Recycled PET (R-PET)

HOUSTON (ICIS)–As the landmark year, 2025, swiftly passes, many within the US recycled polyethylene terephthalate (R-PET) industry doubt the demand and market growth promised by voluntary brand goals and regulatory post-consumer recycled (PCR) content minimums will come to fruition. Despite this reality, the market has and will continue to see slow progress, with forecast growth even in the face of trade and macroeconomic uncertainties heading into this year’s Plastics Recycling Conference (PRC). MARKET SNAPSHOTOver the course of 2024, average US R-PET market prices saw increases across the board ranging from 2 cents/lb to over 6 cents/lb. More muted growth is expected throughout 2025. At present, East Coast bale, flake and pellet prices remain steady, on sufficient supply and unchanged demand trends despite March typically being a period of transition for the market. On the West Coast, bale prices remain under pressure from Mexican export interest, though domestic players are muted. Flake and pellet prices have shifted in line with bales, but remain under pressure from competitive recycled and virgin imports. Demand expectations across the US for the full spring season are mixed. Historically, demand from thermoformers who cater towards agricultural markets increases in the spring and summer alongside growing season. At the same time, demand from the beverage industry also tends to increase in the spring in preparation for summer bottled beverage consumption. Though, this year, ramp-up timing and intensity remains uncertain due to the impacts of tariffs and inflation on consumer spending. On the fiber side, demand is expected to remain weak and is typically not as seasonally driven. BRAND DEMAND AND SUPPLY LANDSCAPEWhen assessing PCR demand, there are two factors of influence: firstly, the overall product demand as referenced above, but then secondly, the transition from virgin packaging materials to recycled content. Hinging on the same macroeconomic uncertainty, late last year and early this year several brands have publicly stated it is likely they will miss their 2025 sustainability goals. Under this mentality, PCR sellers have noted that many brand and converter customers have downsized PCR growth plans throughout this year as a cost-savings mechanism. This comes as the most recent fast-moving consumer goods (FMCG) data suggests slowing progress, or even in the case of the 2023 Canadian Plastics Pact annual report, negative progress. According to the latest Ellen MacArthur Foundation Global Commitment report, nearly 1.6 million tonnes of additional recycled plastic would be needed for signatories to meet their 2025 targets, as compared to 2023 PCR volumes. On top of the overarching trend, much of the market presently remains in wait-and-see mode due to the whiplash effect of proposed US tariffs, though few players are heard to be operating strongly with consistent year-round demand. The fragmentation of the market persists, as was highlighted during off-peak season last year, and underscores the evolving landscape of polyethylene terephthalate (PET) recycling infrastructure. While some large players who have become entrenched as a premier provider of R-PET see strong order books, other standalone players continue to struggle. Adding to the mixed messaging, several players expect expanded capacity in 2025 such as Republic Services, D6 and Circularix, while another player, Evergreen, has announced a partial facility closure. Future investments in R-PET, whether domestic or international, have largely been paralyzed by the risk that market sentiment and trade policies could shift with each administration, and investments take several years to come to fruition. POLICYWhile not a primary driver of US international trade, plastic scrap and recycled plastic do have strong exposure to international markets, particularly Canada and Mexico as waste is regional and typically market economics hinge on location proximity. To be clear, the proposed 25% tariff on imported goods from Canada and Mexico does include recycled plastic and plastic scrap. When looking at bale and flake supply, tariffs could push US recyclers who are close to Mexico and Canada away from international supply, and towards domestic volumes, thus further straining the limited collection system. The US imported 133 million lbs of PET scrap in 2024, with Canada leading the globe as the US's strongest PET scrap trade partner, followed by Thailand, Ecuador and Japan. Moreover, several US converters and brands have partnered with Canadian and Mexican recyclers over the last several years and now may seek supply relationships with domestic recyclers to avoid additional tariff-related costs. This could be seen as a positive force for the domestic recycling market, though players expect little further support from the current administration, as sustainability and environmental progress has not been identified as a key priority. No federal policies are expected. Despite the ongoing negotiations of the Global Plastics Treaty, based on President Trump's second withdrawal from the Paris Climate Accord, it is unlikely the US will support another global sustainability effort. Instead, state-level legislation is expected to continue carrying PCR momentum, with several proposed extended producer responsibility (EPR) bills as well as some PCR mandates active within various state legislatures. Moreover, as existing policies continue to take shape, such as defining the regulations of California’s Senate Bill 54, or the implementation of Oregon’s EPR program starting this July, the industry hopes that regulation provides a stronger foundation for recycled plastic market growth over voluntary goals which shift with economic sentiment. Hosted by Resource Recycling Inc, the PRC takes place on 24-26 March in National Harbor, Maryland. ICIS will be presenting "Shaping the Future of Recycled Plastics: Trends and Forecasts" on Monday, 24 March at 11:15 local time in room Potomac D. As well as attending our session, we would love to connect with you at the show – please stop by our booth, #308. Visit the Recycled Plastics topic page Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Macroeconomics: Impact on chemicals topic page Visit the Logistics: Impact on chemicals and energy topic page Focus article by Emily Friedman

