PRE highlights concerns about increasing imports of recycled plastics in the EU

Plastics Recyclers Europe (PRE), the representative body for European plastics recyclers, has raised significant concerns regarding the escalating imports of recycled plastic, citing potential threats to the EU industry, said Chemanalyst.

The organization, dedicated to championing the role of recyclers in fostering plastic circularity and transitioning towards a circular economy, has identified a pronounced destabilization in the European plastics recycling sector throughout 2023.

The primary driver of this destabilization stems from the mounting influx of recycled plastics into the EU, resulting in an imbalanced market and profound environmental repercussions. Furthermore, PRE asserts that these imports contribute to the EU's deindustrialization while undermining the environmental objectives outlined in the European Green Deal. The organization contends that the stability of the sector is compromised by these imported materials, exacerbated by a decline in EU competitiveness and the absence of a level playing field.

PRE underscores the European Commission's Packaging and Packaging Waste Regulation (PPWR) as a key instrument designed to enhance circularity and effectively address waste within the EU. However, the organization raises concerns about the potential for non-EU plastic waste to contribute to EU targets without robust control mechanisms, posing a threat to the market.

PRE points to a recent issue brief derived from an analysis of the circular polyethylene terephthalate (PET) and polyester system, which highlights the possible repercussions on Europe's recycling systems, cautioning that if investments in EU recycling systems are reduced or stopped, greenhouse gas emissions could more than double by 2040. Such a scenario could lead to an increased incineration of waste rather than recycling, with a consequential drop in the PET recycling rate by 2040, threatening the competitiveness of the European industry. The PET recycling rate is estimated to decline to a range of 32% to 38% by 2040, a stark contrast to the 67% projected in the circular scenario.

In response to these challenges, PRE is urging the EU's institutions to implement safeguards that would provide support to the industry and facilitate the transition to a circular economy. Recognizing the urgency of the situation, the organization advocates for proactive measures to counteract the destabilizing effects of increased recycled plastic imports.

As part of their advocacy efforts, PRE released a new manifesto in December 2023, calling on the EU to enact necessary changes and policies to achieve what they term as 'genuine' plastics circularity. The manifesto serves as a comprehensive blueprint, outlining the specific adjustments and policy initiatives required to address the challenges posed by the rising imports of recycled plastics and safeguard the long-term sustainability of the European plastics recycling industry. Through this manifesto, PRE aims to mobilize stakeholders and decision-makers towards collectively adopting measures that ensure the responsible and sustainable management of plastic waste within the EU.

We remind, polyethylene Terephthalate (PET) price experiences a contradictory trend for the US and European market during early March 2024. In the US market, PET price remained stable during the first week of March 2024, due to the balanced supply chain and uninterrupted operation while market took a growth of around 4.5% in February 2024, attributed to the significant factors from feedstock shortage and logistics interruption.

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South Korea’s Lotte Chemical Corp. announced on Monday its commencement of commercial production at the plant of Hydroxy Ethyl Cellulose (product name: Hecellose) in Yeosu, South Jeolla Province earlier this month, said Kedglobal.

In December last year, Lotte Chemical constructed the Hecellose production facility on its Yeosu development site, specializing in Lotte Fine Chemical Co. 's key specialty product, Hecellose.

Hecellose, a cellulose derivative made from ethylene oxide and pulp, serves as an additive in various industries such as water-based paints, household goods, and cosmetics, providing viscosity and moisture retention.

With the completion of the Yeosu Hecellose plant, the entire process, from sourcing raw materials for 10,000 tons of Hecellose products to production, now takes place in one location.

Lotte Chemical has established a system to safely supply ethylene oxide, a key raw material for Hecellose products, through pipelines to the new plant, instead of conventional land transportation.

This enables Lotte Chemical to generate revenue through the sale of ethylene oxide products and commissioned production of Hecellose. Simultaneously, Lotte Fine Chemical will benefit from a stable raw material supply, strengthening its foundation for expanding the Hecellose business.

We remind, Lotte Chemical Corp. announced that it has established artificial intelligence (AI) organizations tailored to the characteristics of its basic materials and advanced materials businesses to strengthen data-based research.

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South Korea's Lotte Chemical Corp. announced that it has established artificial intelligence (AI) organizations tailored to the characteristics of its basic materials and advanced materials businesses to strengthen data-based research, said Kedglobal.

In the basic chemicals business sector, the company has formed a new AI Solution Team at the Lotte Chemical Institute of Technology in Daejeon to develop AI-integrated catalysts and products, combining accumulated research and development (R&D) knowledge with AI to enhance quality.

The Solution Team integrates AI tasks from relevant departments, undertaking tasks such as improving product properties using machine learning and deep learning techniques, predicting catalyst characteristics, and simulation-based reactor design.

In the advanced materials sector, the company has built the AI Promotion Office to identify and address various issues arising in all areas of business, including product development, production, and global supply chain, through AI-based solutions.

We remind, Lotte Chemical Corp. announced on Monday its commencement of commercial production at the plant of Hydroxy Ethyl Cellulose (product name: Hecellose) in Yeosu, South Jeolla Province earlier this month.

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Polyethylene Terephthalate (PET) price experiences a contradictory trend for the US and European market during early March 2024, said Chemanalyst.

In the US market, PET price remained stable during the first week of March 2024, due to the balanced supply chain and uninterrupted operation while market took a growth of around 4.5% in February 2024, attributed to the significant factors from feedstock shortage and logistics interruption. Eventually, PET prices marked stable price during first week of March 2024, However, Alpek Polyester USA, has announced to increase the PET price by around USD 110/MT, in effect from 1st March 2024, owing to the complexities from the upstream and logistics factors, that has been a complex factor in the import. In recent months, the PET market has experienced a shortage of its feedstock i.e. Mono Ethylene Glycol, driven by the shutdown of manufacturing units or reduction in the operation capacities, due to the unfavorable climate conditions. The shortage of MEG (raw material for PET) coupled with the fluctuation in crude oil prices and geological tensions forced the key players to increase the price, including Indorama Ventures and MEGlobal.

European market has experienced the same trend for PET prices, In the first week of March 2024, the price escalated by around 1.2% in Germany while in previous month, price rose by 5.8% on month-on-month basis. This is attributed to the intense feedstock price and supply chain disturbance. Concurrently, the downstream market has lackluster demand during recent months that is why commodity prices hold price stability from the last multiple weeks.

However, price is expected to step up in March 2024, attributed to numerous factors including the protests across the European nations, from Spain to Belgium, farmers are angry on the Governments Green policies and protesting against the policies i.e. Nitrogen emission curbs and Pesticide bans, high business cost and the increasing competition due to abroad imports, creating turmoil for road logistics across the European border as several borders has sealed by the angry protestors, is another interruption for European region along with the global marine logistics disruption.

To Conclude, PET price is expected to increase during upcoming time in USA as well as in European market in coming period as extreme cold weather has been improved that will enlarge the demand from downstream beverages and food packaging industries. Furthermore, crude oil fluctuation coupled with the logistics interruptions may force the producers to increase the price of its feedstock and PET.

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Sumitomo Chemical Co., Ltd. has decided to transfer its shares in Sumika Color Co., Ltd. (“Sumika Color”) to Nippon Pigment Company Limited (“Nippon Pigment”) and concluded a share transfer agreement with Nippon Pigment, said the company.

The transfer is scheduled to take place on April 30, 2024.

We remind, Sumitomo Chemical has decided to close down its production facilities for cyclohexanone (also known as anone) at its Ehime Works located in Niihama City, Ehime, Japan and exit the business, said the company. The closure of the production facilities is scheduled for the end of March 2024.

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