Bratislava refinery investing up to eur 63 million

Slovnaft to invest EUR 63 million in modernisation and expansion of polypropylene production

comprehensive reconstruction will be carried out by the renowned German company Linde Engineering

polypropylene production capacity will be increased to 300 KTPY in favour of the most demanded products PE-dairy-bottle – Textile-Effects

modernisation of the existing production unit Polypropylene 3 (PP3) will reduce the volume of emissions

“One of the goals of our updated 2030+ strategy is to reduce the production of fossil fuels and strengthen the production of basic plastics. This investment confirms the path we have set out, increasing polypropylene production at the Bratislava refinery to 300 kilotons per year. Linde Engineering is our reliable partner. Less than 20 years ago the company built the PP3 polypropylene production unit in Slovnaft and now it will renovate and modernise it,” said Gabriel Szabó, Executive Vice President of Downstream at MOL Group.Bratislava, June 1, 2022 – Slovnaft invests EUR 63 million in the expansion and modernisation of polypropylene production. The investment, which is the third largest in the last 15 years, will increase production capacity, reduce emissions, improve safety and bring greater attractiveness to customers. Linde Engineering, a renowned German company, is the contractor for the comprehensive reconstruction of the existing PP3 production unit. The contract for the modernisation and expansion of the PP3 unit was signed today in Bratislava by representatives of both companies.

“The revamp will enable Slovnaft to meet rising demands from the polyolefin processing industry. The project is challenging given its complexity: Interdependency with other process facilities allows only a narrow time frame for a shutdown. With our proven expertise and best-in-class services, we will be able to complete all installation works, including construction, commissioning and testing,” said Juergen Nowicki, CEO Linde Engineering.  PE-dairy-bottle – Textile-Effects

The annual production capacity of polypropylene, sold on the market under the brand names of Tipplen and Tatren, will increase by 33 kilotons (kt) to 300 kt. The capacity increase will focus on strengthening the share of the most in-demand grades of polypropylene, which Slovnaft now produces in around 20 specifications. Storage and logistics infrastructure will also be increased. A further 16 storage silos will be added to the current 45. The adaptation of the technology will reduce emissions and the modern logistics infrastructure will improve safety at work.

PE-dairy-bottle - Textile-Effects

-Economical Chemical Recycling of Complex PET Waste in the Form of Active Packaging Materia

Abstract: Since millions of tons of packaging material cannot be recycled in conventional ways, most of it ends up in landfills or even dumped into the natural environment.

The researched methods of chemical depolymerization therefore open a new perspective for the recycling of various PET materials, which are especially important for packaging. Food preservative packaging materials made from PET plastics are complex, and their wastes are often contaminated, so there are no sophisti‐cated solutions for them in the recycling industry. PE-dairy-bottle – Textile-Effects

After integrating the biopolymer chitosan, which is derived from natural chitin, as an active surface additive in PET materials, we discovered that it not only enriches the packaging material as a microbial inhibitor to reduce the bacteria Staphylococcus aureus and Escherichia coli, thus extending the shelf life of the contained food, but also enables economical chemical recycling by alkaline or neutral hydrolysis, which is an environmentally friendly process.

Alkaline hydrolysis at a high temperature and pressure completely depolymerizes chitosan‐coated PET packaging materials into pure terephthalic acid and charcoal.

The products were characterized by Fourier‐transform infrared spectroscopy, proton nuclear magnetic resonance spectroscopy, and elemental analysis. The resulting reusable material represents raw materials in chemical, plastic, textile, and other industries, in addition to the antimicrobial function and recyclability itself.

  1. Introduction

In Europe, about 40% of plastic is used for packaging, which, in turn, becomes immediate waste [1]. The production and consumption of plastic materials in the food pack‐

aging industry increases from day to day [2], with polyethylene terephthalate (PET) being the most widely used due to its mechanical, chemical, and biochemical properties; transparency; flexibility; technical use; recyclability; and economical significance. It occurs in the form of sheets, films, fibers, composites, etc. [3].

It is estimated that more than 359 million tons of plastic is produced annually.

More than a third of the total plastics produced are intended for the packaging sector. Most of the food packaging material is still landfilled, and a lot of it is even dumped in the environment [4,5]. Furthermore, food packaging is one of the most widespread applications, and its benefits have led to significant development and innovations in this area in recent years [6,7]. PE-dairy-bottle – Textile-Effects

For example, in order to introduce the preservation from the PET food packaging, different additives, mostly synthetic ones, are used to prolong the shelf life of the products packaged.

The integration (as fillers or coatings) of additives lead to the PET materials’ heterogeneity, resulting in more complex and contaminated waste [8]. With mechanical recycling being the most used, such mentioned waste is thus inappropriate and therefore subjected to the problematic landfilling.

Accordingly, there are two problems in the whole end‐of‐life analytical aspect of the PET food packaging: environmentally unfriendly preservation additives, used in PET coating, and the recyclability of complex PET packaging materials.

Keeping that in mind, a complete solution with a natural additive to the PET material that would equivalently enhance the preservation of food, possibly with an environmen‐ tally friendly recycling process that would fully degrade the complex material to its basic compounds, was the perfect milestone for our research. This growing demand for natural substances to be applied as activators in the development of active packaging is also strongly in accordance with an increased health and environmental awareness, as well as legislation requirements. PE-dairy-bottle – Textile-Effects

PE-dairy-bottle - Textile-Effects

-Lactalis Nestlé incorporates recycled PE in dairy bottle products through Repsol partnership

Lactalis Nestlé has incorporated up to 30% recycled plastic in its chilled dairy product bottles through a new partnership with Repsol. The Repsol Reciclex range uses cutting-edge technologies to recycle plastic waste that cannot be mechanically recycled for use in food containers.