18-Mar-2025

COATZACOALCOS, Mexico (ICIS)–Mexico’s new ethane import terminal in the state of Veracruz is poised to transform the country's struggling petrochemical sector by alleviating critical raw material shortages, according to the chief at the facility. Cleantho de Paiva, CEO at the Terminal Quimica Puerto Mexico (TQPM) in Veracruz’s municipality of Coatzacoalcos, said the terminal should start up in May and be able to import 80,000 barrels of ethane, mostly from the US. Natural gas derivative ethane has become the prime choice to produce polymers in North America after the US’s shale gas boom in the 2010s. The ethane will be primarily delivered to polyethylene (PE) major Braskem Idesa, a joint venture between the Brazilian and Mexican chemicals producers of the same name. TQPM is, at the same time, a joint venture between Braskem Idesa and Dutch company Advario. ICIS visited TQPM on 15 March – a few pictures shown at the bottom. FINALLY, START-UP PLANNED FOR MAYThe terminal’s years-long construction is a key project of Braskem Idesa, which until now has been dependent on supply of inputs mostly from Mexico’s crude oil major Pemex, supply which at a time was unstable and below what had been agreed. The situation became so critical that Braskem Idesa, which operates one of Latin America's newest PE complexes, was forced to seek alternative supply arrangements. Industry analysts have pointed to Pemex's supply shortfalls as a major constraint on Mexico's petrochemical sector growth. The terminal’s financing was at some point in doubt, although the parties agreed to inject further cash last year so it could be finalized in 2025. TQPM will make it easier for Braskem Idesa to secure inputs necessary to produce PE, without depending on Pemex, whom at the same time would be able to redirect the inputs it was delivering to the PE producer to other petrochemicals companies. A common theme for Mexican chemicals companies is the lack of raw materials, so any additional supply is always welcome news, said de Paiva. "This project has a very important impact on the development of the national petrochemical industry, because it's precisely to complement access to raw materials that we lack today. With a capacity to import up to 80,000 barrels per day of ethane, this will significantly exceed the 63,000 barrels Braskem Idesa currently requires for its operations,” said de Paiva. “The issue of the lack of ethane in the country is structural. Since the US is the largest producer and exporter of petrochemical ethane, building this terminal gives us access to import sufficient raw material. "When the terminal comes into operation, Pemex, which currently has an obligation to supply a certain amount to Braskem Idesa, will no longer have it and will be able to direct this raw material to its own petrochemical complexes and also resume its operating capacity," he added. This cascading effect could benefit Mexico's broader petrochemical industry, potentially allowing Pemex to better serve other domestic manufacturers once relieved of its Braskem Idesa commitments. De Paiva described this as a “structuring” event for Mexico’s manufacturing industry as it could allow the country's petrochemical industry to return to operating its plants at higher capacities. The executive offered a segment-by-segment assessment of Mexico's chemical industry, noting varying conditions across different product categories. He said polypropylene (PP) production, led by Indelpro – a joint venture between Mexico’s Alpek and the US’s LyondellBasell – as well as production of polyethylene terephthalate (PET) are performing quite well. It is the PE market which faces significant shortages, said de Paiva. PEMEX ASSETSAddressing questions about the state of Pemex's aging petrochemical assets, de Paiva suggested that proper maintenance and technological upgrades could extend the operational life of even decades-old facilities. Some players in Mexico’s chemicals industry think there is room for joint ventures with the private sector to revive some of Pemex’s assets. That was the opinion of Martin Toscano, director for Mexican operations at Germany’s chemicals major Evonik, in an interview with ICIS. Other players, however, think the only way forward would be privatization so Pemex, which recurrently needs bailing out from the Mexican Treasury, would stop being a burden for the taxpayer, according to Javier Soriano, director at chemicals distributor Quimisor. De Paiva said he could not opine about Pemex’s assets, but did say that if plants are properly maintained they should be able to run for decades after start-up. "Petrochemical plants must operate for 30, 40, even 50 years, but they must maintain a continuous maintenance and technological upgrade program. Braskem's experience in Brazil offers a glimpse of this: the company successfully operates plants of similar age, but with consistent investments in modernization,” said de Paiva. Before being appointed CEO at TQPM – a position he will keep for some time after the start-up in May, he said – de Paiva spent decades working for Braskem in Brazil, his country of origin. The terminal's completion comes at a critical time for Mexico's manufacturing sector, which has been looking to capitalize on nearshoring opportunities as global companies seek to reduce dependence on Asian supply chains. Industry experts suggest that resolving raw material constraints could position Mexico's petrochemical sector for significant growth, particularly given its proximity to the US market and competitive labor costs. De Paiva concluded saying that once TQPM is up and running, that will create room for Braskem Idesa to think about potential expansions. The terminal’s storage tanks, being painted The dock where two Braskem Idesa-owned vessels will unload the ethane, to come mostly from the US Work was energetic even on a Saturday (15 March) as TQPM’s two partners want to inaugurate the facility in less than two months Miniature TQPM; right bottom, detail of area’s map and the pipelines (yellow line) connecting the terminal with Braskem Idesa’s facilities, some 10km away Pictures source: ICIS  Interview article by Jonathan Lopez

