Türkiye Struggles with Spiraling Inflation: Rate Hits 70% in AprilDespite the lower-than-expected increase, prospects for a rate cut remain distant as the Central Bank maintains a restrictive monetary policy by Marco Arezio At the economic heart of Turkey, the phenomenon of inflation is showing alarming signs, with a rate that reached 70% in April, marking one of the most severe inflation crises in recent years. This escalation in consumer prices is primarily driven by increased costs in the sectors of alcoholic beverages, tobacco, and hospitality, highlighting the complexity of the economic challenges the country faces. Although the figures were slightly below analysts' expectations, the response from the Turkish Central Bank suggests a cautious path, with indications to maintain a long-term restrictive monetary policy. Driving Factors of Inflation The significant increase in inflation can be attributed to several factors. First and foremost, the rising costs of essential goods and services such as alcoholic beverages and tobacco, which often see high tax imposition, contribute significantly to the consumer price index. Moreover, the hospitality sector, severely hit by the COVID-19 pandemic, has seen a price hike due to the resurgence of post-pandemic demand and increased operational costs. Market and Policy Reactions Despite inflation in April being lower than expected, it remains very high, prompting analysts to remain cautious about the future moves of the Central Bank of Turkey. The bank has already indicated last March that it will maintain a restrictive monetary policy, i.e., high interest rates, until there is a significant decrease in monthly inflation. This approach aims to stabilize the Turkish lira and control inflation, but it also affects the cost of debt and private investment. Future Outlook Economists predict that inflation might start to decrease in the second half of the year, however, they remain skeptical about a rapid decline in rates. Liam Peach, a senior emerging markets economist at Capital Economics, expresses reservations about the optimism of a rapid reduction in inflation, noting that global and internal economic conditions can make such a forecast difficult. Long-Term Implications The long-term prospects for the Turkish economy remain uncertain. Although a restrictive monetary policy can temporarily curb inflation, it may also stifle economic growth, making it difficult to fully recover from the economic impact of the pandemic. Moreover, the persistence of high inflation can erode consumers' purchasing power, negatively affecting domestic consumption and investment. Conclusions The inflation situation in Turkey remains complex and worrying. With a monetary policy expected to remain restrictive in the near future, the path to stabilization and sustainable growth seems still long and full of obstacles. Managing this situation will require a combination of careful policies and, possibly, structural reforms that can address the deep causes of high inflation and restore investor and consumer confidence.
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Trinseo and Tire Recycling Solution Create a New PartnershipCommercial agreement between Trinseo and Tire Recycling Solution to create new recipes for sustainable synthetic tyres Trinseo is a company that deals with the production of plastic materials, latex binders and synthetic rubbers which has 2700 employees and 17 production plants around the world, has announced, through a press release, an agreement with the Swiss company TRS for the formulation of recipes that help more sustainable tire producers. Trinseo, a global materials solutions provider and manufacturer of plastics, latex binders and synthetic rubber, has reached an agreement with Tire Recycling Solutions (TRS) regarding a business collaboration and equity investment in TRS. The deal is expected to close by the end of the quarter, subject to customary closing conditions. The new agreement will see the two companies collaborate on research and development, bringing together their combined technological expertise to help global tire manufacturers develop more sustainable tire formulations. Trinseo and TRS share the long-term goal of developing new systems to create greater value for tire production that reduce the environmental footprint and create a sustainable outlet for end-of-life tires. “This collaboration is extremely important for the development of true circular solutions for the tire and technical rubber industry. As a leading supplier of synthetic rubber to the tire industry, we are committed to helping our customers achieve their sustainability goals and believe that the most effective way to do this is through collaboration across the value chain. The partnership with TRS will provide us with high-quality recycled tire raw materials to serve customers globally,” said Francesca Reverberi, Vice President, Engineered Materials and Synthetic Rubber, Trinseo. Staffan Ahlgren, CEO of TRS, commented: “TRS has already worked closely with Trinseo for several years and we are excited to enter the next phase of our collaboration. TRS has developed technologies to treat end-of-life tires and provide output products with higher circular economic value. The partnership with Trinseo is confirmation of the great strides we have made since the company was founded seven years ago. " The investment is aligned and consistent with Trinseo's recently announced 2030 sustainability goals which outline the company's focus on addressing climate change, embedding sustainability into its product portfolio, promoting supplier management and taking responsibility as an employer. Launched in conjunction with the company's 10th anniversary, these long-term goals are now at the heart of the company at all levels. Category: news - plastic - circular economy - waste
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Growth of the Italian Plastic and Rubber Machinery IndustryPositive numbers in the plastics and rubber machinery sector. Let's see them in detailby Marco ArezioThe Italian industry of machinery for plastic and rubber processing recorded an extraordinary turnover of 4.8 billion euros in the previous period, thus setting a record. This success is largely due to a 10.8% increase in exports, bringing foreign sales to 3.59 billion euros. Despite the difficulties caused by the Covid pandemic and a challenging macroeconomic environment, the year saw a growth of 2.8% compared to 2022. However, the domestic market showed a contraction of 7.5%, with sales reaching 2.33 billion euros. Massimo Margaglione, President of Amaplast, expressed great satisfaction with these results, emphasizing the importance of the plastics and rubber machinery sector as a cornerstone of Made in Italy globally. This enthusiasm is also supported by the success of the Plast fair, confirming the solidity of this sector. As for future prospects, 2024 is shaping up to be more uncertain due to various factors, such as geopolitical tensions, rising interest rates, and general instability, which could negatively affect the sector's performance. After overcoming supply chain issues, a phase of adjustment is anticipated with possible short and medium-term difficulties. Taking a closer look at the different market segments, the past year saw double-digit growth in almost all categories of machinery, except for extruders, which nevertheless showed an increase of 7%. According to Amaplast, sectors such as injection presses and thermoformers have regained ground after a less promising start to the year. Exports, which account for two-thirds of production, have shown a positive trend in all geographical areas, with variations ranging from +6.1% in Europe to +20% in the Americas and +8.1% in Asia. Particularly noteworthy were the results in the Middle East and Africa, with increases of 50.3% and 36% respectively in North Africa and 31% in sub-Saharan destinations. Margaglione expressed concern about the slowdown already felt at the end of the year and the current unfavorable situation but remains optimistic about the future. Optimism is based on the ability of Italian small and medium-sized enterprises to innovate and overcome challenges, thanks to a strong entrepreneurial spirit and dynamic research and development. The positive reception of the Industry 5.0 plan, despite uncertainties regarding its implementation, highlights the need for timely support measures for the domestic market, according to the president of Amaplast. This scenario underscores the resilience and adaptability of Italian companies in the face of challenges, maintaining cautious optimism for the future. Source: Polimerica
