Page 56 - Plastics News Issue June 2025
P. 56
BUSINESS NEWS
for the short term — we will see a softening of lowing the May 12 trade deal with China, James
global trade during this period of elevated tariffs Derrico, vice president of new business at dis-
and uncertainty,” said port Executive Director tributor Cellmark, told Plastics Recycling Update.
Gene Seroka in a May 19 briefing. However, he said it was unclear whether the up-
tick in interest would translate into higher prices.
First-quarter PET imports, which include both re- “With no real conclusion on the tariffs and con-
cycled and virgin resin, were 428,111 metric tons, stant change, we’re still seeing overall instabil-
higher on the year by 15%, according to U.S. In- ity.”
ternational Trade Data. PE exports rose by 5%
on the year to 3.98 million metric tons. In addition to tariffs, uncertainty about federal
funding has put some infrastructure projects in
However, first-quarter scrap plastic exports fell doubt, touching recycled plastics sellers with
by 9% to 98,831 metric tons, and scrap imports those end uses, a North American seller told
dropped by 23% to 99,716 metric tons. Plastics Recycling Update. Also, North Ameri-
can companies that send finished products con-
Looking ahead, an early heat wave in the south-
ern U.S. could increase demand for bottled taining recycled plastics into the U.S. have seen
a drop in shipments, which affects demand as
beverages and possibly lead to an increase in
collection. And the Atlantic hurricane season is well. The seller requested anonymity, to candidly
discuss sensitive trade matters.
June 1-Nov. 30, bringing with it the potential for
an increase in demand for bottled water if a ma- Domestic demand for HDPE bales correlates
jor storm hits the U.S. and affects public water with construction activity, both for housing and
quality. In addition, hurricane damage could im- for infrastructure projects.
pact production of virgin polymers, which is con-
centrated in the Southeast. For May, builder confidence dropped by 6 points
to 34 in May, according to the National Associa-
HDPE – housing/construction
tion of Home Builders/Wells Fargo Housing Mar-
HDPE natural bales sank on the month, in what ket Index. A number above 50 indicates overall
Goger termed a correction after reaching record optimism in the housing market, while numbers
highs. They remain nearly three times higher on below 50 indicate pessimism. The index started
the year, however. the year at 47 in January.
Colour HDPE bales also fell dramatically, which April building permits fell by 3.2% on the year to
he attributed to weak demand in the agricultural 1.412 million, while housing starts fell by 1.7% on
sector. In contrast to the natural bales, colour the year to 1.361 million, according to U.S. Cen-
bales are lower by 82% on the year. When do- sus Bureau data.
mestic demand for colour HDPE is weak, bales Looking ahead, a particularly active hurricane
often are exported to Southeast Asia.
season can both hinder construction projects
Overseas buying interest, specifically in South- and provide opportunities for rebuilding.
east Asia, for colour HDPE bales, mixed rigids North American trade partners aim to minimize
and LDPE film bales picked up immediately fol-
risk
56 PLASTICS NEWS June 2025