17-Mar-2025

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 14 March. US energy secretary optimistic as tariff proposals in early days The US is still in the early stages of its tariff proposals, which could increase the costs of the steel and aluminium needed for oil and gas production, but vigorous dialogue about their effect on the economy is taking place behind closed doors, the secretary of energy said on Monday. AFPM ’25: Shippers weigh tariffs, port charges on global supply chains Whether it is dealing with on-again, off-again tariffs, new charges at US ports for carriers with China-flagged vessels in their fleets, or booking passage through the Panama Canal, participants at this year's International Petrochemical Conference (IPC) have plenty to talk about. AFPM ‘25: US tariffs, retaliation risk heightens uncertainty for chemicals, economies The threat of additional US tariffs, retaliatory tariffs from trading partners, and their potential impact is fostering a heightened level of uncertainty, dampening consumer, business and investor sentiment, along with clouding the 2025 outlook for chemicals and economies. INSIGHT: Tariff war escalates as EU new round of retaliation includes US PE, plastic products Yet another front is opening up on the US tariff war – this one with the EU. In retaliation for US 25% tariffs on steel and aluminium imports that took effect on 12 March, the EU plans to not only roll out old measures, but launch new more significant tariffs directly targeting US polyethylene (PE) and other plastic products. AFPM '25: INSIGHT: New US president brings chems regulatory relief, tariffs The new administration of US President Donald Trump is giving chemical companies a break on regulations and proposing tariffs on the nation's biggest trade partners and on the world. Dow to announce decisions on European asset footprint on Q1 and Q2 earning calls – CFO Dow plans to announce decisions from its European asset review on its Q1 and Q2 earnings calls, its chief financial officer (CFO) said. Canada’s new prime minister to focus on trade diversification and security Canada’s new prime minister, Mark Carney, will focus on diversifying the country’s trade relationships and improving its security, he said on Friday after officially taking over from Justin Trudeau. AFPM ’25: LatAm chemicals face uncertain outlook amid oversupply, trade policy woes Latin American petrochemicals face ongoing challenges from oversupplied markets and poor demand, with survival increasingly dependent on government protectionist measures.