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New Photovoltaic Systems on the Headquarters of Volvo Trucks ItaliaA collaboration agreement between Plenitude and Volvo will lead to the installation of solar systems Plenitude (Eni) and Volvo Trucks Italy have signed an agreement for the installation of 5 new photovoltaic systems that will help to supply with renewable energy, starting this year, as many Volvo Truck Center dealers in Northern Italy. The project will have a production capacity of 550,000 kWh per year and will allow Volvo Trucks Italia to improve the energy efficiency of their offices with a view to greater sustainability.The production of renewable energy will allow to avoid CO2 emissions of around 220 tons per year. The agreement provides, in addition to the installation, also the management and maintenance of the systems for the first 5 years and the development of a continuous monitoring system of performance. The systems will be installed at the Volvo Truck Centers in the cities of Bergamo (Headquarters), Venice, Brescia, Turin and Padua. Pasquale Cuzzola, Retail Italian Market Director of Plenitude, said: “This partnership is in line with the strategy of Plenitude to create value through the energy transition and to have net zero CO2 emissions by 2040 across the entire value chain, including those of our customers. We are therefore pleased to make our renewable solutions and technologically advanced systems available to the Volvo Trucks Italia offices, which will allow for a more efficient and sustainable use of energy and also to reduce the related costs”. Giovanni Dattoli, Managing Director of Volvo Trucks Italia, commented: “Volvo Trucks is fully investing in sustainability and this project in Italy it fits fully into our decarbonisation strategy, which concerns not only the vehicles we market but also the locations in which we operate. We are delighted with the agreement with Plenitude, an excellent partner who will accompany us on a virtuous path, allowing us to make a concrete and sustainable contribution to the environment". Automatic translation. We apologize for any inaccuracies. Original article in Italian. Eni Info
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China's PV Crisis: Overproduction and Global ImpactsAn excess of solar panels has caused a price collapse and market saturation, putting producers and countries around the world in difficultyby Marco ArezioIn recent years, the photovoltaic sector in China has experienced exponential growth, leading to an oversupply of solar panels.This overproduction has generated a global surplus, causing solar panel prices to fall internationally.While the expansion of renewable energy production capacity is a positive step toward the energy transition, the market is now in a difficult situation, with the United States and the European Union asking Beijing to limit its production capacity.Overproduction and Domestic Energy SurplusChina has installed such a large number of solar panels that it has created an energy surplus that the country is unable to store.In response to this situation, Chinese authorities have started withdrawing some subsidies for the sector, attempting to slow the pace of new installations.However, in the first quarter of 2024, solar panel installations in the Beijing region grew by 33% compared to the previous year, following a boom of 154% in the same period in 2023. This uncontrolled growth is the result of accelerated industrial expansion in recent years.Impact on Producers and the Global MarketChinese producers are also feeling the effects of overcapacity. Longi Green Energy Technology, the world’s largest solar cell manufacturer, has announced the layoff of thousands of workers due to price drops and oversupply.This surplus has led to an influx of solar panels into markets outside Asia, triggering a global domino effect that has halved solar module prices in Europe within six months.China dominates the global solar panel market, with production costs significantly lower than those in the United States and Europe. Chinese producers manufacture solar panels at costs ranging between 16 and 18.9 cents per watt of generating capacity, compared to 28 cents for U.S. companies and 24-30 cents for European firms.The Situation in GermanyGermany is also facing a similar phenomenon. In 2023, the country installed a record capacity of 14,280 MW of solar energy, almost double the amount installed in 2022.Total installed solar capacity reached 81.7 GW, far exceeding the country’s average energy demand of 52.2 GW.This excess capacity has led to a reduction in energy prices, with values in some cases turning negative. Germany’s electricity grid, like China’s, is struggling to handle the excess solar energy, raising the possibility that producers may no longer be able to sell surplus energy, limiting themselves to self-consumption.Political and Strategic ResponsesIn the United States, President Joe Biden has announced an increase in tariffs on bifacial photovoltaic panels, which until now were not subject to safeguard tariffs under Section 201 of the Trade Act of 1974.The new tariff on solar cells (whether assembled in modules or not) will rise from 25% to 50% in 2024, but the impact of these measures may be limited.In Europe, two investigations are underway into Chinese solar panel manufacturers suspected of receiving illegal state subsidies. Several countries, including Italy, are launching new solar panel production, but there is a risk that Europe could replace its dependence on Russian gas with a new dependence on Chinese green technology.Future ProspectsThe best solution to address the current crisis seems to be focusing on quality and technological innovation.Investing in advanced technologies and improving the efficiency of solar panels could help mitigate the negative effects of overproduction and stabilize markets.In the long term, technological innovation could make a difference, ensuring a sustainable energy transition and balancing the supply and demand of renewable energy.ConclusionsThe explosion of the photovoltaic bubble in China represents a complex phenomenon with global implications. The overproduction of solar panels has created a surplus that has driven down prices and put producers under pressure.While the push toward renewable energy is positive, a more balanced approach is needed to avoid overproduction crises.Countries must collaborate to find solutions that ensure a sustainable energy transition, while reducing dependence on individual suppliers and promoting innovation in the renewable energy sector.© All Rights Reserved
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Magnetti Building presents its first Sustainability ReportRecycling Concrete, Renewable Energy, and Corporate Welfare at the Heart of Initiatives for a Sustainable Futureby Arezio MarcoMagnetti Building, part of the Grigolin Group and specialized in prefabrication and the provision of low environmental impact solutions, has recently published its first Sustainability Report.This document is a commitment to transparency and demonstrates the company's dedication to a responsible approach, marking the beginning of a journey aimed at achieving ambitious goals in the short, medium, and long term. The main areas of intervention concern employee well-being, the environment, and social impact on the territory.Recycling Concrete and Closed-Loop Factory ModelMagnetti Building stands out for its adoption of a "closed-loop factory" model, which allows the reuse of concrete waste within the production process. This approach not only reduces waste but also optimizes the use of available resources.The company has implemented an advanced recycling plant that allows the reuse of waste concrete for new productions, significantly contributing to environmental sustainability. Additionally, Magnetti Building has obtained eight EPD (Environmental Product Declaration) certifications, which attest to the environmental sustainability of its products, covering 80% of the company's production.Renewable Energy and Reduction of Energy ConsumptionTo reduce environmental impact, Magnetti Building has undertaken significant initiatives in the field of renewable energy. Recently, work began on the installation of a new 500 kWp photovoltaic system.This system, once operational, will be added to the existing one, further reducing energy costs and improving the overall energy efficiency of the company. The goal is a significant reduction in energy consumption, with a 41% decrease over two years, thus contributing to a more sustainable future.Corporate Welfare: Stability and Well-being for EmployeesThe company places a strong emphasis on the well-being of its employees. All 167 Magnetti Building workers are on permanent contracts, ensuring job security and motivation. This approach aims to reduce turnover and build a solid corporate culture.Furthermore, a free canteen service has been introduced for all employees, and 100 thousand euros have been allocated to finance additional tailored training, based on individual skills and growth objectives.Magnetti Building has initiated a series of renovations of the company spaces to create a modern and comfortable work environment. The renovations include the creation of a garden for employees, an exhibition space for clients, a renovated canteen to encourage socializing, a multifunctional space for events and meetings, and the refurbishment of entrances.These interventions aim to improve the well-being and productivity of employees, providing them with a pleasant and functional work environment.Social Impact on the TerritoryMagnetti Building maintains a strong connection with the territory, collaborating with various local entities. The company continues its partnership with the Bergamo prison, supporting tailoring and pastry workshops and offering job opportunities to inmates.Additionally, a new collaboration has been launched with the Aiuto Donna association, which supports women victims of violence, promoting training and awareness on these issues within the company.A significant collaboration has been activated with Dynamo Camp, an organization that offers "Dynamo Recreational Therapy" programs to children and adolescents with serious or chronic illnesses and their families.Magnetti Building employees will be able to attend training courses to become volunteers, with the hours dedicated to this activity being paid as regular work hours. The company will also provide Dynamo Camp with its expertise for the refurbishment of the spaces used for activities.
