Engineering plastics (POM, PBT)

RIO DE JANEIRO (ICIS)–In just a few years, global automotive majors have switched their focus from a quick, all-electric production to a more hybrid model, an executive at US crude oil major Chevron said on Tuesday. Chris Castanien, global industry liaison at Chevron and lubricant additive expert, said that most automotive majors who had set up target to go all-electric or nearly all-electric by 2030 have dropped those plans as intake among consumers remains slow. This has happened even after authorities in North America or Europe have poured “tremendous amount of money in trying to force everyone” into the energy transition. Castanien was speaking to delegates at the 14th International Summit with the South American Market 2024 organized by specialized publication Lubes em Focus, which focuses on base oils. ICIS is a partner in the event. BILLIONS – BUT THE JUMP IS NOT HAPPENINGAnyone in the lubricants industry would be pleased to see the initially quick transition to electric mobility some authorities had planned is not happening – they are an interested party which would lose out much if ICE engines – combustion engines – ran on fuels would go out of the market. Therefore, Castanien was somehow pleased to list the many plans in the EU and the US which had planned for a quick electric vehicles (EVs) implementation, including the US’ $1 trillion New Green Deal in 2021 or the consequent $67 billion investments contemplated in the CHIPS Act or the $369 billion in the Inflation Reduction Act (IRA). “The US’ EPA [Environmental Protection Agency] had forced a ruling that by 2032 around two thirds of cars should be EVs; the EU issued a ban on ICE engines by 2035 – well, I think those targets will not happen,” said Catanien. “Moreover, now we are seeing a lot of protectionist tariffs against Chinese EVs: we want people to make and use EVs, but we don’t want the Chinese to make them.” The Chevron executive went on to say that the US is still a “long way” to meet its own targets on charging points, for instance, which added to the considerably higher cost of EVs is putting off consumers. And this consumers’ reluctance, he went on to say, is even happening when many jurisdictions are implementing fiscal incentives and rebates for EVs. “In the US, you even get the case of California, where HOVs [high occupancy vehicle lanes] are now allowing EVs even if it’s only the driver inside the car…” he said. Thus, the initial change planned by automotive majors – even with thousands of redundancies of ICE engines engineers – is giving way to a slower implementation of the EV push and mentioned the case of Germany’s major Mercedes. “Only a few years ago, Mercedes said they would be making all vehicles electric by 2030 – they don’t say that anymore. Their updated target is aiming to make 50% of its fleet electrical by that year,” said Castanien. “[US major] Ford has said it is losing $64,000 every time they sell an EV. Tesla was planning a gigafactory in Mexico: they have dropped those plans. The shift towards more hybrid vehicles and not purely EVs is happening – this is a big change.” The automotive industry is a major global consumer of petrochemicals, which make up more than one-third of the raw material costs of an average vehicle. The automotive sector drives demand for chemicals such as polypropylene (PP), along with nylon, polystyrene (PS), styrene butadiene rubber (SBR), polyurethane (PU), methyl methacrylate (MMA) and polymethyl methacrylate (PMMA). Base oils, also called lubricants, are used to produce finished lubes and greases for automobiles and other machinery. The 14th International Summit with the South American Market 2024 runs in Rio de Janeiro on 2-3 July.