17-Mar-2025

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 14 March. European naphtha slides as demand wanes, refineries roar back Sentiment in Europe's naphtha spot market was weighed down by upstream crude volatility, weak blending demand and limited export opportunities in the week to 7 March despite ample liquidity in the physical space. Flagship Maasvlakte POSM plant to close in October – union The largest propylene oxide/styrene monomer (POSM) production complex in Europe is expected to close in October, union FNV said on Tuesday, after an agreement was reached between operator LyondellBasell and employees at the site. Europe chems stocks claw back losses as markets firm despite tariffs European chemicals stocks firmed in early trading on Wednesday as markets rebounded from the sell off of the last week, despite the onset of US tariffs on aluminium and steel and Europe’s pledge to retaliate. 'Game changer' for Europe PE as EU plans retaliatory tariffs on US European polyethylene (PE) players are braced for a potentially big impact from the EU’s retaliatory tariffs on plastics from the US, in the latest twist of the growing trade war. INSIGHT: Can the chemicals sector tap into Europe’s rearmament era? Europe’s drive to drastically ramp up defence spending is likely to drive a wave of investment into the region’s beleaguered industrial sector, but existing military spending patterns and technical requirements could limit uplift for chemicals.

17-Mar-2025

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Colorless flake prices rise in Italy and Spain High feedstock bale costs still a concern Hopes for improved pellet demand from Q2