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Manteco awarded for excellence in textile recycling: a model of sustainability “Made in Italy”The Italian Company Manteco Wins the Climate Project of the Year at the Climate and Nature Impact Awards by Textile Exchangeby Marco ArezioManteco, one of the leading Italian companies in the high-quality textile sector, recently received a prestigious international award for its commitment to sustainability.The company won the title of Climate Project of the Year during the Climate and Nature Impact Awards organized by Textile Exchange, a global platform that promotes responsible and sustainable practices in the textile and fashion industry.This award, received for its dedication to recycling, marks an important milestone in the company's journey towards a more environmentally-friendly textile industry.Who is Manteco?Founded in Italy in the 1950s, Manteco has built a solid reputation for producing high-quality fabrics, known for their innovation, refined aesthetics, and attention to detail.With headquarters in Tuscany, Manteco is synonymous with “Made in Italy” quality, capable of combining tradition and innovation at every stage of the production chain.The company specializes in wool processing and the creation of sustainable fabrics, which are often used by major international fashion brands.One of Manteco’s strengths is its ability to integrate sustainable practices within its production processes without compromising the final product's quality.Over the years, the company has developed cutting-edge technologies that allow it to recover and reuse materials otherwise destined for disposal, aiming to reduce environmental impact.Commitment to RecyclingManteco’s commitment to sustainability goes beyond words: the company has implemented an innovative recycling system, known as the Manteco Recycling System, which is based on the recovery of wool and other textile materials to create new high-quality products.This system not only reduces the amount of waste generated but also conserves natural resources and energy.Specifically, the Manteco Recycling System is based on a process that recovers and regenerates textile materials through innovative methods of selection, cleaning, and processing.One of the distinctive features of this system is the ability to create recycled fabrics that maintain the same quality and durability as those produced with virgin materials, making recycling not only sustainable but also commercially viable.Why Manteco Won the AwardThe Climate Project of the Year award from Textile Exchange recognizes Manteco’s ability to implement practices that significantly reduce environmental impact.This award is given to projects that demonstrate a tangible contribution to reducing carbon emissions and preserving biodiversity.Manteco stood out for the effectiveness of its circular approach to managing textile resources, focusing on a production model that promotes reuse and reduces waste.The company has shown how innovation in recycling can become a competitive advantage, helping to raise awareness across the textile sector towards greater environmental responsibility.The award, therefore, is not only a recognition of the Italian company but also an invitation to all industry players to follow Manteco’s example.The Impact of the Award and Future ProspectsReceiving such a prestigious award further confirms the value of Manteco's choices in terms of sustainability and innovation.This recognition strengthens the company’s position as a leader in textile recycling and could serve as an incentive for other companies to adopt similar practices.The international visibility gained from the award will also open up new collaboration opportunities for Manteco, allowing it to expand its global impact and continue innovating in sustainable fabrics.At a time when the textile industry is under increasing pressure to reduce emissions and resource consumption, the model proposed by Manteco represents a concrete and replicable response.Looking to the future, the company has already announced new projects and initiatives aimed at further improving its environmental performance, such as adopting low-carbon technologies and expanding its recycling practices.© Reproduction ForbiddenManteco Photo
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Snetor acquires 100% of Gazechim FranceThe communication signed by the CEO of the Snetor group. Emmanuel Aubourg, who makes the market aware of the double acquisition of companies operating in the field of polymers in Europe We are pleased to confirm, as a preferred partner, the Snetor Group's acquisition of Gazechim Plastics on July 27, 2020. This operation comes just a week after the acquisition of 70% of Tecnopol Spa in Italy and Spain by the Snetor Group. Shared values and a common vision The Snetor Group and Gazechim Plastics are two family-run companies with the same corporate culture and shared values where the human dimension and relationships based on trust are at the heart of decisions and organizations. Strongly linked to the close ties with our partners, we also share the same ambitions: to create value for our customers and suppliers and to become a key player in the distribution of plastics in Europe. From this operation a group was born which will today represent a perimeter of companies employing almost 300 employees for a consolidated turnover of 1.2 billion euros, present in Europe, Africa, the United States and Latin America. To date, Gazechim Plastics operates on the European continent through 7 subsidiaries covering the following areas: France, Italy, United Kingdom, Benelux, Iberica, Romania and Norden. A key player in Europe With these 2 operations, Snetor becomes a pan-European player able to offer a global solution to all its partners through different distribution channels depending on the country and to pursue its strategy of proximity and commitment towards its customers and suppliers wherever they are they find. Proud and attentive to the long-lasting relationships we have with you, our teams will continue to collaborate with you on our clients' projects, with the same professionalism and level of rigor and quality of service.
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Italian Polyamide Celebrates 25 years in BrazilThe internationalization of Italian polyamide production celebrates 25 years in South America this year The occasion is the Plasticos Brasil fair, which takes place in San Paolo in Brazil, to take stock of the objectives achieved by the Italian group active in the production of polyamides.From the Brazilian factory we not only look at the national area, but it is a springboard for services and products, useful for all situations in South America, with the aim of being close to customers in the plastics sector. A very large market that of polyamide compounds, which intercepts many mature and developed markets, different from each other, creating a sector mix very important to the company. At Plasticos Brasil, in fact, the group confirms the strategic importance of the Brazilian production site, a reference point for all of South America «It is today a consolidated presence and strategic that of RadiciGroup in South America – proudly says Jane Campos, South America Country Manager of RadiciGroup High Performance Polymers – The first establishment of the group dates back to 1998, with a proprietary production site in Brazil, near São Paulo, which has grown in these 25 years in terms of competence, know-how and production capacity".RadiciGroup participates in Plasticos Brasil (stand K038) - local reference fair for the polymeric materials sector which takes place from 27 to 31 March in Sao Paulo - thus confirming the strategic importance of the Brazilian and South American markets for its production and marketing of technopolymers for engineering use.«Over the years – continues Jane Campos – the Radici family has continued to invest in our country, strongly believing in its development prospects in the automotive, electrical/electronic, consumer and industrial.From "outsider" we have become a reference supplier in these sectors, with numerous customers who have recognized the high quality of our products and the reliability of our service. This was possible thanks to a strong ownership commitment and the support of the central structure of High Performance Polymers, as well as a gradual and significant investment plan to guarantee growth, sustainability and innovation in the business".Activity in Brazil and South America is highly strategic for the High Performance Polymers Business Area - said Maurizio Radici, Vice President and COO of RadiciGroup - and can count on a global structure distinguished by a network of production and commercial units in Europe, North and South America and Asia, which allows us to satisfy global and local customers with a complete, innovative and sustainable offer.That's why here too we have gradually decided to strengthen our presence through new and modern production lines, increasing production capacity and therefore our level of efficiency".Automatic translation. We apologize for any inaccuracies. Original article in Italian.Source: Roots Group