02-Jul-2024

RIO DE JANEIRO (ICIS)–US manufacturing activity remained in contraction territory in June but output in the chemicals sector was healthy on the back of healthy new orders, the Institute of Supply Management’s (ISM's) purchasing managers’ index (PMI) survey showed on Monday. The PMI stood at 48.5% in June, down from 48.7 points in May. The contraction in June was the third consecutive monthly one, and the 19th in the last 20 months. Chemicals, however, posted healthy activity with one chemicals player reporting in the ISM survey “high volumes of customer orders”. In plastics and rubber, a respondent described increased orders on the back of seasonal restocking, but the sector overall remained in contraction territory. “Demand was weak again, output declined and inputs stayed accommodative. Demand slowing was reflected by the New Orders Index improving to marginal contraction, New Export Orders Index returning to contraction, Backlog of Orders Index dropping into stronger contraction territory and Customers’ Inventories Index moving into the low side of the ‘just right’ range, neutral for future production,” said Timothy R Fiore, chair of the ISM’s committee compiling the PMI index. “Output (measured by the Production and Employment indexes) declined compared to May, with a combined 3.5-percentage point downward impact on the Manufacturing PMI calculation. Panelists’ companies reduced production levels month over month as head count reductions continued in June.” According to ISM, eight manufacturing industries reported growth in June: printing and related support activities; petroleum and coal products; primary metals; furniture and related products; paper products; chemical products; miscellaneous manufacturing; and nonmetallic mineral products. Nine industries reported contraction: textile mills; machinery; fabricated metal products; wood products; transportation equipment; plastics and rubber products; food, beverage and tobacco products; electrical equipment, appliances and components; and computer and electronic Products. ICIS VIEWKevin Swift, economist at ICIS, highlighted how both new orders and order backlogs fell compared with May. “The reading came below expectations of improvement. The expansionary reading in March ended 16 months of contraction in manufacturing but since then, the trend has been soft. June marks a third contractionary reading and was disappointing… The chemical industry gained for the sixth month after 16 months of decline.” “New orders and order backlogs, when combined with the reading on inventories, are good indicators of future activity. Inventories contracted at faster pace as well. An uptick in orders could translate into higher production.” Earlier on Monday, analysts at S&P Global said manufacturing in Brazil – the Americas’ second largest economy – had recovered slightly from floods-hit May, although some economic challenges such as the depreciation of the Brazilian real were putting a cap on growth prospects, they added. US MANUFACTURING June 2024 Index Series Index Jun Series Index May Percentage Point Change Direction Rate of Change Trend* (Months) Manufacturing PMI 48.5 48.7 -0.2 Contracting Faster 3 New Orders 49.3 45.4 +3.9 Contracting Slower 3 Production 48.5 50.2 -1.7 Contracting From Growing 1 Employment 49.3 51.1 -1.8 Contracting From Growing 1 Supplier Deliveries 49.8 48.9 +0.9 Faster Slower 4 Inventories 45.4 47.9 -2.5 Contracting Faster 17 Customers’ Inventories 47.4 48.3 -0.9 Too Low Faster 7 Prices 52.1 57.0 -4.9 Increasing Slower 6 Backlog of Orders 41.7 42.4 -0.7 Contracting Faster 21 New Export Orders 48.8 50.6 -1.8 Contracting From Growing 1 Imports 48.5 51.1 -2.6 Contracting From Growing 1 Thumbnail shows an automobile manufacturing line. Image by Anna Szilagyi/EPA-EFE/Shutterstock)

01-Jul-2024

HOUSTON (ICIS)–The Panama Canal Authority (PCA) has increased the maximum allowable draft to transit the Neopanamax locks effective immediately, announced that another increase will take effect on 11 July, and will add an additional booking slot in the Neopanamax locks during Booking Period 2 for booking dates beginning 5 August. Source: Panama Canal Authority Water levels at Gatun Lake, the freshwater lake that feeds the canal’s locks have improved recently amid the arrival of the rainy season after a prolonged drought, allowing the PCA to continue to add transit slots. Water levels at Gatun Lake, currently at 81.3 feet, are projected to be at 82.1 feet by mid-July and to 87 feet by December. The transit restrictions that began in July 2023 – the first time in the canal’s history that limitations were placed on the number of daily transits – have gradually eased over the past few months and are approaching the average daily transits of 36-38/day seen prior to impacts from the drought. The improved conditions at the canal are likely to improve transit times for vessels travelling between the US Gulf and Asia, as well as between Europe and west coast Latin America countries. This should benefit chemical markets that move product between regions, including those in the following chart. The bottleneck at the Panama Canal has had varying affects on US chemical markets. Formosa Plastics USA had to shut down its EG2 unit because of negative impacts on monoethylene glycol (MEG) exports because of the backlog and delays transiting the canal. The majority of product from the unit is expected to be exported to Asia. The company restarted the unit this week. Higher water levels at the Panama Canal could also have knock-down effects on US natural gas demand, ICIS feedstocks analyst Barin Wise said. If higher water levels at the canal enable liquefied natural gas (LNG) shippers to cut down on travel times from the US Gulf Coast to Asia, it could encourage LNG export plant managers to maximize output, he said. AUCTION PRICES EASE The PCA said recently that auction prices have levelled off since the peak period last year. In October-November 2023, there was a surge in auction prices related to a market-driven congestion premium, though this is no longer the case, the PCA said. Auction prices are generally near normal levels presently, though auctions remain an invaluable tool and option for customers who may otherwise not have secured reservations. The PCA noted that auction prices are also not set by the waterway, but rather influenced by many factors and market dynamics, including internal considerations such as waiting times and queue lengths, as well as external elements like charter rates and bunker prices. Additionally, the specific preferences and needs of individual customers, which may not be fully captured by the route value model, can also influence auction outcomes. WAIT TIMES FOR NON-BOOKED VESSELS Wait times for non-booked southbound vessels ready for transit have been relatively steady at less than two days, according to the PCA vessel tracker and as shown below. The tracker is only for non-booked vessels in the queue and shippers should consider two additional days as a minimum to estimate transit times for unscheduled vessels, the PCA said. Focus article by Adam Yanelli With additional reporting by Melissa Wheeler, Bryan Campbell and Emily Burleson Thumbnail photo: Shows a container ship transiting the Panama Canal. (Source: Courtesy of PCA)