14-Mar-2025

HOUSTON (ICIS)–Whether it is dealing with on-again, off-again tariffs, new charges at US ports for carriers with China-flagged vessels in their fleets, or booking passage through the Panama Canal, participants at this year's International Petrochemical Conference (IPC) have plenty to talk about. Last year, shippers were dealing with tight global capacity after carriers began avoiding the Suez Canal because of attacks on commercial vessels by Houthi rebels, the possibility of labor issues at US Gulf and East Coast ports, and fewer slots for passage through the Panama Canal as that region dealt with a severe drought. But 2025 has brought a new series of challenges that will keep logistics and supply chain professionals busy. TARIFFS The US has imposed tariffs of 25% on most imports from Canada and Mexico, effective 4 March, but US President Donald Trump said last week that tariffs on goods from Mexico and Canada that are compliant with the USMCA free trade agreement will be exempt until 2 April. It is unclear what shifts in trade flows will be seen once tariffs are fully implemented, but analysts at Dutch banking and financial services corporation ING still expect global trade to see solid growth amid trade tensions, geopolitical risks and economic nationalism. ING expects trade in goods to grow by 2.5% year on year in 2025, driven by heavy front-loading in the first quarter and increased intra-continental trade throughout the year. “While it is true that some countries heavily depend on the US market, such as Canada and Mexico, global trade is far more diverse and does not solely revolve around the United States,” ING said. According to the World Integrated Trade Solution (WITS) data, which contains trade data among 122 countries, the US accounts for 13.6% of total global exports. Additionally, the reliance on raw materials and critical intermediate products that cannot be substituted, as well as new alliances and potential trade deals speak for continued trade in goods. STRATEGIES FOR ADAPTATION Chemical distributor GreenChem Industries offered suggestions that chemical companies could implement to mitigate the effects of tariffs. These include finding new sources for raw materials in regions with favorable trade agreements, modifying transportation routes and methods to lower costs and enhance efficiency, discovering more affordable chemical alternatives that maintain quality, reevaluating trade agreements to secure more competitive pricing, and investigating the potential for manufacturing within strategic markets to avoid extra costs. USTR HEARING ON NEW PORT CHARGES The office of the US Trade Representative (USTR) is accepting public comment on proposed actions against Chinese-owned ships after a Section 301 investigation determined China’s acts, policies and practices to be unreasonable and to burden or restrict US commerce. The proposal includes proposed service fees of up to $1.5 million per US port call for vessels built in China, and up to $1 million per port call for China-based operators. USTR is now accepting public comment and will hold a public hearing on the proposed actions on 24 March. Some market players feel the proposal is aimed at container ships, but a broker in the liquid chemical tanker space said that if the text of the prosed action remains unchanged, the China-built tankers comprising the fleets of shipping majors Stolt and Odjfell could be targeted. As of now, the proposal would include all commercial vessels calling on US ports. The West Gulf Maritime Association (WGMA) said that currently, there is not enough US inventory to meet the demand for maritime transport nor has the USTR suggested plans for meeting the projected demands. There is also not enough shipbuilding capacity within the US to construct the required hulls. Based on the draft executive order, the USTR will have no more than 180 days to implement the port fee collection program. The WGMA intends to individually and collectively submit comments against the proposed policy as written with recommendations, and they strongly encourage all shipping companies and vessel operators do the same through any means available to them. LIQUID CHEMICAL TANKERS Trade data from 2024 shows that about 25% of US liquid bulk exports and 21% of imports were carried on Chinese-built vessels, which will particularly impact the specialty chemical, vegetable oils and renewable fuels sectors. The fees would mean increasing the number of exports on US-flagged vessels and, given the limited existing US-flagged chemical tanker fleet, this will make any shortfall difficult to make up. Typically, it will take 24-36 months for construction of these type of specialized vessels, therefore the industry will face significant challenges in the meantime. These significant increases would most likely lead to a few different scenarios such as substantial rate increases, fewer port calls and potential supply chain disruptions for US manufacturers relying on specialty chemical imports. As a result, most owners and charterers are taking a wait and see approach while looking for longer term solutions. Liquid tanker spot rates hit their highest over the past decade in 2025 but have fallen from the peaks, according to ICIS pricing history. The following chart shows rates over the past year on the US Gulf-Asia trade route. CONTAINER RATES Rates for shipping containers from east Asia and China to the US have fallen considerable this year as capacity adjusted to diversions away from the Suez Canal and as newly built vessels entered the market. Judah Levine, head of research at online freight shipping marketplace and platform provider Freightos, said that the combination of a seasonal slump in demand and the possible end of frontloading ahead of tariffs likely drove the sharp fall in transpacific ocean rates recently. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks. PANAMA CANAL Because of a severe drought that lowered levels in the freshwater lake that serves the Panama Canal, the Panama Canal Authority (PCA) was forced to limit daily crossings for the first time in its history. The drought was in part brought about because of the El Nino weather phenomenon, which contributes to less rainfall, especially during what is the typical rainy season. But weather patterns have shifted to La Nina, which brings increased rains and have helped levels at Gatun Lake approach capacity. Gabriel Mariscal, agency business manager at port service provider CB Fenton & Co, said the situation at the Panama Canal is completely different from a year ago. “We are not expecting to have any restrictions this year in regard to transit,” Mariscal told ICIS. “In fact, during a normal summer season, perhaps there could be a draft restriction at the Neopanamax locks, but I think that this year that will not be the case.” Mariscal said the PCA is updating regulations for customer rankings. Customer rankings consider the volumes a shipper moved through the canal over the previous 12 months, as well as the number of tolls they have paid. For example, if there are 10 slots for passage on a given day, and the PCA receives 20 requests for those slots, the higher-ranking customers will get priority. If a shipper is unable to book a slot in the first period (90 days before passage) or the second booking period (14 days before passage) then they go to the auction, where the highest bidder wins. Container shipping companies Maersk and MSC are the highest two ranked customers at present. Mariscal said Maersk has at least three vessels that transit the canal each day. PANAMA TENSIONS WITH US Mariscal said that the new presidential administration under Trump has caused some stress for the central American country. Because of this, he expects extreme care to be taken by the PCA when announcing new rules or regulations so as not to increase tensions. Trump surprised some shortly after his inauguration when he said that the US should reclaim the Panama Canal. A US congressman has since introduced a bill that would authorize the purchase of the Panama Canal. Trump threatened to reclaim the canal if Panama did not take immediate steps to curb what Trump called China’s influence and control over the vital waterway. Panama’s president said in early February the country will not renew its agreement with China’s Belt and Road Initiative (BRI) after a visit from US Secretary of State Marco Rubio. Then, last week a consortium led by private equity firm BlackRock agreed to pay $22.8 billion for port terminal operations from Hutchison Port Holdings (HPH), which includes terminals in Panama. It was Hong Kong-listed CK Hutchison’s ownership of the ports at both entrances to the canal that likely concerned Trump. Hosted by the American Fuel & Petrochemical Manufacturers (AFPM), the IPC takes place on 23-25 March in San Antonio, Texas. Visit the US tariffs, policy – impact on chemicals and energy topic page Visit the Macroeconomics: Impact on chemicals topic page Visit the Logistics: Impact on chemicals and energy topic page Focus article by Adam Yanelli Additional reporting by Kevin Callahan Thumbnail image shows a container ship passing through the Panama Canal. Courtesy the Panama Canal Authority

