Day: 2 February 2023

European thermoplastic prices

-Prices under pressure from weak demand and lower costs

In December, European standard thermoplastic prices declined across the board as a result of lower feedstock costs and weak demand. The already weak demand picture was further exacerbated by the short production month and converters reducing stock levels prior to preparation of the end-of-year balance sheet.

Polyethylene prices fell in line with the €25/tonne reductions in the ethylene reference price.  Polypropylene prices were down by just less than the €30/tonne reduction in the propylene reference price. Base PVC prices fell for the eighth month in a row with a reduction of €60/tonne. Polystyrene prices saw a triple-digit reduction following the €132/tonne fall in the styrene monomer reference price.

PET prices declined by a mere €20/tonne as producers’ efforts to reduce stock levels appeared at last to be paying off. European thermoplastic prices

Demand very low

In December, polymer demand continued at a very low level across most end-use markets. While demand has picked up slightly for the food and pharmaceuticals packaging sectors, demand from most other markets is well below normal levels. In December, order activity was further constrained by the short production month and by converters reducing stock levels prior to preparation of their year-end balance sheets.

Supply tight

European producers have trimmed production and brought forward plant maintenance programmes to counteract the low demand. There is however sufficient material available to meet the needs of converters. Supply has also been supported by a steady inflow of imported material. The high European prices and lower freight rates are tempting producers to divert more of their cargoes to Europe.

A selection of the latest production developments is presented below:

Indorama Ventures reported that a fire stopped operations at the San Roque, Spain plant on New Year’s day.  European thermoplastic prices

The company has subsequently announced that they were planning to complete safety protocols and plan to start production of PET and PTA sequentially, reaching full operations by end January

Four PP lines operated by Borealis in Belgium will undergo planned maintenance programmes commencing 2nd February and due to restart 2nd March

Trinseo plans to discontinue styrene production at its 300,000/tonnes/year plant at Böhlen site in Saxony, Germany. The plant is too small and unprofitable on an international scale, the company explained. High gas prices and competition from rivals’ new capacities have exacerbated the situation

A fire at the Versalis site at  Dunkerque, France on the weekend of 10th December has shut down the cracker and also the polyolefin downstream plants

The LyondellBasell cracker in Berre, France, offline since a fire in August 2022, will not go back onstream until early 2023.  European thermoplastic prices

January outlook

While few contract prices had been concluded at time of conducting the prices research during the first week of January, most market observers were expecting European standard thermoplastic price developments to show a mixed picture this month.Polyethylene and polypropylene prices are likely to fall sharply after both ethylene and propylene reference prices settled down by €95/tonne compared to the previous month. PVC prices are also likely to fall in line with the proportionate impact of the lower ethylene price on the PVC cost base.

PS prices, on the other hand, are expected to increase sharply this month following a surge of €115/tonne in the styrene monomer reference price. PET prices are expected to stabilise as costs fall, imports become scarcer and producers maintain strict production controls.

Supply remains tight across all polymer classes while demand should recover gradually as converters restock.

Western European standard thermoplastic prices, €/tonne  European thermoplastic prices

L/LDPE

In December, L/LDPE prices fell €20-25/tonne due to the lower ethylene reference price (down €25/tonne), the short production month and very weak demand.

European producers maintained strict production controls and supply was generally low. Imports from the USA and Asia, however, plugged any gaps in the supply position. The already weak demand was made even worse by the short production month and converters not buying additional stock for accounting reasons.

A reduction of €95/tonne for the January ethylene reference cost heralds a sharp reduction for L/LDPE prices at the start of the New Year. While few deals had been concluded at time of writing, most market observers were expecting L/LDPE prices to tumble more or less in line with the lower cost settlement. Demand is likely to pick up slowly while higher imports are supporting supply.

HDPE

In December, HDPE prices fell due to weak demand and a reduction of €25/tonne for the ethylene reference price.

Blow moulding and blown film grades saw price reductions in the order of €20-25/tonne while injection moulding prices fell by €10/tonne. European thermoplastic prices

Material availability remained tight as producers maintained strict output controls. Any supply gaps was however made up by a steady inflow of imports from Asia.

The very weak demand position was made even worse by the short production month and converters buying the absolute minimum with an eye on their end-of-year stock position.

A reduction of €95/tonne for the January ethylene reference cost heralds a sharp reduction for HDPE prices at the start of the New Year. While few deals had been concluded at time of writing, most market observers were expecting HDPE prices to tumble more or less in line with the lower cost settlement. Demand is likely to pick up slowly while higher imports will support supply. European thermoplastic prices

PP

PP prices fell by €20/tonne in December as a result of weak demand and a reduction of €30/tonne for the propylene reference price.

