Plastic production – China, with its excess production capacity, is able to export plastic at very competitive prices. This creates pressure on European producers, forcing them to compete with low-cost products, often of lower quality. European companies therefore have to compete not only on price, but also on quality and innovation 09-01-2025 - Archive
Plastic production
Crude Oil Prices
Trend Amount of plastic produced globally in 2024
In 2024, the world is expected to generate 220 million tonnes of plastic waste. This figure emerged from a report by the Swiss non-profit Earth Action, which also indicated that this year’s Plastic Overshoot Day has been set for September 5, marking the day on which plastic waste production exceeded global recycling capacity.
The growth in plastic production is constantly increasing and it is estimated that global plastic consumption could reach 500 million tonnes annually in the coming years. However, only a fraction of this waste is actually recycled, with around 10% of plastic waste finding a new life through recycling. Plastic production
In summary, the global plastic situation in 2024 highlights a significant increase in waste generation and management, with serious implications for the environment and public health.
How does plastic production in 2024 compare to 2023
In 2024, global plastic production increased by 3.4% compared to 2023, reaching 413.8 million tonnes. In contrast, in 2023, production was 400 million tonnes. This increase comes despite a significant contraction in production in Europe, which saw a decline of 8.3%, reducing its production to 54 million tonnes.
Globally, the growth in plastic production is mainly attributed to major producers such as China and the United States, which continue to dominate the market. China, in particular, accounts for over 33% of global production. Plastic production
In summary, while the world saw an increase in plastic production in 2024 compared to the previous year, Europe faced significant challenges with a decrease in its market share and a decline in production.
What are the main differences between plastic production in Europe and China in 2024
In 2024, plastic production in Europe and China shows significant differences, both in terms of volume and market dynamics.
Total Production
China: China continues to dominate the global plastics market, producing over 33% of the world’s plastics. The country’s production capacity has grown significantly, with plants operating at high levels despite stagnant domestic demand. By the end of 2024, China is expected to have a production capacity equal to that of Europe, Japan and South Korea combined. Plastic production
Europe: In contrast, plastic production in the European Union has fallen by 8.3% to 54 million tonnes. Europe currently accounts for only 12% of global production.
Costs and Competitiveness
China: Production costs in China are significantly lower than in Europe, thanks to favorable industrial policies and greater availability of raw materials at competitive prices. This has led to an increase in exports of cheap plastics to Europe.
Europe: The European industry faces challenges related to high energy and raw material costs, making it difficult to compete with Chinese import prices. In addition, Europe is seeing a decline in its market share. Plastic production
Recycling and Sustainability
China: China has recently started to become a net exporter of polypropylene and other plastics, but its recycling capacity is challenged by overcapacity and weak domestic demand.
Europe: Despite the challenges, Europe is a leader in plastic circularity, with a higher share of recycled materials (13.2% of total production) than the global average. However, competition with imported recycled polymers is negatively impacting the domestic recycling market.
Conclusions
In summary, while China continues to expand its plastics production and capacity, Europe faces significant challenges related to competitiveness and sustainability. The main difference lies in production capacity and associated costs, with China benefiting from a favorable environment for plastics production and export. Plastic production
Topsoe de-risks Soec electrolyzers for green hydrogen through insurance partnership with new energy risk
- New Energy Risk (NER) has been selected as the preferred insurance partner for Topsoe’s SOEC hydrogen electrolyzer products.
- Partnering with NER represents an important milestone for the deployment of Topsoe’s solid oxide electrolyzer cells (SOEC) as it de-risks their development and customers’ green hydrogen and Power-to-X projects.
- Providing insurance coverage for electrolysis technologies such as Topsoe’s SOEC’s can further improve rollout timelines of green hydrogen projects to deliver on growing global demand.
Topsoe, a global leader in carbon emission reduction technologies, has chosen NER, a provider of technology performance insurance, as the preferred insurance partner for Topsoe’s SOEC hydrogen electrolyzer products. Plastic production
The partnership follows NER’s completion of detailed technical due diligence of Topsoe’s SOEC electrolyzer technology and enables Topsoe’s customers to deploy NER’s technology performance insurance on projects using SOEC technology– enhancing bankability and enabling a lower cost of capital.