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Fabriano: the end of an era, the historic F3 paper production machine closedDecommissioned After Almost 50 Years: The F3 Continuous Machine of the Fedrigoni Group. 174 Employees in Extraordinary Unemployment Benefitsby Marco ArezioThe town of Fabriano experienced a historic and painful moment with the definitive shutdown of the F3 continuous machine, the beating heart of the Fedrigoni Group's Vetralla plant. This machine, active since 1976, represented for nearly half a century a symbol of Italian excellence in office paper production, especially the renowned Fabriano Copy 2. At 8:07 a.m. yesterday, its halt marked the end of an era.An Emotional FarewellValerio Monti, an employee and Uilcom union representative, described a deeply emotional moment: "Many of us were in tears. It was a difficult farewell." The decommissioning of the F3 machine is part of a broader corporate restructuring plan by the Fedrigoni Group, which has decided to shut down the activities of Giano Srl, the company responsible for office paper production. This decision will directly impact 174 employees across the Fabriano and Vetralla plants, who are now in extraordinary unemployment benefits for one year.Relocation ProspectsTo mitigate the effects of the shutdown, the company has implemented a relocation plan. The opportunities offered include:31 positions in Fabriano's internal services.48 positions in the security sector.10 positions in the Fabriano Colors department at the Rocchetta site.16 positions in other plants within the Marche region.Additionally, thanks to early retirements planned for 2025, the company estimates the availability of about 55 positions in its northern Italy plants, located in Trentino, Friuli, and Veneto. To facilitate this transition, economic incentives and benefits are offered for the first two years.A training and requalification program, supported by regional funding, will help workers prepare for new roles, aiming to alleviate the uncertainty of the future.The End of a SymbolThe F3 continuous machine was a source of pride for Fabriano, representing the heart of its industrial identity. Never ceasing operation in nearly 50 years, it embodied excellence and innovation in the paper industry. With its shutdown, the production of the famous Fabriano Copy 2 photocopy paper also comes to an end, a product that had cemented the brand's international reputation."Fabriano no longer produces photocopy paper," Monti stated, underscoring the profound significance of this loss for the local community. The closure of the F3 is not just an industrial event: it is a blow to the heart of a town that has made paper its identity.A Future to ReinventAs workers face an uncertain future, the entire Fabriano community questions how to reinvent itself. The shutdown of the F3 does not erase the wealth of skills and expertise accumulated over time, but it demands reflection on how to preserve Fabriano’s legacy as a symbol of Italian excellence in the paper industry.© All Rights Reserved
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Scotland's Largest Offshore Wind Farm is On4.3 billion dollars to generate up to 1075 MW of offshore wind power with a unique feature in the world. The world is chasing and solving the gaps that years of political inertia have brought in the field of renewable energy. It was convenient to buy oil, coal or gas to produce electricity but, today, for the issues we all know, this laxity has become a boomerang. To remedy past flaws, rivers of money and fast and effective political solutions are needed as the design, financing and installation of wind or solar farms of large dimensions requires great will and determination in achieving the objectives. In Scotland the Seagreen wind farm is nearing completion, located 27 km from the coast of Angus which, in 2023, will be able to deliver a power of 1075 MW relying on 114 turbines. The peculiarity of this wind farm with a fixed bottom is that the deepest in the world, since its bases are positioned 59 meters below the level of the water. The structure costing 4.3 billion dollars is the result of the collaboration between TotalEnergy and SSE Renewables, in fact, TotalEnergies has entered into an agreement with SSE Renewables to acquire a 51% stake in the Seagreen project in June 2020. "We are delighted to announce the start of power generation from Seagreen, our first offshore wind phase in the UK's North Sea," said Vincent Stoquart, TotalEnergies Senior Vice President Renewables. “This marks a new step in developing the capacity of TotalEnergies' offshore operations. This milestone will directly contribute to our goal of reaching 35 GW of renewable electricity capacity worldwide by 2025”. Automatic translation. We apologize for any inaccuracies. Original article in Italian. Info: TotalEnergy
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The raw materials crisis and the return of recyclingGeopolitical Dependence on Oil and Critical Resources: Why the Circular Economy Is Becoming an Industrial StrategyAuthor: Marco ArezioDate: 2026From oil dependency to global geopolitical tensions: how wars, energy instability, and resource scarcity are transforming recycling into a decisive economic and industrial strategy.IntroductionFor more than a century, the global industrial economy developed according to a relatively simple model: extracting natural resources, transforming them into products, and finally disposing of them as waste. This linear system worked for a long time because raw materials were perceived as abundant and because the energy needed to extract and process them, particularly oil, was available at relatively low cost.Over the last few decades, this perception has slowly begun to change. Global economic growth, population increase, and the expansion of emerging economies have multiplied demand for energy and industrial raw materials. At the same time, the production of many of these resources has remained concentrated in areas of the planet marked by political instability, regional conflicts, or geopolitical tensions.This combination of factors has made a structural fragility of industrialized economies increasingly clear: dependence on energy sources and materials coming from regions of the world that are difficult to control or predict. Oil is the most obvious example of this vulnerability, but it is not the only one. Today, many fundamental raw materials for modern industry—from metals to rare earths—are concentrated in a small number of countries and subject to complex geopolitical dynamics.In this scenario, recycling and the circular economy are taking on a new meaning. They are no longer only environmental tools aimed at reducing the impact of waste on the planet, but are progressively becoming a strategic component of the economic and industrial security of nations.Global Dependence on Oil and the Vulnerability of Industrial EconomiesFor more than a century, oil has represented the backbone of modern economic development. Not only as a fuel for transport or for energy production, but also as a fundamental raw material for the chemical industry, for the production of plastics, fertilizers, solvents, and thousands of other products used in everyday life.This central role, however, has created a structural problem. The main oil reserves on the planet are not evenly distributed, but are concentrated in a few specific areas, particularly in the Middle East, in some regions of Africa, and in parts of Central Asia. Many of these territories are characterized by fragile political balances, regional tensions, or geopolitical rivalries that make global energy supply vulnerable to sudden crises.When conflicts or military tensions occur in these regions, the impact on energy markets can be immediate. Disruptions in production, attacks on oil infrastructure, or threats to strategic maritime routes can cause rapid increases in energy prices, with chain effects on the global economy.This vulnerability has become even more evident in recent years, as geopolitical tensions have demonstrated how much the global energy system depends on a delicate balance between production, transport, and political stability.Energy Wars and the Instability of Raw Material MarketsContemporary geopolitical crises are not only about control of territories or regional political balances. More and more often, behind conflicts and international tensions there is an economic dimension linked to access to natural resources.Control over energy sources and industrial raw materials has become one of the most important factors in defining the balance of power among nations. When these resources are threatened by wars, economic sanctions, or trade blockades, the effect is immediately reflected in global markets.Oil and raw material prices can fluctuate rapidly in response to geopolitical events, creating economic instability and difficulties for industries that depend on these resources. Rising energy costs often translate into inflation, slower economic growth, and loss of competitiveness for many companies.In this context, resource security is becoming a central issue for the economic policies of industrialized countries.The Strait of Hormuz Crisis and the New Raw Materials ShockOne element that makes the fragility of the current global economic system even more evident is the energy crisis that broke out after the joint attack by the United States and Israel against strategic Iranian targets. Tehran’s military response quickly transformed the regional conflict into an event with global economic consequences, especially with regard to energy supply.The most critical point of the crisis is represented by the Strait of Hormuz, one of the most important maritime passages on the planet for energy trade. This narrow corridor of sea separating Iran from Oman is only a few dozen kilometers wide, yet an enormous share of the world’s energy passes through it. Every day, around 17–20 million barrels of oil transit through these waters, equal to about 20% of global consumption, in addition to a significant share of worldwide liquefied natural gas exports, especially from Qatar.When the conflict with Iran intensified and Tehran threatened to prevent the passage of oil tankers, maritime traffic in the area slowed dramatically. Several shipping companies suspended routes through the strait, and numerous tankers remained stationary while waiting for safer conditions. Within a few days, tanker traffic collapsed and passage through the world’s most important energy corridor nearly disappeared.The consequences for raw material markets were immediate. The price of Brent crude oil, which before the crisis fluctuated around seventy to eighty dollars per barrel, quickly exceeded the threshold of one hundred dollars and in some phases of tension continued to rise, fueling fears of a new global energy crisis.The blockage of the strait also caused an energy supply shock without precedent in the recent history of the oil market. According to estimates by the International Energy Agency, the reduction in exports from the region could exceed several million barrels