Supply remained tight due to planned and unplanned plant maintenance turnarounds and the maintenance of strict production curbs. Any supply gaps were however adequately filled by a steady inflow of imports from Asia. The very weak demand position was exacerbated by the short production month and converters buying the absolute minimum with an eye on their end-of-year stock position.

A reduction of €95/tonne for the January propylene reference price heralds a sharp reduction for PP prices at the start of the New Year. While few deals had been concluded at time of writing, most market observers were expecting PP prices to tumble more or less in line with the lower propylene cost settlement. Demand is likely to pick up slowly while higher imports will support supply.

PVC

In December, base PVC prices declined €60/tonne compared to the previous month while flexible and rigid PVC compound prices slipped just €40-45/tonne as additive costs fell slightly.  European thermoplastic prices

Material availability was adequate despite some planned plant maintenance turnarounds and strict production controls as any supply gaps were adequately filled by a steady inflow of imports from Asia. The very weak demand position was exacerbated by the short production month and converters buying the absolute minimum with an eye on their end-of-year stock position.

PVC prices remain under pressure in January as a result of the sharp €95/tonne reduction in the ethylene reference price and competition from inexpensive Asian imports. While few deals had been concluded at time of writing, most market observers were expecting base PVC prices to fall more or less in line with the lower cost base.

PS

In December, polystyrene producers were not prepared to give away more than a part of the €132/tonne reduction for the styrene monomer reference price due to rising energy costs. GPPS prices dipped by just over €100/tonne with HIPS prices down by €95/tonne.

Supply remains tight due to production cuts, yet there was sufficient material to meet the low demand.

Demand was weak because of the short production month and converters keeping an eye on stock levels for year-end accounting reasons. European thermoplastic prices

The January styrene monomer reference price settlement soared by €115/tonne due to tight supply and a surge in benzene costs. PS prices are expected to increase sharply this month and major producer have announced planned price hikes of €120-150/tonne. Supply remains tight while demand is expected to pick up as converters begin to replenish their inventories.

PET

The European PET market returned to calmer waters in December following the turmoil of the previous month. PET prices fell by around €20/tonne last month compared to a €40/tonne reduction for the November paraxylene contract price.

PET producers attempts to curb production and stabilise supply appears to be working as producers’ inventories finally moved downwards. There was also fewer competitively-priced Asian imports available last month.

PET demand was very low as December, a traditionally a weak month for beverage bottle production. European thermoplastic prices

There are signs that the European PET market may be about to turn a corner in January after the recent turbulence. PET prices are expected to stabilise as costs fall, imports become scarcer and producers maintain strict production controls. As demand reached rock bottom last month, producers are more optimistic about a gradual recovery in order activity.

More.. 

European thermoplastic prices

Bioplastics Benefits – rPET-Fabric 01-02-2023

 

 

R-PET – Circular polymers

Crude Oil Prices Trend

-SIBUR ceased to be a co-owner of the Italian Manucor

SIBUR has ceased to be a co-owner of the Italian manufacturer of BOPP film Manucor S.p.A., follows from the materials of the Italian company, according to Vedomosti.

Manucor indicates that the agreement was completed on January 16, as a result of which Biaxplen, a member of SIBUR, withdrew from its shareholders.

The owner of 5% of Manucor was the company L&M S.p.A., specially created by the head of Manucor Luigi Scagliotti and the chairman of the board of directors of the company Matteo Rossini. Another shareholder, Loren SPV S.r.l., increased its stake to 95%. The amount of the transaction is not specified.

SIBUR acquired 50% of Manucor, which is one of the leading BOPP film manufacturers in the EU, in 2019.

Manucor explains that the deal was carried out in connection with geopolitical tensions related to military operations in Ukraine.

Earlier it was reported that in the autumn of last year, Biaxplen (part of SIBUR Holding) began developing new types of BOPP films (biaxially-oriented films made of polypropylene) in order to meet the changing needs of customers.

Also, Biaxplen modernized the extrusion lines produced by the German Bruckner, designed for the production of biaxially-oriented film (BOPP film).

Manucor was established in 1987. Until 2008, it was called Manulifilm S.p.A. The company owns a plant in Italy with a capacity of 100 thousand tons per year.

Biaxplen is a leading manufacturer of biaxially oriented films (BOPP) in Russia.