11-Mar-2025

LONDON (ICIS)–Here are some of the top stories from ICIS Europe for the week ended 7 March 2025. Europe glycerine spot prices rise on prolonged shortages Constrained crude glycerine availability evident over an extended length of time has exerted upward pricing pressure on all glycerine grades in the European market, resulting in spot prices rising this week. INSIGHT: Half a decade on from the pandemic, feedstock pricing volatility remains widespread and perhaps irreversible Next week marks half a decade since major lockdowns were enforced across Europe in response to the coronavirus pandemic, and the obvious thing to do would be to reflect back on how much life has changed over the past five years. Europe colorless PET bottle bale prices rise for first time since Q2 2024 Reduced supply and higher demand from the downstream recycled polyethylene terephthalate (R-PET) flake sector have seen colorless (C) post-consumer PET bottle bale prices in northwest Europe (NWE) rise for the first time since April 2024. Europe chems stocks tank amid tariff-driven global sell-off European chemicals stocks fell on Tuesday in line with a wider market sell-off as the US prepares to impose wide-ranging tariffs on Mexico and Canada and China announced retaliatory tariffs on the US, deepening global trade tensions. BASF not looking to tailwinds for 2025 earnings growth BASF expects to increase earnings in 2025, with most units other than chemicals expected to contribute to annual growth, but it is not expecting much support from economic tailwinds this year.

10-Mar-2025

HOUSTON (ICIS)–Shipping container rates from Asia to both US coasts fell again this week as capacity has grown and as volumes have fallen after frontloading to beat tariffs, and liquid tanker rates rose on the transatlantic eastbound route and fell on the US Gulf to Asia trade lane. CONTAINER RATES Rates from Shanghai to Los Angeles fell by 9% this week, according to supply chain advisors Drewry, while rates from Shanghai to New York fell by 6%, as shown in the following chart. Rates to both US coasts are now at their lowest of the year, according to Drewry data. Global average rates in Drewry’s World Container Index fell by 3% and are also at their lowest over the past year, as shown in the following chart. Drewry expects rates to continue to decrease next week due to increased shipping capacity. Rates from online freight shipping marketplace and platform provider Freightos showed significant decreases this week, although their rates are slightly higher than Drewry’s. Judah Levine, head of research at Freightos, said that tariffs – or the threat of tariffs – led to many importers frontloading volumes to beat the announced levies. “The president’s proposed 60% tariffs on Chinese goods could go into effect as soon as April – as could a wider application of reciprocal tariffs on numerous countries – meaning the window to receive goods before then is about closed,” Levine said. Levine said that the combination of a seasonal slump in demand and the possible end of frontloading likely drove the sharp fall in transpacific ocean rates last week. “If frontloading of the past few months was significant enough, we could also expect to see subdued peak season demand and rates as a result,” Levine said. Container ships and costs for shipping containers are relevant to the chemical industry because while most chemicals are liquids and are shipped in tankers, container ships transport polymers, such as polyethylene (PE) and polypropylene (PP), are shipped in pellets. Titanium dioxide (TiO2) is also shipped in containers. They also transport liquid chemicals in isotanks. LIQUID TANKER RATES MIXED US chemical tanker freight rates assessed by ICIS were mixed week on week. Trade routes from the US remain mixed with several trade lanes slightly higher and others lower. Cargo moving into Asia weakens following the recent tariff announcements and this route has recently seen a decrease of cargoes, as the tariffs have all but halted any spot activity for this trade lane. As a result, rates have dipped from the previous week. On the other hand, the rates from USG to Rotterdam experienced upward pressure. For this trade lane freight rates for March have strengthened, given the amount of space left. A shipowner said it is expecting the trend to continue throughout March, with higher contract of affreightment (COA) utilization leaving very little available space. From the USG to Brazil, this market has remained relatively unchanged but is experiencing some downward pressure. While the market continues to be active it is further influenced by freight availability and a swing in trade lane dynamics. Demand remains soft particularly for larger parcels further pressuring some downward movement. On the USG to India trade lane, the market remains extremely soft with plenty of space available as outsiders have entered the market. As a result, this has placed downward pressure, and rates could fall further on the route if this persists. Several inquiries were seen for monoethylene glycol (MEG), methanol, ethanol, and vinyl acetate monomer (VAM), but few fixtures were seen in the market. With additional reporting by Kevin Callahan