28-Jun-2024

LONDON (ICIS)–Senior Editor for Recycling, Matt Tudball, discusses the latest developments in the European recycled polyethylene terephthalate (R-PET) market, including: Colorless and blue bale prices rise in eastern Europe PRSE: Most see stable market over summer PRSE: Confusion and frustration around lack of SUPD clarity PRSE: SUPD impact on R-PET not until Q4 earliest

27-Jun-2024

NEW YORK (ICIS)–In an era of heightened competition and global overcapacity for chemical companies, cost competitiveness and efficiency become even more important. And artificial intelligence (AI) may be the key to unlocking cost savings beyond the usual measures. On 25 June, Covestro announced a global transformation plan to achieve annual savings of €400 million in material and personnel costs by the end of 2028. The company specifically cited the use of AI to “continue increasing efficiency and productivity in the future”. Covestro’s cost savings program will include “making production, administrative units and other areas as efficient as possible and continuously expanding the innovation pipeline”. Sounds right up AI’s alley. AI could be particularly useful for the chemical industry, especially as labor productivity (sales per full-time equivalent employee) has failed to increase more than 1%/year on average over the past 15 years, and lags behind other asset-intensive manufacturing industries such as automotive, mining, oil and gas, utilities, steel, cement and paper, according to a study by Accenture showcased at the American Chemistry Council (ACC) Annual Meeting earlier in June. The chemical industry is arguably more complex than other sectors, making productivity gains more of a challenge. However, this also means it has more to gain. “Generative (gen) AI has the potential to revolutionize work and workflows across the entire value chain. Our research indicates that gen AI will affect about 31% of working hours in the chemical industry through automation or augmentation,” said Accenture in the study. “This large potential is likely why 97% of leaders in the chemical industry believe that gen AI will positively affect their company’s market share in the next three years,” it added. Chemical companies can restructure work to allow gen AI to take on routine tasks, freeing up workers to focus on more creative and meaningful tasks. Production employees, who make up almost half of the workforce, spend 90% of their time on transactional matters and tasks involving simple judgment and only 10% of their time on complex judgmental tasks, according to Accenture. “We as an industry are very slow to adopt new technologies that will help us be more productive and better. We have to find a way to balance that,” said Robert King, executive vice president of the Crop Protection Business Unit at Corteva Agriscience, at the Accenture breakfast briefing at the ACC Annual Meeting. GEN AI FOR KNOWLEDGE CAPTURELabor productivity will become an even bigger challenge for chemical companies, given demographic and skills challenges. Around 30% of employees in the industry are 50 years of age or older, and student enrollment in engineering and business is declining, further shrinking the talent pool, the study found. And with an aging workforce, it is critical to capture knowledge and preserve valuable insights from these workers prior to retirement, to be able to transfer them to new and existing employees. “Companies can draw on gen AI for help, using large language models (LLMs) to interview retiring employees and to document their expertise in handling specific situations and challenges,” the study said. On the product innovation side, chemical companies such as Dow are already using AI to improve product formulation and accelerate time to market. While AI will not solve everything and may even create new challenges, it will be a key piece to solving the labor productivity puzzle. Companies that figure it out and leverage this technology will gain a competitive edge. Insight article by Joseph Chang