-Recyclable materials for cars with additive specialties from Evonik

• Evonik supports BMW’s “Future Sustainable Car Materials (FSCM)” project with its plastics specialty chemicals expertise
• Consortium of top-class industrial and scientific partners pools know-how for circular solutions in vehicle production
• German Federal Ministry for Economic Affairs and Climate Protection (BMWK) supports the project

A consortium of 19 leading industrial companies and research institutes, including the BMW Group, Evonik, Thyssenkrupp, the Fraunhofer Institute, and the Technical University of Munich, has set itself the goal of developing new processes for using sustainable materials for circular automotive production. Evonik is contributing its expertise in plastics and additives for recycling to the project. The project, which is funded for three years by the German Federal Ministry of Economics and Climate Protection (BMWK), was launched at the end of last year.

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-Shinkong and Mitsubishi plan to increase R-PET capacity in Taiwan

Thai Shinkong Industry Corporation (TSIC), which is a joint venture between Taiwan’s Shinkong and Japan’s Mitsubishi, will hike the nameplate capacity of its recycled polyethylene terephthalate (R-PET) facility in Thailand, said the company.

As more customers and business partners have expressed buying interest for the materials, TSIC increased output to 140,000 tonnes/year from the initially planned 70,000 tonnes/year. R-PET – Circular polymers

The plant will use the Uhde Inventa-Fischer (UIF) flakes-to-resin (FTR) technology to use R-PET flakes, combined with purified terephthalic acid (PTA) and mono-ethylene glycol (MEG) to produce chemically recycled R-PET pellets.

Previously encountering delays due to the surge of COVID-19 cases in Thailand in the past years, the facility is expected to commence production by end-February to April.

Although the facility will not directly compete for post-consumer bales from the local market, it will secure R-PET flakes which would indirectly hike demand for bales.

We remind, Mitsubishi Chemical Group Corporation announced the start of labormanagement consultation on cessation of the production of methacrylates (MMA) at Mitsubishi Chemical UK’s Cassel, said the company. Site, and announced today that its Corporate Executive Officers Committee resolved in the day to cease the production of methacrylates at its Cassel Site subject to completion of the labor-management consultation. R-PET – Circular polymers

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-Prices under pressure from weak demand and lower costs

In December, European standard thermoplastic prices declined across the board as a result of lower feedstock costs and weak demand. The already weak demand picture was further exacerbated by the short production month and converters reducing stock levels prior to preparation of the end-of-year balance sheet.

Polyethylene prices fell in line with the €25/tonne reductions in the ethylene reference price.  Polypropylene prices were down by just less than the €30/tonne reduction in the propylene reference price. Base PVC prices fell for the eighth month in a row with a reduction of €60/tonne. Polystyrene prices saw a triple-digit reduction following the €132/tonne fall in the styrene monomer reference price.

PET prices declined by a mere €20/tonne as producers’ efforts to reduce stock levels appeared at last to be paying off. R-PET – Circular polymers

More.. 

-Alpla PET recycling joint venture successfully started up

Romanian facility supplies 18,000 tonnes of rPET per year

After a construction time of nine months and investment of around 7.5 million euros, Austrian plastics manufacturer and recycler Alpla, together with its partners Ecohelp SRL (Romania) and United Polymer Trading AG (Switzerland), have started production at their joint recycling plant in Targu Mures, Romania. The plant, located adjacent to the existing Ecohelp site in Targu Mures, has an annual capacity of around 18,000 tonnes of post-consumer-recycled PET (rPET) per year and aims to supply the southeast European market with food-grade rPET. The project has led to the creation of around 20 new jobs.

The joint venture partners will host the official opening ceremony on 4 May 2023.

“The growing importance of local recycling processes calls for increased commitment in the region. Together with our partners, we combine strengths, increase the processing quality of the recycled PET material and ensure the long-term supply of the southeast European market,’ said Georg Lässer, Director Business Development, Procurement and Sales Recycling at Alpla. R-PET – Circular polymers

With the first rPET extrusion line in operation, already, the potential for expansion is being explored, as the plant has space for a second extrusion line, which would double capacity.

The present joint venture was established in autumn 2021, with each partner bringing to the venture their own specific skill set. Alpla is contributing its many years of expertise as a global recycling specialist and packaging manufacturer to the partnership; in the case of United Polymer Trading (UPT), the endeavour is benefitting from that company’s  extensive distribution network for plastics and recycled material. Locally-based Ecohelp supplies the input material in the form of recycled PET flakes from PET bottles from household waste. The food-grade rPET granulate obtained from this process then serves as the starting material for new preforms and bottles.

The facility fills a gap in the market for high-quality recycled material in Romania and neighbouring countries, according to Mihail Moloiu, General Manager at PET Recycling Team Targu Mures. In addition, the new recycling plant has created around 20 new jobs.