per day, making this disruption one of the most serious ever recorded for the global energy market.In response to the crisis, industrialized countries began releasing oil from their strategic reserves in order to stabilize markets and contain rising prices. However, these reserves represent only a temporary solution and cannot replace supplies from the Persian Gulf for long.The economic consequences of this situation are spreading rapidly throughout the entire global industrial system. Rising energy prices affect production costs, transport, agriculture, and numerous manufacturing sectors. The economies most affected are those that depend most heavily on energy imports, in particular many European and Asian countries.But the Strait of Hormuz crisis highlights an even deeper problem: the fragility of the global industrial system in the face of geopolitical tensions. When a single area of the planet can block such a large share of global energy supplies, it means that the entire economic system depends on an extremely delicate balance.For this reason, the Iranian crisis does not represent only a geopolitical event, but also a sign of the transformation underway in the global economy. Resource security is becoming a central issue for industrial strategies and for the economic policies of nations.In this context, recycling and the circular economy take on an even more strategic value. Reducing dependence on raw materials extracted in geopolitically unstable regions means increasing the resilience of economies and building production systems that are less vulnerable to energy shocks and international crises.The recovery of materials already present in industrial economies—metals, plastics, electronic components—can help reduce pressure on global supply chains. Cities and production systems accumulate large quantities of resources over time that, if recovered and reintroduced into production cycles, can reduce the need for new extraction and limit dependence on vulnerable trade routes.In other words, the Strait of Hormuz crisis clearly demonstrates that recycling is not only an environmental policy, but also an economic security strategy. In a world characterized by geopolitical tensions and competition for resources, the ability to recover materials within one’s own economy becomes one of the key factors of industrial resilience.Why Middle Eastern Oil Remains Central Even in the Era of the Energy TransitionIn recent years, public debate on energy has been dominated by the theme of the energy transition. The spread of renewable energy, the development of electric vehicles, and climate policies are progressively reducing the role of fossil fuels in the long-term strategies of industrialized economies. However, this transformation, though significant, is not taking place as quickly as is often imagined in political discourse.Oil still occupies a central position in the global economy. Even in countries that are investing heavily in renewable energy, much of transport systems, logistics, and the chemical industry still depend to a large extent on petroleum derivatives. It should not be forgotten that oil is not only a fuel: it is also the basis of numerous industrial supply chains, from the production of plastics to fertilizers, from solvents to synthetic materials used in a great many productive sectors.The energy transition also requires long timeframes. Replacing global energy infrastructures—refineries, distribution networks, transport systems, and industrial plants—requires enormous investments and decades of technological transformation. Even in the most advanced countries from the point of view of decarbonization, the share of energy coming from fossil sources remains significant.In this context, the Middle East continues to represent one of the nerve centers of the global energy economy. The region hosts some of the largest oil reserves on the planet and remains one of the main energy export hubs toward Europe, Asia, and other industrialized economies.This reality creates a paradoxical situation. On the one hand, climate policies aim to progressively reduce the use of fossil fuels. On the other hand, in the short and medium term, global economies continue to depend substantially on oil coming precisely from those regions that are geopolitically the most unstable.Tensions in the Persian Gulf show how delicate this balance is. Military events, diplomatic crises, or threats to maritime routes can have immediate effects on international energy markets. When the flow of oil from the Middle East is called into question, the impact concerns not only fuel prices, but the entire global economic system.This situation highlights another aspect that is often overlooked in the contemporary energy debate. The ecological transition is not only about the development of new energy technologies, but also implies a profound transformation in the way economies use material resources.Reducing dependence on oil does not simply mean producing more renewable energy. It also means using materials more efficiently, extending the life of products, and recovering resources already present in the economic system.In this sense, the circular economy represents one of the most important tools for supporting the energy transition. Recovering materials through recycling means reducing the need for new extraction and lowering pressure on global supply chains.Recycling therefore becomes an integral part of the energy and industrial strategy of the future. It does not directly replace oil as an energy source, but it helps reduce overall dependence on resources extracted in geopolitically unstable regions.Europe’s Energy Fragility and Dependence on ImportsAmong the world’s major economies, Europe represents one of the clearest examples of energy dependence. The continent has limited natural resources compared to its industrial needs and must import a large share of the energy and raw materials it uses.This dependence makes the European economy particularly sensitive to geopolitical crises and changes in energy markets. When the price of oil or gas rises suddenly, the impact quickly spreads through the entire economic system, affecting production costs, the prices of goods, and citizens’ purchasing power.In recent periods, international tensions have shown how much this situation can represent a strategic vulnerability. Reducing dependence on imports of energy and raw materials has therefore become an increasingly important objective for European industrial policies.Critical Raw Materials and the New Geopolitical Competition for ResourcesIf in the past oil represented the main strategic resource, today the landscape of raw materials has broadened significantly. Modern technologies—from electric vehicles to electronic devices, from renewable energy to digital infrastructure—require a growing quantity of metals and specialized materials.Elements such as lithium, cobalt, nickel, copper, and rare earths have become indispensable for contemporary technological development. However, these resources too are often concentrated in a small number of producing countries, creating new forms of economic and geopolitical dependence.The growing global demand for these materials is fueling increasingly intense international competition, in which access to resources becomes a determining factor for the industrial and technological development of nations.The Strategic Return of Recycling in Industrial PoliciesIn this context of growing competition for natural resources, recycling is returning to the center of economic and industrial strategies. Recovering materials from waste does not only mean reducing the environmental impact of industrial production, but also reducing dependence on imports of raw materials.Advanced economies are beginning to consider the materials contained in waste as a true reserve of resources. Cities and production systems accumulate large quantities of metals, plastics, and other materials over time that can be recovered and reintroduced into production cycles.This process progressively transforms waste into a sort of urban mine, capable of supplying secondary raw materials without the continuous need to extract new natural resources.Circular Economy and the Resilience of Supply ChainsGlobal supply chains have become increasingly complex and interconnected. Modern industries depend on networks of suppliers distributed across the world, and any disruption in one part of the chain can have cascading effects on the entire production system.The circular economy offers a possible response to this vulnerability. Recovering materials within national or regional economies makes it possible to reduce dependence on supplies coming from distant and politically unstable countries.In this way, recycling contributes not only to environmental sustainability, but also to economic resilience.The Role of Recycled Materials in Technological IndustriesMany industrial sectors are already integrating recycled materials into their production chains. The metallurgical industry increasingly uses scrap to produce steel and aluminum, while the battery sector is developing technologies to recover valuable metals from end-of-life devices.The plastics industry is also evolving rapidly, with the development of high-quality recycled polymers capable of replacing virgin materials in numerous industrial applications.These transformations show how recycling can become a structural element of modern industry.Industrial Strategies to Reduce Dependence on External ResourcesTo address the challenges related to resource security, many governments are developing new industrial strategies based on more efficient material management.These strategies include the promotion of recycling, the development of technologies for material recovery, and the creation of more local and resilient production chains.The objective is to build an economic system that is less vulnerable to geopolitical crises and better able to manage available resources sustainably.The New Economic Paradigm of Circular ResourcesThe raw materials crisis and geopolitical tensions are accelerating a profound transformation of the global economic system. The linear model based on extraction, production, and disposal is progressively giving way to a more complex paradigm in which resources are used for longer, recovered, and reintroduced into production cycles.In this new scenario, the circular economy does not represent only a response to environmental challenges, but also a tool for strengthening the economic security of nations.Recycling thus becomes one of the pillars of a more resilient industrial system, capable of reducing dependence on geopolitically unstable resources and of building a more sustainable economic future.SourcesInternational Energy Agency – Global Energy OutlookEuropean Commission – Critical Raw Materials StrategyOECD – Global Raw Materials OutlookEuropean Parliament – Critical Raw Materials for the EUBruegel – European Fossil Fuel DependenceTransport & Environment – EU Oil Dependency ReportEconomics Observatory – Energy conflicts and inflationJournal of Cleaner Production – Circular Economy and Resource Security