07-Mar-2025

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: FD NWE colourless (C) bale prices rise for first time since May 2024 FD NWE C and mixed coloured flake prices rise at low end in March Food-grade pellet range widens, as UK C flake range narrows

07-Mar-2025

HOUSTON (ICIS)–US recycled polypropylene (R-PP) players are currently watching polypropylene (PP) bale price movement as recent increases have put pressure on finished recycled resin margins. As R-PP pellet prices are already established close to or over 2x virgin PP costs, recent increases in bale feedstock costs can be difficult to pass through, though recent increases in virgin PP prices have somewhat softened the blow. Bales East Coast PP bale prices have nearly doubled since last fall, on strong demand from several existing players who have increased processing capacity over the last year, PureCycle in particular. With the recent start-up of PureCycle's plastics recovery facility (PRF), bale markets have seen surprising upwards movement on tight supply as players are having to compete for the same pool of available bales. Bale supply could further tighten as the 25% tariffs on imports from Canada and Mexico take effect this week. Some recyclers who are located near border regions have historically purchased bale feedstock from neighboring countries. The proposed tariffs could render imported bales from Canada and Mexico uneconomic, thus further limiting supply, or lending support to higher domestic pricing. Post-consumer resin On the finished resin side, demand remains mixed, as recyclers and converters continue to field increased customer inquiries but have struggled to transition these to sales volumes. Target end markets include consumer goods/packaging, automotive and fiber applications, though most end markets are currently grappling with the challenging macroeconomic outlook. The latest quarterly earnings results suggest most global brands saw single digit volume growth at the end of last year, though it remains to be seen how consumers react as inflation remains persistent Moreover, as bottom line pressure grows, those considering higher cost sustainable materials may shift back to lower cost virgin resins. Prices for natural post-consumer R-PP material were heard as high as $1.30/lb. This was considered to be an outlier. Prices for PureCycle’s dissolution based material, PureFive, were quoted at $1.36/lb, according to company representatives during their latest earnings call. Moreover, it was noted PureCycle has inventoried 7.2 million lbs of resin, awaiting third party certification. This compares to the Q4 production volume of 3.6 million lbs and uptime of 67% in December. Despite the small initial supply from PureCycle and other PP mechanical recyclers, the ability to compound should increase potential volumes. PureCycle noted typical fiber applications of their resin are a 50/50 blend, where as film applications are centered around a 30/70 blend of recycled/virgin material. Pricing for a 50/50 blend of natural mechanically recycled R-PP and virgin PP material was heard in the range of $1.20-1.30/lb. Moreover, compounding is relatively popular with the PP space, as many PP applications require specific materials properties which can only be achieved through a blend of materials. Though as the recycled plastic space remains nascent, many worry initial failures will deter future interest. One producer noted customers might trial one source of R-PP, and if the resin does not perform as expected, they abandon plans for R-PP integration without trialing other types of R-PP from other providers which can vary significantly in quality and technical support. ICIS is currently developing US R-PP market coverage. Monthly, free prototyped reports target those involved in the processing and purchasing of PP bales as well as mechanically recycled post-consumer and post-industrial PP resin within the US. These reports have market discussion on pricing, supply, demand and current news, split by post-consumer vs post-industrial market categories. If you are interested in learning more about this coverage and or receiving these prototype reports, please reach out to Emily.Friedman@icis.com.

06-Mar-2025