Alpla is investing 50 million euros a year until 2025 in the ongoing expansion of its recycling activities and promotion of complete recycling in as many parts of the world as possible. In total, the annual production capacity of Alpla’s recycling companies and collaborations around the world amounts to approximately 203,000 tonnes of rPET and 74,000 tonnes of rHDPE. R-PET – Circular polymers

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-Rising emphasis on single-use plastics management and recycling activities to increase circular polymers demand

Global circular polymers industry is expected to be valued at around $8 billion by 2032, according to estimates from a Global Market Insights Inc. report

Circular systems market is gaining massive attention with businesses across the globe seeking to solve the plastic conundrum and limit the use of synthetic polymers with serious environmental impacts. The popularity of recycled or circular polymers is further slated to increase, considering the strong global focus on curbing the usage of single-use plastics. R-PET – Circular polymers

Additionally, there has been increased spending on plastic recycling plants globally. For instance, in October 2021, Trex announced an investment of $400 million in a polyethylene (PE) recycling and production site at the Little Rock Port. Initiatives such as these could bolster the productivity of circular economy polymers developers.

Increasing acceptance for sustainable agriculture and packaging approaches may boost interest in circular polymer solutions

Plastics have become an indispensable part of industries like agriculture to reduce crop loss and enhance production, among other applications. Agricultural plastics are, however, emerging as a threat to environmental sustainability. These factors are stimulating the adoption of eco-friendly alternatives, such as circular polymer materials, in the agricultural sector. Based on data from Global Market Insights Inc., the agriculture segment accounted for above 10% of the circular polymers industry share in 2021.

Apart from agriculture, the packaging industry is one of the major end-users of recycled polymers. For example, The Coca-Cola Company has committed to making all plastic bottles reusable, recyclable, and compostable by 2025. Furthermore, there has been a shifting consumer preference, with sustainable packaging emerging as a vital part of shopping experiences. R-PET – Circular polymers

Based on a Drapers’ report, 64% of UK consumers are more likely to purchase goods from retailers that offer sustainable packaging. Moreover, 50% of the consumers are willing to pay more for this type of packaging. Factors like these could bolster the use of quality circular polymers for packaging applications.

Circular polymers to gain traction amid a potential increase in polyethylene and auto parts recycling in Europe

Regions like Europe have the potential to expand the recycling capabilities of polymers such as polyethylene. Plastics Recyclers Europe, for example, has observed great potential in recycling PE, which is one of the most processed plastics at over 9 million tons per year in the EU. With the increasing expenditure on packaging solutions due to the booming e-commerce, the recycling rate of polymers could increase, generating a favorable outlook for the circular polymers industry.

Meanwhile, Schumacher Packaging Group has announced plans to invest nearly $736 million between 2021 and 2025, with over $315.4 million earmarked for investment in Germany alone, which could contribute to the rising popularity of circular polymers as a packaging material. Several EU legislations have also emphasized the use of recycled auto parts as a sustainability solution in the region. With over 65 million new cars being sold per year worldwide, reusing and recycling plastic auto parts has become an important element in the fight against pollution, thus bolstering the circular polymers market outlook. R-PET – Circular polymers

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-NexKemia acquires Quebec-based polystyrene recycler Eco-Captation

Canada-based expandable polystyrene manufacturer NexKemia has finalized the purchase of Eco-Captation, a prominent polystyrene waste collection and recycling company in Prévost, Quebec.

Eco-Captation is a recycler of polystyrene wastes in Quebec and has a special focus on post-consumer recycled materials. R-PET – Circular polymers

The company combines artificial intelligence-enhanced optical sorting technology with a seamless mechanical recycling process to convert plastic waste into high-quality raw materials made with post-consumer recycled material.

“We are proud to be welcoming Eco-Captation into the Integreon family, and look forward to growing as we learn from their substantial recycling expertise,” says Maurice Barakat, president and chairman of Integreon Global. “We are excited to employ technology to reduce the carbon footprint of the packaging and insulation solutions developed for customers.”

For NexKemia, Eco-Captation will become an integral part of developing an end-to-end circular model for EPS solutions.

“Scaling up Eco-Captation’s technologies will allow NexKemia to rapidly grow our capacity for sustainable expandable polystyrene (EPS) solutions that incorporate a significant percentage of post-consumer recycled material,” says Pierre Beaudry, general manager of NexKemia. R-PET – Circular polymers

The agreement represents another step for NexKemia as a mechanical recycling hub. The products resulting from the Eco-Captation acquisition will be used by NexKemia and its parent company, Integreon Global, in day-to-day applications where sustainability and circularity elements are essential, including high-performance cold chain packaging solutions and construction material.

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R-PET – Circular polymers

Bioplastics Benefits – rPET-Fabric 01-02-2023