Europe ELV directive may not be ambitious enough: EuRIC

Spanish Market: Petrochemicals
09/07/25

European circular automotive ambitions are at risk before they have started, according to European recycling industries association EuRIC.

Following the European Parliament's vote on the end of life vehicles (ELV) directive yesterday, EuRIC warned that low recycled content targets, loopholes and legal uncertainties risk holding back the investments and market confidence needed to scale Europe's circular ELV economy in practice.

The parliament's committees agreed on a reduced recycled content target for plastics to 20pc, with only 10pc post-consumer, and a closed-loop target to 15pc, within six years of the rules' entry into force. The recycled content target is increased to 25pc within 10 years of entry into force, but half of the target can be met with pre-consumer waste.

EuRIC said the vote on ELV regulation is a welcome step for the industry but feels the targets fall short of the potential for the market, ignoring the European Commission's Joint Research Centre (JRC) evidence that higher post-consumer recycled content targets are feasible and realistic. Unclear review clauses add further risk for recyclers already facing a 30pc recycling obligation without guaranteed markets according to the association.

With the European recycling industry under pressure, EuRIC also highlighted the lack of a mirror clause for imports under fair conditions further threatens European recyclers. The association urged co-legislators to strengthen targets and close loopholes in the next steps of negotiations.

By Chloe Kinner

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18/07/25

US home building weak in June, PU buyers cautious

Houston, 18 July (Argus) — US housing permits and starts in June remained below already depressed year-earlier levels, keeping polyurethane (PU) buyers cautious. Permits for privately-owned units, a sign of future construction, were at a seasonally-adjusted annual rate of 1.397mn units in June, according to the US Census Bureau and Department of Housing and Urban Development (HUD) data. This is down by 4.4pc from the same time a year prior but marks a slight 0.2pc increase from revised figures in May. Housing starts saw less of a decline, slipping by 0.5pc to an annual rate of 1.321mn units in June from a year earlier. Starts in June jumped by 4.6pc from May, led by a near 31pc monthly rise in new buildings of five or more units. Single-family housing starts in June declined by 10pc to 883,000 units from June 2024 and retracted by 4.6pc from the prior month. The latest builder sentiment survey for July sustained a weak view for the single-family housing market despite a nominal increase. The reading reversed the downward sentiment registered in June, rising by 1 point to 33, according to the National Association of Home Builders (NAHB)/Wells Fargo Housing Market Index (HMI). This is still well below builder confidence at the start of the year when January registered at 47. Residential construction has lagged all year whereas commercial and government construction projects have driven summer PU demand, according to market participants. The building blocks of polyurethanes, such as isocyanates, go into insulation, roofing applications and carpet underlay. Market participants saw the usual uptick for public school projects in June as students are out on summer holiday and anticipate it to slow by August. Renovation and re-roofing projects for polymeric MDI (PMDI) into insulation board rose in June while demand into spray foam insulation, typically used in residential settings, declined. Overall, many participants reported demand was up from the spring but not at normal levels for this time of year. A few price increase announcements came out in May for PMDI for June or July implementation depending on contracts. The announcements were out with the idea that tariffs would slow imported volumes and tighten domestic supply during the peak demand season. However, this did not occur in June as participants saw a smaller than normal lift in demand and ample domestic supply available. Argus assessed June PMDI contract prices flat from the month before. By Catherine Rabe Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Brazil's Cade clears Braskem stake transfer

17/07/25

Brazil's Cade clears Braskem stake transfer

Sao Paulo, 17 July (Argus) — Brazil's antitrust watchdog Cade approved without restrictions the sale of Novonor's stake in petrochemical major Braskem to investment fund Petroquimica Verde, controlled by businessman Nelson Tanure. Initially disclosed in May , the R7.7bn ($1.38bn) deal involves the transfer of shares held by NSP Investimentos, a Novonor vehicle that owns 50.1pc of Braskem's voting capital. With the regulatory green light, the transaction now enters a 15-day legal window for third-party comments or potential review by Cade. The possible shift in control of Braskem, one of Latin America's largest petrochemical companies, could mark a strategic turning point. Petroquimica Verde, which has expressed interest in expanding its footprint in the sector, would assume the company's leadership if the deal is finalized. Despite the favorable ruling, key hurdles remain. Brazil's state-controlled oil company Petrobras, which holds approximately 47pc of Braskem's voting shares, has a right of first refusal. Additionally, unresolved issues related to financial liabilities and environmental claims, such as the land subsidence case in Maceio , in northeastern Alagoas state, continue to generate uncertainty in the market. Investors are closely monitoring the process. A change in ownership could bring shifts in governance and corporate strategy, potentially impacting the performance of Braskem's shares traded on the Sao Paulo stock exchange B3, the New York Stock Exchange NYSE and Madrid's Latibex exchange. Braskem's sale is critical for Novonor, which intends to use any proceeds to repay R14bn ($2.47bn) in debt to creditors. Novonor — formerly known as Odebrecht — is currently undergoing a judicial recovery process. Braskem is the largest producer of thermoplastic resins in the Americas and a leader in biopolymer production. Tanure, a Brazilian entrepreneur known for acquiring and restructuring distressed companies, has been involved in high-profile investments in sectors including energy and real estate. His portfolio includes stakes in power company Light, real estate firm Gafisa and independent oil company Prio. Braskem reported a first quarter profit of $114mn on 12 May, recovering from a $273mn loss a year earlier and a $967mn loss in the fourth quarter of 2024. By Fred Fernandes Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

