PET Bottle Chip – Will both polymer and raw materials increase strongly? 31-07-2023

PET Bottle Chip

Petrochemicals Recycled Polyester – Will both polymer and raw materials increase strongly? 


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Crude Oil Prices Trend 

Crude Oil Prices Trend by Polyestertime

Crude Oil Prices Trend by Polyestertime

What is the duration of the waste tire pyrolysis process?

The time required for the waste tire pyrolysis process varies depending on the capacity and configuration of the pyrolysis machines. Let’s discuss the processing times for two common models: the 100/500KG and 10/12TPD waste tire pyrolysis machines.

  • 100/500KG waste tire pyrolysis machine: These machines have smaller processing capacities and simpler configurations, resulting in shorter pyrolysis times. For the 100KG waste tire pyrolysis machine, one batch takes approximately 3-4 hours, while the 500KG waste tire pyrolysis machine requires about 7-8 hours for a single batch.
  • 10/12TPD waste tire pyrolysis machine: The 10/12TPD waste tire pyrolysis machine takes around 22 hours for the pyrolysis process. The processing time is mainly influenced by the equipment’s configurations:
  • Feeding: There are two methods for feeding tires into the machine: a) Manual feeding requires 3-4 workers and takes about 3 hours. This option is suitable for areas with low labor costs. b) Auto-feeder with a grab machine requires only two workers and completes the feeding process in about 1-1.5 hours, saving time and labor.
  • Heating Stage: The pyrolysis oil and oil burner are used to heat the machine to around 160 degrees Celsius, after which stable tail gas is produced. The machine is then mainly heated by the tail gas, maintaining a temperature of about 280-320 degrees Celsius. This stage takes approximately 8-10 hours.
  • Cooling Time of Reactor: The cooling process involves two steps: a) Using a vacuum device to pump out residual oil gas from the reactor, which takes about 1 hour before discharging the carbon black. b) The traditional pyrolysis machine design requires about 7 hours for cooling, but DOING waste tire pyrolysis machines are equipped with a fast cooling system, reducing the cooling time to about 4 hours. PET Bottle Chip
  • Discharging Carbon Black: After cooling, the carbon black is discharged, and this step takes around 1.5-2 hours.

Several other factors can also affect the tire pyrolysis time, including weather conditions, worker efficiency, and the condition of the tires.

Henan DOING Company has been researching waste tire pyrolysis machines for over 13 years, offering various types with different capacities. They have also developed a continuous waste tire pyrolysis machine, which has higher efficiency and larger processing capacity, capable of continuous operation for nearly two months. This type is recommended for those with abundant waste tires to process, as it enhances efficiency and generates higher profits.

If you are interested in waste tire pyrolysis, please feel free to contact us. Our sales manager will provide more detailed information about the various waste tire pyrolysis machines available.

PET Bottle Chip

NEXT GENERATION GROUP Expands Presence in Plastic Recycling Market with Investment in HydroDyn

NEXT GENERATION GROUP, a prominent provider of innovative plastic life solutions, has made a significant investment in HydroDyn, a renowned technology company specializing in the cleaning and purification of plastic waste. This strategic collaboration underscores the group’s dedication to offering comprehensive plastic recycling solutions, with a particular focus on post-consumer recycling.

As part of the agreement, HydroDyn will retain its operational independence while benefiting from a close partnership with NEXT GENERATION GROUP, leveraging their high synergy potential. This joint effort will enable both companies to pool their expertise and resources, providing efficient end-to-end plastic recycling solutions to meet the evolving demands of customers in the recycling machinery market. Their shared objective is to prioritize the attainment of specific polymer characteristics essential for various commodity applications, effectively substituting virgin plastics. PET Bottle Chip

Josef Hochreiter, CEO of Next Generation Holding GmbH, expressed the significance of this collaboration: “Through our partnership with HydroDyn, NEXT GENERATION GROUP is exceptionally well-positioned to meet the growing demand for integrated plastic recycling solutions. HydroDyn’s proven track record and innovative technology make them an ideal partner as we continue to lead the charge in driving sustainable recycling practices.”

The acquisition grants HydroDyn access to NEXT GENERATION GROUP’s extensive global network, creating new opportunities for growth and expansion. Michael Hofmann, CEO of HydroDyn, enthusiastically welcomed the partnership, stating, “Joining the group not only provides us with access to a world-class network but also offers the financial support and stability needed to realize our ambitious growth plans. Together, we can make a more significant impact on reducing plastic waste.”

With this strategic alliance, NEXT GENERATION GROUP and HydroDyn are set to make substantial strides in the plastic recycling market, paving the way for a more sustainable future. PET Bottle Chip

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Consortium Drives Chemical Recycling of Plastic Waste in Asia

JGC Corporation, Ebara Environmental Plant, Ube Industries, and Showa Denko announced that they started a study of collaboration for an Engineering, Procurement and Construction (EPC) business for plastic waste gasification facilities utilizing the Ebara Ube Process (EUP).