The Nestlé Kefir range’s bottles for Spain and Portugal and the Yoggi brand’s drinking yogurt bottles – marketed in Portugal and produced in Guadalajara, Spain – contain 30% and 10% recycled material, respectively.

Since June, Lactalis Nestlé, the yogurt and dairy dessert division of the Lactalis Group, has been using recycled plastic in these PE bottles. Repsol’s circular materials have the ISCC PLUS certification that ensures their traceability. The contents are certified according to the ISCC Plus mass balance approach. PE-dairy-bottle – Textile-Effects

The EU Plastics Strategy requires all packaging to be recyclable or reusable in an economically viable way by 2030.

Advanced recycling

Repsol uses advanced recycling technologies to manufacture these circular materials for food contact use with the same quality as virgin plastic.

“Being able to use recycled plastic to manufacture our bottles represents an important step in the way to circularity,” says Lluis Farré, general manager for southern Europe at Lactalis Nestlé. Advanced recycling technologies continue to proliferate worldwide.

“However, everyone’s commitment is the key to this initiative’s success, starting with the consumer, by separating the label from the bottle and disposing of both elements in the yellow container, to the agents such as Repsol, Logoplaste, and Lactalis Nestlé, who jointly promote the circularity of packaging in direct contact with food.”

“We thank Lactalis Nestlé, a benchmark in its sector, for its trust in Repsol to turn this important alliance into a reality and thus enable us to achieve our shared goals in Food Safety and Sustainability and boost our commitment to support our customers in their transition to circularity,” adds Pablo Giner, PE business director at Repsol.

ISCC Plus certification

The entire value chain, from Repsol as the supplier of the material, through to Logoplaste, the manufacturer of the bottles, and Lactalis Nestlé, responsible for the product and the filling of the containers, has the ISCC Plus certification, which ensures the traceability of the recycled materials used throughout the process. PE-dairy-bottle – Textile-Effects

PE-dairy-bottle - Textile-Effects

-German chems sector under pressure from gas prices, could persist through H1 2023

Germany’s chemicals industry has hit a multiyear low in business expectations due to the steep increase in gas prices, according to the Ifo Institute on Tuesday.

Gas prices have soared since the Russian invasion of Ukraine in the first quarter of 2022, as the war has jeopardised security of supply in Europe and gas flows from pipelines in Russia have come under pressure.

Business expectations for the chemicals industry fell to -44.4 points in July, compared with 11.8 points a year prior. PE-dairy-bottle – Textile-Effects

“Natural gas accounts for 44 percent of energy consumption in the chemical industry. It also plays an important role in product manufacturing: around 30 percent of all chemical products require the use of natural gas,” said Ifo industry expert Anna Wolf.

As around half of Germany’s gas imports come from Russia, producers operating in the country may be more at risk than at other European locations.

Sentiment is exacerbated by disruptions in the supply chain, with more than half of German chemicals producers experiencing material shortages, according to the Ifo, which they expect to carry over into the first half of 2023 at least.

Wolf added that import prices for other inorganic basic chemicals rose more than 65% in May compared to the previous year, with fertilizers and nitrogen compounds recording 170% increases.

In the same period, exports of chemicals products from Germany to Russia dropped 49%, and to Ukraine fell 40% in May 2022 compared with May 2021, and the impact of this is set to persist.

German chems sector under pressure from gas prices, could persist through H1 2023

-PIE Readers’ Survey: Pessimism at the forefront in Europe / Half of respondents predict worse business for rest of 2022 / Staffing a non-issue / German-speaking Europe not threatened by global disruptions

To gauge how business is developing in the European plastics industry, conducted its 8th Readers’ Survey in July. The questionnaire was available to subscribers and other industry players, with more than 220 participants from across Europe taking part in the poll. PE-dairy-bottle – Textile-Effects

Once again, we present the results of the survey, an exclusive executive summary with key statements from Europe’s plastics industry on the latest business performances, trends, and challenges in turbulent times. The details of the results are part of our online evaluation, where answers can be assessed individually according to individual requirements.

European companies more pessimistic than ever

What was the situation in Europe in the first half of 2022, and how is the rest of the year looking? Just under half of all companies surveyed in Europe reported improved business in the first half versus the last half of 2021. Just under a quarter reported a worse outcome.

The continuing consequences of the pandemic, with huge bottlenecks in supply chains, and then the war in Ukraine have impacted both the people and the economy. Energy prices are skyrocketing, and planning security is low. Since the first business survey in 2019, there has never been such a negative assessment of business activities across Europe, and the outlook has never been so pessimistic.

This is particularly noticeable among French managers: 40% reported a downturn compared to H2 2021, although 47% also reported improvement at their companies. In the Nordic region and in Spain & Portugal, assessments were more positive: in each case, 57% reported better business in H1 2022. But in Central & Eastern Europe, only one-third said business was better. PE-dairy-bottle – Textile-Effects

No light at the end of the tunnel?

Almost half of all survey participants said they expect business to worsen in H2 2022. Just under a quarter expressed hopes doing better despite the high energy costs and the uncertainty surrounding oil and gas supplies.

PIE Readers' Survey: Pessimism at the forefront in Europe / Half of respondents predict worse business for rest of 2022 / Staffing a non-issue / German-speaking Europe not threatened by global disruptions

PE-dairy-bottle – Textile-Effects

Bioplastics – Recycling-Technology 11-08-2022