27-Jun-2024

SAO PAULO (ICIS)–Brazil’s chemicals producers, represented by trade group Abiquim, have gotten on board with peer groups and trade unions in their lobbying for higher import tariffs for dozens of products as the government’s decision looms. Led by Abiquim, a total of 28 trade groups, trade unions, industrial development groups, one professional association and one company have signed a manifesto pleading for higher import tariffs to safeguard an industry which, in their view, is being threatened by lower priced imports which are produced with lower environmental standards. “The Brazilian chemicals input production chain, fundamental to the country's economic and technological development, faces unprecedented challenges that threaten its very existence and the future of sustainable solutions for Brazilian industry,” said the manifesto. “Ensuring measures to protect the trade balance is vital to maintain the operation of the chemical chain and attract new investments.” In May, chemicals producers – via Abiquim but also as individual companies – proposed increasing tariffs in more than 100 chemicals, most of them from 12.6% to 20%, in a public consultation held by the Brazil’s government body the Chamber of Foreign Commerce (Camex). A decision is expected in August as the latest. Other trade groups in the chemicals chain, such as Abiplast, representing plastics transformers, do not support higher tariffs as most of their members import product to meet their demand, and are doing their own lobbying not to increase tariffs. ABIQUIM LOBBYING GETS PARTNERSAs well as Abiquim, other trade groups within chemicals signed the document, such the Brazilian Association of Alkali, Chlorine, and Derivatives Industry (Abiclor); the Brazilian Association of Fine Chemical, Biotechnology and Specialty Industries (Abifina); and the Brazilian Association of Artificial and Synthetic Fiber Producers (Abrafas) also signed the document. In total, 11 trade groups and 12 trade unions signed the document, as well as industrial development groups and other players in the chemicals chain. See bottom for full list of signatories. The backing of the unions is important because it is likely to resonate in the corridors of power in Brasilia, where the left-leaning government of President Luiz Inacio Lula da Silva got into office thanks in part to the votes of the industrial workers constituency who voted for Lula’s Workers Party (PT) in 2023 under the promise of more and better paid industrial jobs. “The Brazilian chemicals input production chain, fundamental to the country's economic and technological development, faces unprecedented challenges that threaten its very existence and the future of sustainable solutions for Brazilian industry. Ensuring measures to protect the trade balance is vital to maintain the operation of the chemical chain and attract new investments,” said the manifesto. “What we are witnessing by allowing a surge in imports of products without environmental commitments is the failure to comply with a global agenda, with negative contributions to the fight against climate change.” As the left-leaning Lula cabinet aims to increase public spending, the manifesto also touches on Abiquim’s calculations in the decrease in tax receipts by the Brazilian Treasury in 2023, as a consequence of lower imports – the trade group said the state’s receipts decreased during that year by Brazilian reais (R) 8.0 billion ($1.45 billion). “[The decrease in tax receipts] directly impacts investments in the production sector and in several other areas of public policy. Continuing to allow the unbridled entry of chemical products is a paradox for the policy that Brazil has planned in the context of neo-industrialization, while imports already account for 50% of demand in the chemicals industry,” said the manifesto. “Because of this, some plants are idle, with preventive maintenance anticipated, while others are hibernating plants. And this affects not only the production of chemical inputs, but an entire broad supply chain of raw materials, services, and energy supply related to the sector.” The Abiquim-led manifesto was also signed by several trade unions in some of Brazil’s key petrochemicals hubs, such the Chemists Union of Sao Paulo; the Union of Chemical Industries of Rio Grande do Sul (Sindiquim), and the Union of workers in the chemical, petrochemical, plastic and pharmaceutical industries of the State of Bahia (Sindiquímica Bahia). According to Abiquim’s figures, Brazil’s chemicals production and related chain employs around 2 million workers, representing 12% of the country’s industrial GDP. Earlier in June, the director general at Abiquim said in an interview with ICIS that the request for higher tariffs was only one of the proposals presented to the government to safeguard producers' global competitiveness. “What we have presented to the government is the need to undertake action on three main fronts: in the short term, import tariffs, but in the medium and long term we also need a structural plan to address natural gas prices, which are seven times higher in Brazil than in some other jurisdictions, as well as a stimulus plan covering the whole chemicals production chain,” said Andre Passos. The list of signatories to the manifesto also includes one company, one professional association, and two industrial development groups: TRADE GROUPS 1. Chemical Industry Association (Abiquim) 2. Association of Piped Gas Distribution Companies (Abegas) 3. Association of Alkali, Chlorine, and Derivatives Industry (Abiclor) 4. Association of Fine Chemical, Biotechnology and Specialty Industries (Abifina) 5. Association of Pharmaceutical Inputs Industry (Abiquifi) 6. Association of Glass Industries (Abividro) 7. Association of Independent Oil and Gas Producers (ABPIP) 8. Association of Artificial and Synthetic Fiber Producers (Abrafas) 9. Association of Campos Elíseos Companies (Assecampe) 10. Association of Natural Gas Pipeline Transportation Companies (Atgás) 11. Federation of Industries of the State of Alagoas (FIEA) TRADE UNIONS 12. Federation of Chemical Workers of the CUT of the State of Sao Paulo (Fetquim – CUT SP) 13. Single Federation of Oil Workers (FUP) 14. Unified Chemical Union 15. Chemists Union of Sao Paulo 16. Plastic and Paint Industries Union of the State of Alagoas (Sinplast-AL) 17. Industry Union of Chemical Products for Industrial Purposes of the State of Rio de Janeiro (Siquirj) 18. Industry Union of Chemical Products for Industrial Purposes, Petrochemicals and Synthetic Resins of Camaçari, Candeias and Dias D'Avila (Sinpeq) 19. Industry Union of Chemical Products Chemicals for Industrial and Petrochemical Purposes in the State of Sao Paulo (Sinproquim) 20. Union of Chemical Industries of Rio Grande do Sul (Sindiquim) 21. Union of Chemists of ABC (Sao Paulo state region) 22. Union of workers in the chemical, petrochemical, plastic and pharmaceutical industries of the State of Bahia (Sindiquímica Bahia) 23. Union of Workers in the Chemical, Pharmaceutical and Fertilizer Industries of Baixada Santista (coastal Sao Paulo area) 24. National Confederation of the Chemical Branch of CUT (CNQ-CUT) INDUSTRIAL DEVELOPMENT GROUPS 25. Camacari Industrial Development Committee (Cofic) 26. Industrial Development of the Rio Grande do Sul Pole (Cofip RS) PROFESSIONAL ASSOCIATIONS 27. Federal Council of Chemistry (CFQ) COMPANIES 28. Forca Quimica ($1 = R5.51)