Osaka/Japan — Promotion of plastic waste recycling has become a global issue, as seen in the ocean microplastic problem. While Japan’s plastic recycling ratio is 86 %, only 13.5 % of the plastics waste are recycled as resources and the rest is exported to other countries or thermally recycled (fiscal 2017). Furthermore, establishment of resource recycling systems is urgently needed in Japan and other countries amid tightening regulations for solid waste import in China and Southeast Asian countries. PET Bottle Chip

Gasification as a chemical recycling process of plastic waste is capable of decomposing a mixture of various kinds of plastics and impurities, which presents difficulties for other recycling methods, into the molecular level and regenerating various chemical materials. It should contribute to substantial improvement of the recycling ratio.

The EUP, which was developed by Ebara (transferred this business to Ebara Environmental Plant in 2009) and Ube Industries in 2000, is a process that gasifies plastic waste using partial oxidation with oxygen and steam, and produces synthesis gases that can be utilized in synthesis of ammonia, olefins, and other chemicals. A gasification facility steadily operating at Showa Denko’s Kawasaki Plant (annual plastic waste processing capability: approximately 70,000 tons) since 2003 applies EUP. This is the only technology for gasification chemical recycling in the world with a long-term track record of commercial operation. PET Bottle Chip


Consortium Drives Chemical Recycling of Plastic Waste in Asia

Scientists at Lawrence Berkeley National Laboratory have made a groundbreaking discovery: a new type of infinitely recyclable plastic that could hold the key to solving the world’s pollution crisis

This innovative plastic offers a sustainable alternative to the 90% of plastics that are currently non-recyclable and rely on finite, polluting petrochemicals as their primary components.

The researchers achieved this feat by engineering microbes to produce the essential building blocks for the plastic, known as poly(diketoenamine) or PDK. What sets PDK apart from traditional plastics is its unique ability to be deconstructed into pristine building blocks and then remolded into new products without any loss in quality. This recycling process can be repeated indefinitely, making PDK a truly eco-friendly solution.

Initially, PDKs were created using petrochemical-derived building blocks. However, the research team successfully redesigned and produced these components using microbes instead. After extensive effort over four years, they managed to manipulate E. coli to convert plant sugars into the starting materials for PDK, achieving an impressive 80 percent bio-content in the final product. PET Bottle Chip

Moreover, the researchers believe that reaching 100 percent bio-content is entirely feasible in the future.

PDKs hold great promise for various applications, such as adhesives, flexible items (computer cables, watch bands), and even construction materials. One surprising finding was that incorporating the bioTAL (the bio-based starting material) into the plastic significantly expanded its working temperature range, making it suitable for use in sports gear, automotive parts like bumpers and dashboards, and other items requiring specific temperature resistance.

Professor Jay Keasling, senior faculty scientist in Berkeley Lab’s Biosciences Area, emphasized the importance of reducing our reliance on fossil fuels and promoting the use of biorenewable and circular materials. By encouraging companies to adopt PDKs, they hope to mitigate the plastic waste problem while ensuring that products can be continuously repurposed, contributing to a more sustainable future.

Scientists at Lawrence Berkeley National Laboratory have made a groundbreaking discovery: a new type of infinitely recyclable plastic that could hold the key to solving the world's pollution crisis

Borouge, a prominent petrochemical company specializing in innovative polyolefin solutions, has reported robust financial results for the first half of the year, posting total revenues of $2.8 billion and an adjusted EBITDA of $978 million

The company attributes a considerable portion of these gains to its ambitious Value Enhancement Programme, which has resulted in a $253 million impact through improved efficiencies and optimized revenue streams. This program has played a crucial role in mitigating external market pressures.

Hazeem Sultan Al Suwaidi, the CEO of Borouge, expressed satisfaction with the company’s strong financial position and cash conversion. As a testament to their success, the board has approved an interim dividend of $650 million, with a commitment to pay $1.3 billion in dividends for the year 2023. Al Suwaidi reaffirmed Borouge’s dedication to creating value for shareholders and emphasized their ongoing focus on innovation and delivering top-quality solutions in the market. PET Bottle Chip

In the second quarter of 2023, Borouge’s revenue increased by 2.5% compared to the previous quarter, reaching $1.4 billion. However, there was a decline in year-on-year revenue. Net income for Q2 2023 amounted to $231 million, representing a 16% increase from the first quarter, supported by a 4% rise in sales. Nonetheless, net income decreased when compared to Q2 2022 figures.

While Borouge faced pricing challenges in Q2, they managed to maintain a healthy EBITDA margin of 37%, a 10% improvement from the previous quarter, thanks to enhanced operational efficiencies. Additionally, the company achieved a remarkable cash conversion rate of 96%, with a healthy adjusted operating free cash flow of $496 million, indicating strong financial management and liquidity.

The company’s sales volumes for polyethylene (PE) and polypropylene (PP) witnessed substantial growth, with 40% of total sales directed towards the value-added infrastructure segment. This strategic focus on high premia end markets contributed to Borouge’s success. Furthermore, Borouge successfully resumed production at a high rate after completing the planned turnaround of the Borouge 2 facility in Q1.

