Recycled polyolefins MEGlobal – Outstanding using of chemically recycled non-sorted plastic wastel 19-07-2023 - Arhive

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Recycled polyolefins MEGlobal

Europe recycled polyolefins trading conditions likely to remain tough throughout 2023

Continued bearish macroeconomics and substitution to comparatively low-priced virgin and off-spec material has led the majority of players across recycled polyolefin markets to conclude that a recovery in 2023 is unlikely.

2023 has been a largely unprecedented year. Following on from tight supply in H1 2022, many recycled polyolefin players built stocks through the winter of 2022, including in sectors such as horticulture that had never previously pre-built inventories in large quantities, to avoid a repeat in H1 2023.Recycled polyolefins MEGlobal

As macroeconomic conditions weakened – leading to an estimated 50% fall in demand across Q2 year-on-year for non-packaging grades of recycled polyolefins, and 20-30% for packaging grades – and virgin values fell (adding substitution pressure) these pre-existing stocks combined with limited consumption exacerbated oversupply in the market.

This led to sharp falls in non-packaging flake and pellet prices in H1 2023 which have not been fully replicated in bale price movements, particularly for post-industrial recycled polypropylene grades. At the same time, costs remain elevated.

Weak demand has been the result of the cost of living crisis reducing consumers’ discretionary spends and bearish macroeconomic conditions reducing infrastructure projects. Coupled with this, low priced off spec and virgin values have driven demand away from recycled material, and some sellers have been forced to sell at distressed values to free up warehouse space and raise cashflow. Margins have narrowed, amid an ongoing high-cost environment. Recycled polyolefins MEGlobal

Some players described current margins as unsustainably low, and players continue to see high risk of consolidation in 2023.

The market is now entering the summer months which typically sees convertors shut down for several weeks of planned maintenance – limiting demand further. This year, several players have entered shutdowns early due to unfavourable economics, and shutdowns are expected to be extended.

This has led to some distressed prices in the market as players look to free-up warehouse space and raise cashflow before the summer maintenance period begins in earnest.

For grades such as recycled high density polyethylene (R-HDPE) pipe-grade black, June would typically see a peak for pricing in an average year as the high season for construction demand collides with players looking to build stock to take them through the summer months. Recycled polyolefins MEGlobal

This can be seen from the seasonality index below.

The seasonality chart shows an index of the weeks during the year when prices for that grade of material are typically highest and lowest. Numbers above 1.00 on the X axis show prices are typically higher than average in that week of the year, and numbers below one show that prices are typically lower than average in that week of the year.

The seasonally adjusted price for the current year divides the price against the seasonal index value for that week – with the seasonally adjusted price shown on the secondary X axis. This serves the purpose of aggregating the seasonal impact on pricing and gives a truer picture of the underlying movement of prices. Recycled polyolefins MEGlobal

Recycled polyolefins MEGlobal

MEGlobal, a leading global producer of monoethylene glycol (MEG), has announced a significant increase in its August 2023 Asian Contract Price (ACP) for MEG

The company stated that the ACP for August will be set at USD810 per tonne, representing a notable rise of USD20 per tonne compared to the previous month’s ACP. The pricing is based on CFR (cost & freight) Asia, reflecting the total cost of the product including transportation. Recycled polyolefins MEGlobal

This upward adjustment in the ACP comes in the wake of the prevailing market conditions and demand dynamics. As of 14 July, spot MEG prices closed within the range of USD478-487 per tonne CFR CMP (China Main Ports), indicating a comparatively lower price level.

It is worth mentioning that MEGlobal had previously set its July 2023 ACP for MEG at USD790 per tonne, which had marked a decrease of USD50 per tonne compared to the June ACP. Recycled polyolefins MEGlobal

MEG, a vital raw material used in various industries such as textiles, packaging, and automotive, is subject to market fluctuations influenced by factors like supply and demand dynamics, feedstock costs, and global economic trends. The adjustment in the ACP by MEGlobal reflects the current market conditions and aims to maintain a fair and competitive pricing strategy in the industry.

 

Recycled polyolefins MEGlobal

TotalEnergies, Aramco, and Sabic have achieved a significant milestone by successfully producing certified circular polymers using pyrolysis oil derived from chemically recycled non-sorted plastic waste

This groundbreaking achievement marks the first time such technology has been implemented in the Middle East and North Africa region. The process began at the SATORP refinery in Jubail, Saudi Arabia, which is jointly owned by Aramco and TotalEnergies. Subsequently, Petrokemya, an affiliate of Sabic, utilized the pyrolysis oil as a feedstock to manufacture ISCC+ certified circular polymers. Recycled polyolefins MEGlobal

This collaborative project exemplifies the cooperation across the petrochemical value chain to overcome challenges associated with circular plastics in both upstream and downstream operations. According to Sami Al-Osaimi, Sabic EVP Petrochemicals, the initiative demonstrates the company’s commitment to achieving its target of producing one million metric tons of Trucircle solutions by 2030.