26-Jun-2024

SINGAPORE (ICIS)–Saudi Arabia's Methanol Chemicals Co (Chemanol) has signed a 20-year deal to supply methanol to the Amiral petrochemical project of Saudi Aramco Total Refining and Petrochemical Co (SATORP). Under the agreement, Chemanol will supply 100,000 tonnes of methanol to SATORP on an annual basis when the complex starts up in three years' time, Chemanol said in a filing on the Saudi Stock Exchange. “The commercial operation [of Amiral complex] and supply [of methanol] are planned to start by the end of 2027,” Chemanol said. It added that "the financial impact of this agreement is currently indeterminable due to the changes in market conditions and product prices at the time of starting to supply the methanol". SATORP, a joint venture between energy giant Saudi Aramco and French TotalEnergies, is expanding operations via building the $11bn Amiral complex in Jubail. The complex is expected to have a mixed-feed cracker and utilities, with a nameplate capacity of 1.65m tonnes/year of ethylene and related industrial gases. Engineering, procurement, and construction (EPC) contracts for the Amiral project were awarded in June 2023 to South Korea’s Hyundai Engineering & Construction. Aramco owns 62.5% of SATORP, while TotalEnergies holds the remaining stake of 37.5%. The companies made a final investment decision on Amiral in December 2022, to enable SATORP’s Jubail refinery to advance Aramco’s liquids-to-chemicals strategy. Amiral will enable SATORP to convert internally produced refinery off-gases and naphtha, as well as ethane and natural gasoline supplied by Aramco, into higher value chemicals. Thumbnail image: At a port in Jeddah, Saudi Arabia, 15 May 2023. (Ute Grabowsky/imageBROKER/Shutterstock)