New tariff threat could disrupt Mexico GDP outlook

16/07/25

New tariff threat could disrupt Mexico GDP outlook

Mexico City, 16 July (Argus) — Mexico's association of finance executives IMEF held its 2025 GDP growth forecast steady at 0.1pc in its July survey but warned the outlook could deteriorate if the US raises tariffs to 30pc. The survey of 43 analysts maintained projections for year-end inflation at 4pc and for the central bank's benchmark interest rate to fall from 8pc to 7.5pc by the end of 2025. The sharpest variation came in formal employment, after Mexico's social security administration IMSS reported a net loss of 139,444 formal jobs in the second quarter. IMEF cut its 2025 job creation forecast to 160,000 from 190,000 in June — the seventh and largest downgrade this year. Job losses increased in April, May and June, "a situation not seen since the pandemic in 2020," IMEF said. "If this trend is not reversed, the net number of formal jobs could fall to zero by year-end." "It is still too early to call it a recession, but the rise in job losses is worrying," said Victor Herrera, head of economic studies at IMEF. "The next risk we face is in auto plants. Some halted production after the 25pc US tariff was imposed in April. They did not lay off workers right away — they sent them home with half pay. But if this is not resolved in the next 60-90 days, layoffs will follow." The July survey was conducted before US president Donald Trump said on 12 July he would raise tariffs on Mexican goods from 25pc to 30pc starting 1 August. "What we have seen in the past is that when the deadline comes, the tariffs are postponed or canceled," Herrera said. "Hopefully, that happens again. If not, you can expect GDP forecasts to shift into contraction territory." While the full impact would vary by sector, Herrera said the effective average tariff rate would rise from 4pc to 15pc, with most exports either exempt or subject to reduced rates under regional content rules. But 8–10pc of auto exports would face the full 30pc duty. IMEF expects the peso to end 2025 at Ps20.1/$1, stronger than the Ps20.45/$1 estimate in June. But the group warned that rising Japanese rates — which influence currency carry trades — and falling Mexican rates could put renewed pressure on the peso once the dollar rebounds. For 2026, the GDP growth forecast dropped to 1.3pc from 1.5pc, while the peso is seen ending that year at Ps20.75/$1, slightly stronger than the previous Ps20.90/$1 forecast. By James Young Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Alt-fuel ship orders fall in 1H25: DNV

15/07/25

Alt-fuel ship orders fall in 1H25: DNV

Sao Paulo, 15 July (Argus) — Ship orders for new alternative-fuelled vessels fell to 151 in the first half of 2025 compared with 179 a year earlier, according to Norway-based classification agency DNV. These orders represented 19.8mn gross tonnes, up by 78pc from the same period in 2024. LNG-fuelled vessels accounted for 87 of the new orders in the first half, followed by 40 methanol-fuelled ships, 17 LPG-powered vessels, and four hydrogen and three ammonia-fuelled ships. Orders stood at 19 in June, up from 16 in May, with two of these LPG-fuelled carriers. The total fleet of ships that could run on LPG stood at just over 150 in the final quarter of last year , with around 126 on order by 2028 following the latest additions, as orders lag other fuel types despite low prices because of safety issues and a lack of four-stroke engines. New orders, 1H 2025 Fuel Number of vessels LNG-fueled 87 Methanol-fueled 40 LPG-fueled 17 Hydrogen-fueled 4 Ammonia-fueled 3 DNV Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

EU chemical plan neglects immediate pressures: Ineos

15/07/25

EU chemical plan neglects immediate pressures: Ineos

London, 15 July (Argus) — The EU's new chemical industry plan fails to respond to key immediate pressures on Europe's industry, UK-based Ineos had said. These pressures include the high cost of natural gas and the growing cost of carbon emissions, it said. The European Commission proposed its European Chemicals Industry Plan on 8 July to help the EU sector tackle high energy costs, global competition and weak demand. The commission said its plan could save the sector €363mn/yr. Without action, the competitiveness of European industry may erode, and investment may shift elsewhere, Ineos said. It said its integrated petrochemicals facility in Cologne, Germany, costs €240mn/yr ($280mn) more to operate than it would in the US because of the higher gas, electricity and carbon bills in Europe. More than 20 chemical plants have closed in Europe in the past two years, according to Ineos. "Immediate reduction of gas pricing and removal of carbon costs must be the next step if we are serious about maintaining a chemical industry in Europe." Ineos said. The European Chemical Industrial Council (Cefic) said the Chemical Industry Action Plan is an important step towards improving the competitiveness and resilience of the EU chemical industry. "Co-ordinated action by member states is now urgently needed to turn this signal into results," it said. "Each day of inaction further weakens European industry." By Tim van Gardingen Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

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Europe ELV directive may not be ambitious enough: EuRIC

Related news posts

US home building weak in June, PU buyers cautious

US home building weak in June, PU buyers cautious

Brazil's Cade clears Braskem stake transfer

Brazil's Cade clears Braskem stake transfer

New tariff threat could disrupt Mexico GDP outlook

New tariff threat could disrupt Mexico GDP outlook

Alt-fuel ship orders fall in 1H25: DNV

Alt-fuel ship orders fall in 1H25: DNV

EU chemical plan neglects immediate pressures: Ineos

EU chemical plan neglects immediate pressures: Ineos

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