The ultimate objective of this project is to establish a domestic value chain for advanced plastic recycling into circular polymers within the Kingdom of Saudi Arabia. Obtaining ISCC+ certification was a crucial milestone, ensuring transparency and traceability of the recycled feedstock and products. The certification was successfully acquired by three industrial plants involved in the process: SATORP refinery, Aramco’s Ju’aymah NGL Fractionation Plant, and Petrokemya. Recycled polyolefins MEGlobal

Aramco is actively exploring various avenues to leverage new technologies and existing assets in support of circular, sustainable, and low-carbon product deployment. Mohammed Y. Al Qahtani, Aramco’s President of Downstream, emphasized the company’s commitment to developing circular solutions for plastic waste while striving to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions across its wholly-owned and operated assets by 2050. By utilizing spare capacity in existing infrastructure, Aramco aims to produce scalable circular products at a low cost.

For TotalEnergies, this initiative signifies its dedication to addressing the challenge of plastic end-of-life. Bernard Pinatel, President of Refining & Chemicals at TotalEnergies, highlighted the company’s ongoing exploration of several other circular economy projects. Leveraging the technical expertise and experience of its partners, TotalEnergies aims to further contribute to plastics recycling. This technology plays a pivotal role in TotalEnergies’ strategy to produce 30% of circular polymers by 2030 and its overarching goal of becoming a net-zero multi-energy company by 2050. Recycled polyolefins MEGlobal

Recycled polyolefins MEGlobal

Solvay has unveiled a new advancement in its portfolio of high-performance and sustainable polyamide 6.6 polymers by introducing a specialized grade of Rhodianyl

This grade is composed entirely of pre-consumer recycled polyamide and is manufactured at Solvay’s Santo Andre plant in Brazil. The achievement of SCS Recycled Content Certification underscores Solvay’s dedication to the circular economy.

To attain the certification, SCS Global Services, a renowned third-party certification body, conducted a thorough audit to verify the traceability of Solvay’s entire manufacturing process. Recycled polyolefins MEGlobal

This included scrutinizing scrap management and the cutting-edge depolymerization reaction, which generates the final 100% recycled polymer.

Rhodianyl, the newly introduced polymer, finds application in engineering plastics for the automotive, small appliances, and textile markets. It complements Solvay’s extensive range of innovative and sustainable polymers, which cater to the consumer goods industry’s demand for high-quality textiles and fibers.

Eduardo Girote, Marketing Director of Solvay’s Coatis Global Business Unit, expressed the company’s commitment to meeting the rigorous standards set by European customers, who constitute the primary market for this application. Solvay, with its 70 years of expertise, has solidified its position as a leading producer and supplier of high-performance and sustainable PA66 polymers. Girote highlighted that certifying the recycling process is a significant milestone in the company’s pursuit of excellence and sustainability. Recycled polyolefins MEGlobal

Nicole Munoz, VP of Environmental Certification Services at SCS Global Services, emphasized the positive impact of Solvay’s commitment to producing 100% pre-consumer Recycled Content Certified polymer. This commitment not only benefits the environment but also positively influences the supply chain. Using recycled content reduces waste, conserves energy, and extends the life cycle of materials instead of creating new ones.

Solvay’s launch of the SCS certified Rhodianyl polymer is part of its broader objective to reduce the environmental impact of its polyamide supply chain in Brazil. In recent years, the company has implemented several pioneering initiatives, including a 95% reduction in CO2 emissions at the Paulinia factory, obtaining the Gold Certification from the Wildlife Habitat Council for preserving biodiversity in its industrial areas, and introducing a groundbreaking program for recycling polyamide uniforms.

Solvay has unveiled a new advancement in its portfolio of high-performance and sustainable polyamide 6.6 polymers by introducing a specialized grade of Rhodianyl

As per the company’s announcement, Asahi Kasei has made the decision to discontinue the operations of its affiliate, Asahi Kasei Cord Co., Ltd., and proceed with the liquidation of the company

Established in 1970, Asahi Kasei Cord has been involved in the manufacturing of nylon yarn for tire cord, serving as a crucial manufacturing and supply hub for Asahi Kasei’s nylon filament business. However, the Japanese market conditions for tire cord have become increasingly challenging due to sluggish growth in automobile production and heightened imports from other countries.

Moreover, the recent surge in raw material and fuel prices has resulted in elevated costs, leading to significant earnings deterioration. Recycled polyolefins MEGlobal

In line with its ongoing efforts to transform its business portfolio, Asahi Kasei has decided to redirect its management resources for nylon filament from general-purpose tire cord applications to specialized applications such as airbags and specialty tire cord. These areas are expected to offer further growth opportunities and enhance profitability. The impact of this decision on Asahi Kasei’s consolidated financial results is considered negligible.

It is worth noting that Asahi Kasei, in collaboration with Microwave Chemical, initiated a joint demonstration project in April 2023.

