BARCELONA (ICIS)–Europe’s new €800/tonne
charge on waste plastic packaging will force
chemical supply chains to take recycling more
seriously and could drive product substitution.
– Charge agreed on EU summit last week could
lead to substitution away from polymers, which
are less easy to recycle, or to other
materials
– It will accelerate adoption of recycling
technology and infrastructure
– Challenges as recycled polymer sector not yet
developed enough
– Polymer and carbon taxes will act as a
“short, sharp shock” for chemical companies and
supply chain
– Move to local, sustainable production will
accelerate
– Oil prices propped up by China and India
building reserves which are now full
– Hopes for a V-shaped recovery
evaporating
– China may switch from being the world’s
largest net importer of polypropylene (PP) to
net exporter by 2022
– Global PP moving towards “perfect storm” of
over-capacity amid structural changes to
demand
– PP producers must focus on sustainability,
affordability, local supply chains
Interview with Paul Hodges,
chairman of International eChem; John
Richardson, ICIS senior consultant
Asia; Mark Victory, ICIS
senior recycling editor, and Helen
McGeough ICIS senior analyst, plastics
recycling.