25-Jun-2024

HOUSTON (ICIS)–Here are the top stories from ICIS News from the week ended 21 June. Brazil’s authorities' response to floods decent, society’s humbling – Abiquim CEO Brazil’s authorities’ response to the devastating floods in Rio Grande do Sul was appropriate, while that of civic society was “marvelous and exemplary”, according to the CEO at chemicals trade group Abiquim. PPG sees strong sustainability demand pull for coatings, race to adapt to new processes – exec US-based coatings producer PPG is seeing robust demand for sustainable products from customers, some of which rely on new, more energy efficient processes, said an executive on Monday. For drought-stricken area, rain in Mexico’s Altamiras could help end petchem crisis – analyst Rains this week in the area where the Altamira petrochemicals hub is located, in Mexico’s state of Tamaulipas, could start fixing the weeks-long drought which has hit companies in the area hard, according to an analyst at supply chain consultancy Everstream. Tropical Storm Alberto floods beaches amid storm surge, high tide, but plant ops unaffected so far Tropical Storm Alberto, the first named storm of the 2024 Atlantic hurricane season, continues to push toward the Mexico coast and a combination of storm surge and high tides are already flooding some Texas coastal communities. Canada chemical industry flags concerns about ‘greenwashing’ amendment Canada’s chemical industry is concerned about the impacts from a legislative amendment to address “greenwashing”, an industry executive said on Friday. Chile’s crusade against plastics prompting stronger sustainability push by firms – trade group Chile remains at the forefront of restrictive plastics regulations in Latin America as the whole political spectrum tries to capitalize in rules which resonate with public opinion, according to the CEO at the country’s trade group Asipla.

24-Jun-2024

SINGAPORE (ICIS)–Here are the top stories from ICIS News Asia and the Middle East for the week ended 22 June 2024. Malaysia May chemical exports rise 0.8% as overall trade continues recovery By Nurluqman Suratman 21-Jun-24 13:47 SINGAPORE (ICIS)–Malaysia's exports of chemicals and chemical products rose by 0.8% year on year to ringgit (M$) 6.31 billion in May amid signs that its overall trade weakness has bottomed out. Asia ACN sees continuation of tight supply, weak demand By Corey Chew 20-Jun-24 11:52 SINGAPORE (ICIS)–The acrylonitrile (ACN) market recently saw a slight decrease in price for both the northeast Asia and India markets. Thai bio-ethylene plant key to growing SCG Chemicals' green plastics portfolio By Nurluqman Suratman 19-Jun-24 13:15 SINGAPORE (ICIS)–Thailand's SCG Chemicals (SCGC) has obtained government approval for its 200,000 tonne/year joint venture bio-ethylene plant in Map Ta Phut, paving the way for the company to reach its target of producing 1m tonnes/year of green polymers by 2030. INSIGHT: Mixed outlook for Asia chemical prices in June – ICIS analysts By Lina Xu 18-Jun-24 12:00 SINGAPORE (ICIS)–There is a mixed outlook for petrochemical prices in Asia in June. Upward support comes from unplanned shutdowns and policy implications. Downward pressure is largely results from seasonal factors. INSIGHT: Asia petrochemical markets grapple with surging shipping costs By Nurluqman Suratman 14-Jun-24 13:54 SINGAPORE (ICIS)–Spot prices of most petrochemicals in Asia have spiked on the back of surging freight and container costs, as logistics challenges which continue to dampen global commodities trades coincide with a seasonal uptick in demand. PODCAST: Propane import growth to remain strong despite bottled LPG replacement By Lillian Ren 20-Jun-24 12:08 SINGAPORE (ICIS)–China's propane import growth is expected to remain strong this year although local authorities have been encouraging food catering and residential end-users to switch from bottled liquefied petroleum gas (LPG) to piped natural gas (PNG).