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Agreement between TotalEnergies and Honeywell to Recycle PlasticAgreement between TotalEnergies and Honeywell to Recycle Plastic The recycling of plastic waste through a process of ennobling the performance of future polymers , with the aim of bringing the new raw material closer to the virgin one, is the objective of the new industrial projects on plastic recycling. Among these new projects, TotalEnergies and Honeywell announced a strategic agreement to advance the development of advanced plastic recycling. Under this agreement, Honeywell will agree to supply Recycled Polymer Feedstock (RPF) to TotalEnergies, using Honeywell's UpCycle process technology at Honeywell and Sacyr's new recycling facility to be built in Andalusia, Spain. TotalEnergies will purchase and convert this feedstock into high-quality polymers, which could be used for food packaging and other highly demanding applications. The UpCycle plant, which will be owned by a joint venture between Honeywell and Sacyr, is expected to process and convert 30,000 tonnes of mixed plastic waste into RFP each year, which could otherwise go to landfill or incineration. The UpCycle plant is scheduled to start up in 2023, with RPF to be used for the production of high-quality polymers in TotalEnergies' European production units. As stated in Total's press release, the new raw material will have properties identical to virgin polymers and suitable for a wide range of applications, including food-grade applications, such as flexible and rigid containers. This first project represents the beginning of the collaboration between TotalEnergies and Honeywell in the field of advanced recycling. Both parties are committed to tackling the issue of plastic waste and helping build a more circular and sustainable economy in Europe and the rest of the world. “We are pleased to partner with Honeywell to address the problem of plastic waste through the development of advanced recycling and, thus, create a circular economy, one of the pillars of sustainable development. This project, with a startup targeting 2023, will help meet our ambition to produce 30% recycled and renewable polymers by 2030,” said Valérie Goff, Senior Vice President, Polymers at TotalEnergies. “Demand for plastics will continue to grow, so it is critical to create a link between waste management and plastic production to strengthen a circular flow of plastics,” said Ben Owens, vice president and general manager of Honeywell Sustainable Technology Solutions. “The agreement with TotalEnergies will provide a strong partnership for the uptake of recycled polymer feedstocks and, together with our recently communicated advanced recycling facility with Sacyr, Honeywell is leading the push towards a more circular plastics economy.” Category: news - plastic - circular economy - recycling - waste
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Strait of Hormuz Closed: The Consequences of the Iran War on Virgin and Recycled PlasticsThe closure of the Strait of Hormuz caused by the conflict in Iran is shaking up the global plastics supply chainby Marco Arezio · Market Analysis | 25 March 20261. Geopolitical Context: the Iran War and the Closure of Hormuz On 28 February 2026, Israel, in coordination with the United States, launched a pre-emptive military operation against Iranian targets linked to its nuclear and ballistic programmes. Iran responded with missiles and drones against Israel, Saudi Arabia and US bases in the region, simultaneously declaring the closure of the Strait of Hormuz — the 34-km maritime corridor between the Iranian coast and the Musandam Peninsula (Oman) that connects the Persian Gulf to the Gulf of Oman. According to data from the U.S. Energy Information Administration (EIA), in 2024 approximately 20 million barrels of crude oil per day and around 400 million m³ of LNG transited that strait every day. By 9 March 2026, the number of ships in transit had fallen from 129 (the February average) to just 4 per day: a 97% reduction in maritime traffic. For the first time in modern history, Tehran achieved this not through mines or conventional naval blockades, but by physically targeting tankers attempting passage — as documented by the British agency UKMTO with the sinking of the Skylight — and by causing war-risk insurance premiums to quadruple. The major shipping operators (Maersk, Hapag-Lloyd) have suspended transits. 2. Why the Strait of Hormuz is the Heart of the Global Petrochemical Industry The Strait of Hormuz is not merely an oil corridor: it is the obligatory transit point for much of the entire global petrochemical supply chain. Around the Persian Gulf is concentrated the most competitive feedstock production base in the world, with integrated cracking facilities in Saudi Arabia (SABIC, ARLANXEO), the United Arab Emirates (Borouge), Kuwait, Qatar and Iran. According to an analysis by Laboratorio REF Ricerche (March 2026), 84% of polyethylene (PE) exports from GCC countries transit through the Strait. Similarly, according to ICIS data, approximately 80% of Asian sea-imported naphtha demand was covered by Middle Eastern supply in 2025. With the Hormuz blockade, all these flows have been interrupted or severely curtailed. Petrochemical Products at Risk The link between the Hormuz blockade and plastics prices is direct and structural. The value chain starts with hydrocarbons (crude oil and natural gas) and runs through these stages: • Naphtha (from crude oil refining) → feeds ethylene crackers • Ethylene + Propylene → base monomers for PE (polyethylene), PP (polypropylene), PVC, PET • Methanol → intermediate for resins, plasticisers, solvents • MEG (monoethylene glycol) → precursor of PET and polyester fibres • Butadiene → synthetic SBR rubber, elastomeric components Iran, in particular, was in 2025 the world's largest methanol exporter with over 9 million tonnes (source: ICIS Supply and Demand database). With Iranian plants idle and shipments blocked, scarcity immediately ripples through to spot markets for intermediates and commodity resins. Qatar suspended LNG production — and with it part of its aluminium and chemical output — after Iranian attacks near the North Field extraction sites, the world's largest natural gas deposit. Italy, as ISPI data remind us, depends on Qatar for over 11% of its gas consumption, three times the European average. 3. Impact on Virgin Plastics: Feedstocks, Resins and Prices 3.1 Commodity Polymer Price Increases — Data to 24 March 2026 The escalation has triggered the fastest wave of commodity polymer price increases in twenty years. Data updated to 24 March 2026 paint an extraordinarily severe picture across all geographical areas. In Europe, according to Platts/S&P Global data, PP homopolymer injection FD NWE reached €1,200/t on 13 March, an increase of €220/t from the start of the month. Polyethylene experienced increases of between €200 and €500/t depending on grade, with LDPE earning a rare premium over mLLDPE due to supply scarcity (source: ChemOrbis/Platts, Italy). European producers have halted quotations due to supply stoppage from the Gulf region. LyondellBasell announced cumulative increases of 35 cents/lb (over $770/t) for North American PE through May 2026. In the USA, HDPE rose by 36.57% in the first weeks of March. The polymer-grade propylene (PGP) spot price jumped to the 40–45 cents/lb range (from 32.5 in January), with PP contract increases of 4 cents/lb in February, 2 cents in March and 4 cents nominated for April (sources: Argus Media, Plastics Technology, RTi). The picture in India is even more dramatic: Reliance Industries raised PE prices three times in eight days; Indian Oil followed with four rounds of its own. Overall, Indian polymers rose ~43% from 28 February (source: S&P Global), with spot highs of 100–150% on some grades. In Asia, PP injection CFR Far East grew by $330/t from 2 March. In Africa, PP raffia rose 39%. By 13 March 2026, ICIS had counted 31 force majeure declarations or sales allocations for chemical products in Asia and the Middle East, 2 in Europe and 1 in the Americas. Plastribution UK stated: the main problem is no longer the price but finding physical material. Naphtha — the main feedstock for Asian crackers — recorded the sharpest increase: from $619–621/t (CFR East Asia, on 28 February) to $1,077–1,079/t on 17 March (+74% in two weeks), according to PolymerUpdate. This forced numerous Asian crackers to cut operating rates: Northeast Asian crackers are expected to run at ~70% utilisation in March (vs 80% in February), South Korean ones at below 65%. 3.2 Supply Chain Disruption: Logistics and AvailabilityBeyond prices, the immediate problem is physical: tankers and bulk carriers are no longer transiting the Strait. Routes via the Cape of Good Hope add 10–15 days of sailing time and increase transport costs by 40–72%. This creates a dual difficulty for European converters: reduced availability of imported feedstock and uncertainty over delivery times, making any stable industrial planning impossible. The Italian production districts most exposed, according to the CGIA research office (March 2026), are: the plastics districts of Treviso, Vicenza and Padova; rubber and plastics articles in Varese; the Brindisi petrochemical hub; Sarroch petrochemical complex (Cagliari); Salerno chemical cluster. CGIA estimates an impact of approximately €10 billion in additional energy costs for Italian companies in 2026. 