Despite a challenging market environment, Borouge managed to maintain pricing premia above management guidance for both PE ($249/t) and PP ($150/t). This achievement is noteworthy given the softening benchmark prices and some compression experienced during this period. PET Bottle Chip

The decline in net profit for the first half of 2023 can be attributed to a significant 22% drop in average selling prices compared to the peak levels seen in Q2 2022. During that time, high product benchmark rates and exceptional premia for PE and PP contributed to the elevated prices.

Borouge’s Olefins Conversion Unit (OCU) operates at high capacity, offering cost advantages through propylene substitution and margin support. The company’s competitive feedstock contracts, economies of scale, and modern asset base have positioned Borouge in the first quartile of the global cost curve, enhancing its competitive edge.

Maintaining a conservative leverage profile and a robust balance sheet, Borouge retains substantial dividend capacity and lays the groundwork for future growth. An important milestone was reached with Borouge 4, a project funded by major shareholders Adnoc and Borealis, which comprises equity, shareholder loans, and long-term external financing.

Looking ahead, Borouge continues to explore international expansion opportunities, focusing on geographies and markets aligned with its strategic roadmap. As part of its dedication to innovation, the company recently introduced a new polypropylene infrastructure product, designed to facilitate the manufacturing of durable, corrosion-free plumbing and heating pipe systems. The product’s extended lifetime and easy installation process align with sustainability standards and differentiates Borouge’s overall PP product portfolio, aiming to capture a segment market share of over 20%.

In conclusion, Borouge’s performance in the first half of 2023 reflects its resilience in the face of market challenges, driven by strategic initiatives and commitment to innovation. As it continues to grow and evolve, the company remains dedicated to delivering value for shareholders while setting high standards for product quality and sustainability in the industry. PET Bottle Chip

Borouge, a prominent petrochemical company specializing in innovative polyolefin solutions, has reported robust financial results for the first half of the year, posting total revenues of $2.8 billion and an adjusted EBITDA of $978 million

PET Bottle Chip Industry Facing Challenges Amidst Market Dynamics

The PET bottle chip industry has been experiencing a continuous decline in processing spread, leading to concerns about its overall performance. Recent fluctuations in PET bottle chip prices have not alleviated the issue, with the processing spread being further compressed to less than 700 yuan/mt. In certain cases, the spot processing spread has even plummeted to 500 yuan/mt for large orders. This situation raises questions about the reasons behind this problem and whether it indicates a poor performance in the PET bottle chip industry.

To understand the current state of the industry, we must first examine the inventory levels of PET bottle chip factories. Recent data from CCFGroup indicates that overall inventory has not been exceptionally high, remaining within the normal range of 10-15 days over the past six months. As the consumption of summer beverages and edible oils has increased, factory delivery volumes have risen, and physical inventory levels have slightly dropped to just above 10 days. Despite this, there is a perception in the market that PET bottle chip inventory is increasing. This discrepancy can be attributed to market speculation and rumors, which tend to overgeneralize the situation of individual factories to represent the entire industry. PET Bottle Chip

One crucial aspect impacting the processing spread is the pre-selling of PET bottle chip orders, which prioritizes the delivery from factories and the speed of pick-up by downstream end-users and traders over the actual inventory levels at the factories. As the summer season typically witnesses high shipping volumes, the factories do not accumulate significant inventory. However, a recent shift in inventory pressure from factories to downstream end-users and trading channels, coupled with mediocre demand due to the elevated prices of upstream raw materials, has suppressed the processing spread to low levels.

Concerning export orders, while there has been a transition from the frenzy of previous years to a more stable state, the orders are still within an acceptable range. Export volumes during the second quarter have maintained a monthly average of approximately 340,000 tons, accounting for around 31% of total production. However, due to the changing consumption patterns in Europe and the United States, demand for replenishment has declined, making it challenging for Chinese PET bottle chip companies to sustain export orders above 300,000 tons. PET Bottle Chip

On the domestic front, downstream end-user enterprises have ramped up their operations, particularly in the water and edible oil industries. High temperatures in certain regions have spurred additional demand, leading to an increase in PET replenishment to meet summer needs. Nevertheless, overall market sentiment remains cautious due to the addition of nearly 5 million tons of new capacity this year, which has weakened the supply-demand dynamics. The expectation of more new capacity entering the market makes it unrealistic for PET bottle chip factories to maintain price increases.

Considering the current market conditions, some cash flows for PX downstream products are continuously in a loss-making state. To foresee a gradual upward price movement in the future, several conditions need to be met. These include an expansion of PTA unit maintenance due to loss-making processing spread, macroeconomic changes driving a resurgence in crude oil prices, and an improvement in end-user confidence and replenishment willingness. PET Bottle Chip

In conclusion, the PET bottle chip industry faces challenges driven by factors like inventory perception, export demand, and the addition of new capacity. While recent fluctuations in PET bottle chip prices have not significantly improved the processing spread, the industry remains cautious about potential upward price movements. Addressing these challenges will require a combination of market dynamics and improvements in end-user confidence to stabilize and improve the industry’s performance.

PET Bottle Chip Industry Facing Challenges Amidst Market Dynamics

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