24-Jun-2024

SAO PAULO (ICIS)–Chile remains at the forefront of restrictive plastics regulations in Latin America as the whole political spectrum tries to capitalize in rules which resonate with public opinion, according to the CEO at the country’s trade group Asipla. Magdalena Balcells added that, however, the regulations have prompted a larger push for sustainability among companies in the plastics chain which, in turn, is making them fitter for the future. Chile was one of the first countries among a very small group in Latin America which introduced, for instance, mandates for carrier plastic bags to be charged in shops, sharply reducing their use. In countries such as Brazil, Latin America’s largest economy, plastic bags are omnipresent, given for free in shops. Their presence as waste in the streets of cities like Sao Paulo is equally omnipresent. A visitor to Chile’s capital Santiago can quickly note the absence of such a waste, among many other differences with other Latin American countries. Interestingly, Balcells also concedes the plastics industry could have done better in some aspects, not least waste – she said producers knew a long time ago the plastic pollution problem was becoming a serious human and environment health issue but were either late to talk about it and alert the authorities, or, in most cases, ignored it entirely. EUROPE-LIKE REGULATIONS – IN LATAMChile’s economic and social indicators tend to be indeed better than in most Latin American countries. According to Balcells, members of parliament (MPs) from all sides get confused about this and propose plastics regulations which are not fit for the country’s reality. But despite its healthier indicators, Chile remains an emerging economy and the infrastructure for collection and recycling of plastics is far from being like those in some European countries which started setting it up in the 1990s. Chile is also debating regulations on recycling targets and bans on certain plastics, following European and other developed countries’ examples. “For example, we had three companies producing plastic bags in Chile, a relatively small country with 30 million residents. Soon after the bags regulation was introduced in a hurry, two of those companies went down. That may not have been significant in the big scheme of things, but it was relevant and painful for some parts of the plastics chain,” she said. “Moreover, in the best Chilean way, municipalities – which were given the last say in the law’s implementation – all fought to be the first in the class, especially those in the south of the country where of course our natural resources are priceless, the Patagonia.” WHAT THE INDUSTRY CAN DO – OR DID NOT DOThe story about the social benefits of plastics – as producers put it – became old as the cons outweighed the pros. The planet is full of plastic waste – several studies have already showed how humans now also contain traces of plastics, which enter their stream from already-contaminated fish, for example. Hydrocarbons have given birth to the homo plastic – quite a fate for an industry which is just a few decades old. This correspondent has interviewed many plastics trade groups and producers in the past 10 years and has heard the mantra about how useful for society plastics are several times: no matter how many times repeated, the mantra is not resonating with public opinion. On that aspect, Balcells is ahead of peers in the plastics lobby. It may be part of Asipla’s lobbying strategy, or it may be actual conviction, but her recognition the plastics sector has benefited from selling a cheap material with decent margins for decades while ignoring the end of the chain – waste – gives her a certain edge. “In fact, when I was appointed head of Asipla six years ago I was blunt and told company members: we need to change course in our strategy, or we’ll be overtaken by regulations and that will be worse of your own survival as companies. Rightly or not, plastics have become the visible enfant terrible in the sustainability debate, and we need to fight that with more than words saying how good plastics are,” she said. “Of course, there was fierce resistance to the changes at first. I implemented not only changes in terms of our marketing, but also by exploring new avenues in the plastics debate which prompted a deeper debate about sustainability, as well as the consequent and necessary investments in research and development to improve plastics’ sustainability.” Front page picture: A recycling plant, archive image Source: JC Tardivon/SIPA/Shutterstock Interview article by Jonathan Lopez

21-Jun-2024