3.3 The Rerouting Option: Limits and Opportunities The alternatives to the Strait of Hormuz for hydrocarbon transit from the Gulf are limited. The Trans-Arabian Pipeline (TAPLINE), now decommissioned, and the Abqaiq–Yanbu pipeline in Saudi Arabia have a capacity of approximately 5 million bbl/day, enough to cover only a fraction of the usual volume. The Fujairah terminal (UAE), on the Gulf of Oman, can play a partial buffer role. For LNG, no equivalent-capacity alternative to Hormuz exists today. In the medium term, this crisis is accelerating investment in alternative routes, additional regasification capacity and strategic LNG storage. On the petrochemical side, a revival of North American (USA, Canada) and European shale-gas crackers is expected, with a structural rebalancing of supply chains. The EIA in its March 2026 Short-Term Energy Outlook projects Brent to remain above $95/bbl for the next two months, falling below $80/bbl in Q3 only if the conflict is resolved. Should the blockade persist, analysts at BIC Advisory Group estimate supply chain and price repercussions 'lasting months, with trade route adjustments that will take years'. 4. Impact on Recycled Plastics: A Sector Already in Structural Crisis The Iran conflict arrives at an already critical moment for the European plastic recycling sector. According to Laboratorio REF Ricerche (March 2026), in 2024 total volumes recycled in Europe fell for the first time, from 7.7 to 7.5 million tonnes, and sector turnover has declined for the second consecutive year — with the largest closure of recycling operating capacity ever recorded on the continent. 4.1 The Paradox of the Crisis: Is Recycled More Expensive than Virgin? Until the Hormuz crisis, the sector's main problem was that virgin polymers, produced in excess primarily by Asian and Middle Eastern plants, were cheaper than European recyclates. The conflict has reversed this dynamic sharply and, in some respects, paradoxically. On one hand, the rise in virgin feedstock costs (naphtha, ethylene, propylene) makes first-production polymers more expensive, theoretically increasing the competitiveness of recyclate. On the other hand, the energy costs of recycling plants have soared along with the gas price (from €32 to €55/MWh in a few days), making the regranulation, washing and mechanical sorting process significantly more costly. Recycling plastic or smelting aluminium are energy-intensive activities: with gas back above €45/MWh, the economic advantage of recyclate narrows. 4.2 The Logistical Blockade of Secondary Raw Materials (SRM) The second front directly affects European recycling export flows to Asia. Italy in 2024 had already reached its ten-year peak (2015–2024) for extra-EU exports of plastic SRM (103,352 tonnes, source: Laboratorio REF 2026). With the Hormuz crisis, maritime freight rates for the export of paper and plastic to Asia increased by 40% in three weeks, effectively blocking recycling trade routes. The consequence is that Italian operators are stockpiling tonnes of recycled material that can neither be disposed of nor sold: plants paralysed on one side by rising operating costs and on the other by the impossibility of exporting semi-finished products to their usual destination markets. Making matters worse, from May 2026 the European ban on exporting plastic waste to non-OECD countries will come into force — a measure already scheduled that, combined with the logistical blockade caused by the war, risks generating an unprecedented bottleneck in the management of post-consumer plastic flows. 4.3 Chemical Recycling: Between Opportunity and Vulnerability Chemical recycling — pyrolysis, gasification, depolymerisation — could theoretically benefit from the crisis, as it produces pyrolysis oil that substitutes fossil naphtha as feedstock for crackers. However, these plants are also energy-intensive and require high operating temperatures (400°C for pyrolysis, 700–800°C for gasification). With gas at €55/MWh, the operating margins of these technologies narrow considerably. The strategic considerations remain valid in the medium term: chemical recycling allows contaminated and mixed plastic fractions not mechanically recyclable to be valorised, reducing dependence on Gulf feedstocks. Investment in this direction is set to accelerate in the post-crisis phase. 5. Scenarios: Short, Medium and Long Term for the Plastics Supply Chain5.1 Short Term (1–3 months): Import-Driven Stagflation The most immediate scenario, as defined by I-Com, is one of 'import-driven stagflation': rapidly rising energy inflation, slowing industrial output and pressure on the balance of payments of importing countries. For the plastics supply chain this translates into: • Suspension or reduction of production by European converters with limited liquidity • Reallocation of purchases towards US, North African and North Sea suppliers — at higher prices • Shutdown of mechanical recycling plants running at a loss • Build-up of unsold SRM stockpiles at Italian and European logistics hubs 5.2 Medium Term (3–12 months): Acceleration of Structural Transitions Should the conflict persist or resolve with a new, unstable geopolitical equilibrium, an acceleration of some structural transitions already underway is plausible: • Revival of European and North American petrochemicals, with investment in shale ethane crackers • Diversification of supply routes towards West Africa, Norway and Alaska • Acceleration of chemical recycling and high-quality mechanical recycling for premium fractions (PET, HDPE, PP) • Consolidation of the European recyclate market through insolvencies and acquisitions in the recycling sector 5.3 Long Term: Structural Rethink of Gulf Dependency In the long term, the 2026 Hormuz crisis could prove the turning point for a redefinition of global petrochemical supply chains. Dependence on a single maritime corridor for a fifth of global energy needs — and for over 80% of Asian naphtha — has proven a systemic vulnerability impossible to ignore. An acceleration of investment in the circular economy, substituting imported virgin materials, and a profound revision of the procurement policies of major European converters is likely. 6. Institutional and Sector Responses On the European front, EuPC issued an urgent appeal to political leaders for the application of an energy price cap, already discussed at the EU Council on 19 March 2026. The IEA coordinated an initial emergency oil stock release equivalent to approximately one fifth of total reserves available among member countries, while noting that this measure cannot be considered a solution. For plastic recycling, the European Commission had already presented on 23 December 2025 a package of measures including: harmonised End of Waste (EoW) criteria for mechanically recycled plastics, mass-balance allocation rules for chemical recycling, relaunch of the Circular Plastics Alliance and establishment of separate customs codes for plastic SRM. The crisis has given new urgency to these measures. In Italy, Assorimap, Corepla and trade associations are negotiating with MASE and MIMIT extraordinary support measures for recycling plants, including partial coverage of additional energy costs. The adjustment to the CONAI contribution (expected to exceed €600/t from July 2026 for certain bands) has been described by several operators as a necessary but insufficient 'war tax'. 7. FAQ How much have PE and PP prices increased due to the closure of Hormuz? As of 24 March 2026 the data are as follows. In Europe, PP Homo Injection NWE reached €1,200/t (+€220/t from the start of March, source S&P Global Platts); PE has seen increases of between €200 and €500/t by grade. In the USA, HDPE rose 36.57% in early March; LyondellBasell announced cumulative increases of 35 cents/lb through May 2026. In India, spot prices on some grades have risen +100–150% from 28 February. In Africa, PP raffia rose 39%. For Q2 2026, analysts forecast prices to remain elevated with Brent above $95/bbl (source: EIA STEO March 2026). Why does plastic recycling suffer more when virgin plastic becomes more expensive? Recycling is an energy-intensive activity: washing, optical sorting, extrusion and regranulation processes require gas and electricity. With energy costs doubled, the competitive advantage of recyclate diminishes even as virgin material revalues. In addition, freight for export to Asia (+40%) is blocking the sale of SRM, creating an unsold stockpile that squeezes margins upstream in the value chain. Is Iran an important supplier of plastics to Europe? Yes, indirectly. Iran is the world's largest methanol producer (over 9 million tonnes in 2025), a key intermediate for resins, plasticisers and solvents. Iran also exported polyolefins and petrochemical products to Asia and the Middle East. The shutdown of Iranian production and additional sanctions tighten spot markets for intermediates, with knock-on effects on the prices of end resins. What is the alternative route for Gulf LNG and oil? The main alternative is the Cape of Good Hope (Africa), which adds 10–15 days of sailing time and increases transport costs by 40–72%. The Abqaiq–Yanbu pipeline (Saudi Arabia) can carry approximately 5 million bbl/day, a fraction of the usual volume. For LNG there are no routes of equivalent capacity today: this makes European countries dependent on Qatari supplies (such as Italy, at 11%) particularly vulnerable. What changes for companies buying certified recycled plastic in Europe? In the short term, companies purchasing certified recyclate (e.g. food-grade rPET, rHDPE, rPP for automotive) may find prices less volatile than imported virgin — but with lower physical availability due to the SRM export blockade. In the medium term, the crisis could incentivise the development of a shorter, more 'domestic' recyclate supply chain in Europe, reducing dependence on SRM imports from Asia. Are Italian plastics districts at risk of closure? The risk is real for smaller, less capitalised companies. The districts of Treviso/Vicenza/Padova, Varese (rubber and plastics), Brindisi and Sarroch (petrochemical) are among the most exposed. CGIA estimates that Italian companies will pay approximately €10 billion more in energy costs in 2026. EuPC has already called for emergency measures, and the issue will be central to upcoming EU Council sessions on industry. 