The objective of the project is to commercialize a chemical recycling process for polyamide 66 utilizing microwave technology. Recycled polyolefins MEGlobal

Recycled polyolefins MEGlobal

BASF, a renowned chemical company, has entered into a Letter of Intent (LoI) with Zhejiang Guanghua Technology Co., Ltd. (KHUA) for the supply of Neopentyl Glycol (NPG) from BASF’s Zhanjiang Verbund site to KHUA, as announced by the company

This agreement signifies a significant milestone in the enduring partnership between the two entities.

KHUA, a reputable manufacturer of saturated polyester resins used in the powder coatings industry in China, is planning to construct a production plant on Donghai Island in the Zhanjiang Economic & Technological Development Zone. The plant will have a capacity of 100 kilotons per annum (KT/a) and will focus on high-end powder coatings resins. Coincidentally, BASF is simultaneously constructing a world-scale NPG plant with an annual production capacity of 80,000 metric tons at the same site. Recycled polyolefins MEGlobal

Vasilios Galanos, Senior Vice President of Intermediates Asia Pacific at BASF, expressed his satisfaction with the strengthened partnership with KHUA through this co-location arrangement. He emphasized the belief that this strategic move would yield synergistic benefits for both parties, including improved collaboration, enhanced supply reliability, faster delivery, access to shared resources, and reduced costs. Galanos also acknowledged the importance of this partnership in meeting the escalating demand for eco-friendly powder coatings in China and the wider Asia Pacific region.

Jeffrey Sun, Chairman of KHUA, expressed optimism about BASF’s Zhanjiang Verbund site, highlighting its commitment to utilizing clean energy, conserving resources, and minimizing emissions. Sun emphasized the strategic advantage of the partnership with BASF, a leading NPG supplier, as well as Zhanjiang’s favorable geographical location. With these factors in place, he expressed confidence in the success of their expansion project for the production of 100KT/a powder coating resins. This expansion project aims to reduce volatile organic compounds (VOCs) and contribute to a sustainable future characterized by clear blue skies and white clouds.

The new NPG plant at the Zhanjiang Verbund site is expected to be operational by Q4 2025, significantly increasing BASF’s global NPG capacity from 255,000 to 335,000 metric tons annually. This development solidifies BASF’s position as one of the leading manufacturers of NPG worldwide. Upon completion, the Zhanjiang plant will become BASF’s fifth NPG facility, joining the ranks of plants in Ludwigshafen, Germany; Freeport, Texas, United States; as well as Nanjing and Jilin, China. Recycled polyolefins MEGlobal

NPG serves as an intermediate compound predominantly used in the production of powder coating resins, which find successful applications in coating household appliances and in the construction industry. Powder coatings, known for their low volatile organic compound (VOC) content, enable compliance with VOC emission standards by reducing VOC release by up to 50% compared to liquid coatings. Additionally, NPG has diverse applications in the manufacturing of lubricants, plasticizers, and pharmaceuticals.

BASF, a renowned chemical company, has entered into a Letter of Intent (LoI) with Zhejiang Guanghua Technology Co., Ltd. (KHUA) for the supply of Neopentyl Glycol (NPG) from BASF's Zhanjiang Verbund site to KHUA, as announced by the company

Coca-Cola Europacific Partners Germany (CCEP DE) strengthens reusable containers business

Coca-Cola Europacific Partners Germany (CCEP DE) is expanding its beverage portfolio in 1-litre refillable glass bottles by five beverage brands from September 2023 . In addition, CCEP DE is simplifying the filling of beverages in returnable large containers with immediate effect by introducing a new, uniform bottle design for each of the 1-litre glass and PET bottles. This will increase the production capacity for these packages in the future. Recycled polyolefins MEGlobal

In order to position returnable bottles even better for the future, CCEP DE is simplifying the filling of PET and glass containers. To this end, the beverage company is halving the number of bottle shapes: For all beverages in 1-litre reusable containers, a new, uniform bottle shape will be introduced for PET and glass respectively.

New design for 1-litre PET returnable bottle for the first time since its introduction

The change is particularly significant for the 1-litre PET returnable bottle, into which CCEP DE fills a large variety of different beverage types: The bottle shape of the high-volume trade market classic is getting a new design for the first time since its introduction some 30 years ago. The changeover may take several years, depending on the container.

Reusable remains important in the packaging mix at CCEP DE, says the company. In total, around 250 million euros have been invested in reusable filling in the last five years (2018 to 2022): among other things, in two new glass reusable filling lines, new reusable containers such as the 0.4-litre glass reusable bottle for classics such as Coca-Cola, Fanta and Sprite, as well as in the expansion of the reusable bottle pool and in new reusable crates. More than 100 million euros in investments are planned for 2023, a large part for the bottle and crate pool. Recycled polyolefins MEGlobal

Around 40 million euros are currently being invested in a new refillable glass bottling plant in Lüneburg. In addition, the recommissioning of an existing returnable PET line in Bad Neuenahr is planned for a good 15 million euros. Both plants are scheduled to go into operation in 2024.

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