Market Update — December 2024
Engineering Polymers Flat, Plastic Recycling Economics
Like many polymers, ABS continues to look flat currently. Demand is soft with automotive, and supply is currently available, while pricing has been flat over the last few months. It seems that pricing will remain flat into 2025. Polycarbonate is also flat into the new year with low demand from automotive and construction, the same story we’ve heard all year. Chemical Market Analysis (CMA) reported PC to be flat in the last 60 days and looking forward, we don’t see a lot of movement based on the current environment.
Nylon 6 and 66 are similar in scope relative to supply and pricing. Supply is available and demand is lackluster. Costs are holding steady over the last 60 days or so, but prices are trending slightly down (2 to 3 CPP) for both materials. China is looking to expand its capacity for nylon 66 in the next few years, and they will be integrated, so they will be adding low-cost material locally. Are more imports headed our way? It depends on the tariffs.
Speaking of tariffs, the new administration has announced the intent to put 25% tariffs on products coming from China, Canada, and Mexico into the United States. This will have an impact on costs and therefore consumer prices. The official policy has not been published, though once it is, we’ll be communicating what we hear.
Ascend Performance Materials is closing the Greenwood, S.C., nylon plant and moving its polymer operations to their plant in Pensacola, Fla. The company reported to Plastics News that the global economic pressure, especially in the automotive and construction sectors, motivated the decision. This will affect about 200 employees. From a supply chain perspective, there doesn’t seem to be an impact given the current state of the market with lower-than-expected demand and readily available supply. Nylon needs? Give Star a Call!
An article in Plastics News the week of November 25, written by Steve Alexander, president of the Association of Plastic Recyclers is below. It is very ‘on point’ for growing recycling efforts on the whole.
Real challenge in plastics recycling is economics, not capacity
Elizabeth Carroll’s remarks in your story on the challenges facing plastics recycling (“Lack of recycling capacity continues to stymie sustainability goals,” Nov. 15) correctly points out that growth in plastics recycling is facing challenges. However, the problem is not primarily about insufficient capacity — it’s about economics.
The reality is that mechanical recyclers already have ample capacity to significantly increase the amount of plastics recycled. This capacity remains underutilized because the economics are out of alignment. The issue isn’t a lack of infrastructure; rather, brand companies are unwilling to pay recyclers prices that make the economics viable when lower-cost virgin resin can be used for the same packaging. If brand companies truly want to meet the ambitious sustainability goals they’ve set, they need to commit to paying a fair price for recycled material. Without this financial commitment, recycling facilities cannot operate at their full potential, and the industry’sgrowth will stagnate.
To move forward, we need systemic changes that align the economics of recycling with sustainability goals. This could include public policies that incentivize the use of recycled materials, measures to discourage reliance on virgin plastics, or broader implementation of extended producer responsibility programs. Ultimately, however, it comes down to the brands: If they are serious about sustainability, they must demonstrate this commitment by being willing to pay the costs associated with using recycled materials, including paying a fair price to recyclers. The recycling industry has the capacity to do far more. The question is whether brands are willing to pay the price to make it happen.
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And finally,
Don’t forget that Star Plastics is your local compounder partner with Lati Products out of Italy! We have over a dozen grades of Lati products which are produced locally and we can distribute their entire product line globally. https://www.starplastics.com/lati-distribution-products/ Star Plastics is not only your custom color compounder, but we also have standard materials on the floor ready for quick shipment. PC, ABS, PCABS in GP and FR versions in black and natural.