8. Sources and References The information in this article is based on verified primary and institutional sources: • S&P Global Platts: 'Polypropylene prices rise globally following outbreak of Middle East war' (13 March 2026) — spglobal.com • S&P Global: 'War in the Middle East cools polymer trade in the Americas' (3 March 2026) — spglobal.com • PolymerUpdate.com: 'Polymer prices surge sharply amid supply disruptions as Middle East tensions escalate' (March 2026) — polymerupdate.com • Syntex America: 'Hormuz Crisis Week 3: 50% of Global PE Supply Disrupted, Prices Spike 50-80%' (20 March 2026) — syntexamerica.com • PlasticsToday / ICIS (Joseph Chang): 'Iran War Creates a Dire Strait for Resin Markets' (17 March 2026) — plasticstoday.com • Argus Media: 'Iran war to push up PE, PP prices: LyondellBasell' (19 March 2026) — argusmedia.com • Bloomberg: 'Iran War Ripples Are Driving Up Prices for Plastics Ingredient' (19 March 2026) — bloomberg.com • ChemAnalyst: 'Are Feedstock Shortages and War Risks Pushing Petrochemical Prices to New Highs?' (March 2026) — chemanalyst.com • Plastics News / ICIS: 'Impacts of Middle East conflict could reshape Europe recycled plastics market' (March 2026) — plasticsnews.com • Plastics Technology: 'March 2026: Prices Up for PE, PP, PS, PVC' (Feb/March 2026) — ptonline.com • Fortune / Yahoo Finance: Brent crude price tracker (24 March 2026) — fortune.com • Investing.com: Brent Oil Futures live data (24 March 2026) — investing.com • EIA Short-Term Energy Outlook (March 2026) — eia.gov • I-Com – Institute for Competitiveness: 'The closure of the Strait of Hormuz: a global energy shock' (20 March 2026) — i-com.it • ISPI – Institute for International Political Studies: 'From Iran to the world: 6 charts on the economic impact of war' (March 2026) — ispionline.it • CGIA Mestre: 'The Iran war sends the bill to businesses' (7 March 2026) — quotidiano.net • Laboratorio REF Ricerche: 'The plastics recycling crisis: proposals to overcome it' (March 2026) — laboratorioref.it 👤 Author Note This article is written by the rMIX Editorial Team, specialised in the analysis of virgin and recycled plastics markets, technical polymers and the circular economy applied to the plastics industry. rMIX – The Recycling Portal in the Plastics Industry is a specialist B2B business directory and marketplace with over 25 years of experience in the sector. Analyses are based on verifiable primary sources (EIA, ISPI, I-Com, ICIS, Coface, Laboratorio REF Ricerche) and real-time market intelligence. For information, business enquiries or further analysis: www.rmix.it | info@rmix.it Last updated: 25 March 2026
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rNEWS: Sabic and Plastic Energy Together for a New Chemical Recycling PlantSabic and Plastic Energy Together for a New Chemical Recycling Plant Attention to the environment, the circular economy and waste materializes in the analysis of solutions that can actually use waste waste, i.e. those products that leave mechanical recycling plants as waste and which would be destined for landfill or waste disposal. 'incineration. Chemical recycling is certainly a way to reuse these wastes by transforming them, as Sabic and Plastic Energy will do in the Netherlands, creating a value chain in sustainable polymers. In late 2018, Saudi petrochemical group Sabic signed a memorandum of understanding with British Plastic Energy to build a plastic recycling unit in the Netherlands. The project was expected to be completed in 2021. Although it is a little late, work is underway towards its realization. The two partners have just created a joint venture, Spear (Sabic Plastic Energy Advanced Recycling BV), of which they own equally, to start construction of this site in Geleen, a major petrochemical centre, near Maastricht, where Sabic is already present. It is expected to be operational in the second half of 2022. with the support of the Dutch Ministry of Economic Affairs. Various collaborations Sabic and Plastic Energy have been collaborating since 2019 to produce and market "circular" polymers, included in Sabic's Trucircle catalog. The Saudi group has thus been able to collaborate with converters, consumer goods groups and/or retail chains to produce various packaging: among these early users are, in particular, Albéa, Aptar, Avery Dennison, Berry Global, Huhtamaki, Sealed Air, Walki, Tupperware, Unilever and Tesco. “The new unit will allow Sabic to significantly increase the production of certified circular polymers in order to provide customers with better access to sustainable materials that have been recycled, reused and produced in a way that can help protect natural resources from our planet, acting as a back-up solution,” says Fahad Al Swailem, vice president responsible for polyethylene and polymer sales at Sabic. Thermal anaerobic conversion Plastic Energy has developed a patented anaerobic thermal conversion (TAC) technology that transforms a wide range of end-of-life, dirty or contaminated plastics that are difficult to recycle using conventional processes, into synthetic pyrolysis oils that, when refined, yield It is possible to produce polymers with properties identical to those of the original materials. The company already operates two chemical recycling plants for plastics in Seville and Almeria, Spain, since 2014 and 2017. The new unit will produce both this oil and resins. A. Jadoul
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rNEWS: Erema Recycling Systems for Irrigation PipesErema recycling systems for irrigation pipes With a view to the circularity of plastic waste in the irrigation sector, Erema helps to recycle the production waste of LLDPE pipes. The systems involve the recovery of irrigation pipe processing waste through the grinding and granulation of low density PE pipes. According to Erema, the system was designed by its Pure Loop brand and can handle materials such as drip tubing and irrigation tubing that accumulate as waste during product manufacturing or are discarded during quality checks. Erema declares that this technology allows the reuse of waste, in the form of granules, which come from production, in a mixture with the virgin PE material without suffering a decrease in quality. According to Erema, the recycling concept created by Pure Loop "has already been adopted by irrigation system manufacturers in the United States, Israel, Italy and Mexico." The company adds: “They operate recycling plants with flow rates of 100 to 500 kilograms per hour and reuse the recycled pellets produced in proportions of up to 20 percent in the production process. Photo: Pure Loop
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First Course for Experts in Circular Economy for IndustryThe interest in the circular economy is no longer expressed only in the dreams or good intentions of environmentalists or ordinary citizens, but has now become an industrial need to be pursued in order to respond to market demands The stringent European regulations on polluting emissions and the need to produce in a sustainable way have increased the demand for new specialized professional figures in the world of work. As la Repubblica reports in this article, the world of work is in turmoil due to these important transformations. Green and sustainability have increasingly larger numbers: over 3 million employed. And now Experts in Circular Economy are being trained for industry Sustainability, circular economy, green. They are no longer trends or fashions, but new economic and social paradigms. Various aspects of society will be shaped on their growth, which will be driven even further by large community investments, starting with training. Meanwhile, the numbers from the Symbola Foundation report: Italians who work in the green sector are 3.1 million, 432 thousand companies have invested in the green economy in the last 5 years, green employment growth of 3.4% from 2017 to 2018. According to the numbers contained in a LinkedIn survey, Italy is one of the best countries for a career in 'green jobs', with Milan in 7th place globally for the concentration of sustainability professionals. Europe has seen a 13% increase in the number of sustainability professionals over the past year, with growth of 7.5%, higher than the global average. Demand for sustainability-related jobs also grew by 49% of jobs available on LinkedIn for sustainability-related roles in Europe. As regards work in the circular economy, Italy is second only to Germany, with 517,000 employed against 659,000. The people who in our country are employed in the 'circular' sectors are 2.06% of the total, a value higher than the EU 28 average which is 1.7% (source: National report on the circular economy in Italy, created by Circular Economy Network). In such a scenario, the world of training is addressing the issue of creating professional figures that are consistent with market trends. Especially in the application of the concepts of the circular economy to the world of industry. From this approach was born the first higher technical training course for circular economy experts for industry , promoted by ART-ER (the Emilia-Romagna Consortium Society, with the aim of promoting sustainable growth in the region) in within the European IFTS Circular Society project. The world of professional training is increasingly oriented towards sustainability but the peculiarity of this course, unique in Italy, is the creation of a new professional figure, that of the Technician for Sustainability and Circular Economy of Industrial Processes complete with the release of Higher Technical Specialization Certificate. A figure increasingly requested by the world of work.
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