The completion of technical due diligence streamlines the offering of performance insurance to eligible projects, who can benefit from improved timelines and increased certainty of financing success.
Sundus Cordelia Ramli, CCO Power-to-X at Topsoe, said:
“Our partnership with NER is an important milestone to accelerate the delivery of our customers’ green hydrogen projects and is a testament to the confidence in our technology. Plastic production
How China’s overcapacity affects European competitiveness in the plastics sector
Overcapacity in plastic production in China has a significant impact on the competitiveness of European companies in the sector
Here are the main consequences:
Increased Competition
China, with its excess production capacity, is able to export plastic at very competitive prices. This creates pressure on European producers, forcing them to compete with low-cost products, often of lower quality. European companies therefore have to compete not only on price, but also on quality and innovation.
Risk of Dumping
Chinese overcapacity has led to dumping practices, where Chinese producers sell plastic at prices lower than production costs. This imbalance not only distorts the market, but also puts European companies at risk, which have to face unfair competition. European authorities are already considering protectionist measures to counter this phenomenon.
Decrease in Local Production
Due to the competitiveness of Chinese products, the plastics industry in Europe has seen its market share decline from 20% in 2012 to 14% in 2022. This decline is accompanied by an increase in plastic imports, further reducing local production and threatening employment in the sector. Plastic production
Impacts on Recycling
The availability of cheap plastics may discourage recycling in Europe. With Chinese virgin materials cheaper, companies may prefer to use new plastics rather than invest in recycling, compromising efforts to achieve greater environmental sustainability.
Policy Responses
In response to these challenges, the European Union is exploring policies to protect its industries. This includes investigating Chinese state subsidies and introducing countervailing tariffs to balance the market. These measures aim to ensure fair competition and support local production.
In summary, China’s overcapacity in plastic production represents a significant challenge for the European industry, affecting competitiveness, the labor market and sustainability efforts.
What are European companies’ strategies to address Chinese competition in plastic production? Plastic production
Mitsubishi Chemical Cancels Geismar MMA Monomer Plant Project
Mitsubishi Chemical Corporation, a Mitsubishi Chemical Group subsidiary, has decided to cancel its proposed methyl methacrylate (MMA) monomer plant in Geismar, Louisiana.
Since December 2020, the company had planned a 350,000-ton MMA monomer facility using its proprietary Alpha Process technology. A construction site was secured, and preliminary engineering and regulatory approvals were underway. However, the project was abandoned due to insufficient demand from existing U.S. MMA production sites and rising capital costs from inflation. Additionally, the Group failed to secure long-term customer commitments after implementing the plan.
Despite this setback, Mitsubishi Chemical aims to strengthen its global MMA production by optimizing existing operations and exploring new business bases. The company plans to focus on high-value applications and innovations under its “New Medium-Term Management Plan 2029,” unveiled in November 2024. Plastic production
As a result of halting the project, the Group expects to record a 20-billion-yen impairment loss for the third fiscal quarter ending March 2025, stemming from expenses incurred. The exact financial impact remains under review.
Packaging Innovations & Empack 2025 show preview
In this edition of the Spotlight, Easyfairs tells us how Packaging Innovations & Empack 2025 will unite the ‘brightest minds and cutting-edge technologies’ in the packaging industry at the NEC Birmingham on 12th-13th February.
Forget the fireworks and Jools Holland’s Hootenanny – the packaging industry’s new year doesn’t truly begin until Packaging Innovations & Empack opens its doors. And, with the packaging industry set to go through one of the most consequential years in its history in 2025, it can’t come a moment too soon. Plastic production
With seismic new regulations on the horizon, a ticking clock set by the 2025 and 2030 sustainability targets of brands across the world, and a dash of geopolitical uncertainty thrown into the mix, many in the industry are seeking inspiration that they can use to develop the innovations to see them through this turbulent period.
And, if it’s inspiration you’re looking for, there’s no better place to be than Packaging Innovations & Empack.
As the premier event for the entire packaging supply chain, Packaging Innovations & Empack 2025 offers a unique opportunity to connect, collaborate, and innovate. With over 430 exhibitors and more than 7,000 visitors expected, attendees will gain exclusive access to the latest trends and technologies in packaging design, materials, machinery, and sustainability. Plastic production
