The ‘carbon tariff‘ has been implemented

Recycled materials have not yet exploded

In the blink of an eye, the EU‘s "carbon tariff" has been in effect for a month and a half. As an important low-carbon material, recycled plastics, although highly popular, did not erupt as expected.

Recently, the prices of recycled plastics have fallen across Europe. Taking PET as an example, since early May, the prices of transparent bottle sheets have significantly decreased by 250 euros/ton, and the prices of food grade particles have decreased by 200 euros/ton. More and more application end enterprises are turning to using raw PET, which has plummeted in price. The price of native PET is much lower than that of recycled PET. In mid June, the price of raw PET was 1150-1200 euros/ton, compared to 1670-1880 euros/ton for food grade particles and 1140-1300 euros/ton for transparent bottle chips.

Since early May, the price of blow molded r-HDEPE has decreased by a cumulative 80 euros/ton, while the injection molding grade has decreased by 40 euros/ton during the same period. In the past two months, the price of r-LDPE primary color film has decreased by 60 euros/ton, and the price of r-LDPE transparent film has decreased by 80 euros/ton. Since early May, the price of r-PP has decreased by 90-100 euros per ton, while the price of r-HIP has decreased by 40 euros per ton during the same period.

Referring to the "carbon tariff" that officially came into effect on May 17th, in order to increase the unfair competition faced by EU countries‘ products and achieve the carbon neutrality goal set by the EU‘s "European Green Agreement", recycled plastics, as an important low-carbon material, not only failed to experience a surge, but also saw the price of recycled plastics decline throughout Europe.

Q:

Why did the EU‘s "carbon tariffs" not increase the price and competitiveness of recycled plastics in Europe?

Answer:

1. Insufficient demand;
2. The price of raw plastics is lower;
3. The "carbon tariff" currently mainly targets bulk commodities such as steel, aluminum, cement, and fertilizers, and does not include chemical products in the list;
4. Competition for imported materials from Europe;
5. Extension of supply line.

In other words, in Europe, recycled plastics are currently not affected by "carbon tariffs". Moreover, European recycled enterprises also face a dual squeeze from the price advantage of raw plastics and competition for imported materials. As demand enters the off-season, supply lines have also begun to extend

It is undeniable that low-carbon is still a hard indicator for the future. Faced with the pressure of the recycling industry, Ma Yiming, the founder and CEO of Ningbo Topcentral New Materials Co., Ltd., believes that compared to the sluggish environment, it is crucial for Topcentral to Topcentral^® For such growth and high-speed development enterprises, opportunities far outweigh challenges. When difficulties arise, another perspective is to help the industry form a great opportunity to upgrade technology and industry rules, which can better provide us with opportunities to overtake and catch up in many fields. Among them, regarding changes, changes, and fluctuations in the industry as crises, with danger ahead and opportunities behind. For the recycling industry, this may be a process of sweeping through the sand, but for the Topcentral^® Generally speaking, we will sprint forward with a continuous and sustainable spirit, constantly exploring and trying in this field, and stepping out of a strong path Topcentral^® A unique development path.

Facing the global digital wave, Topcentral ^® Actively taking measures, Topcentral^® Big data BgBAT built through digital cloud AI technology and recycling industry chain ™， Cloud Computing CLCAL ™， Artificial intelligence, sharp red chain^®、 TCBChain^®， For the special plastics that exist in the industry, they also have special functions, which can achieve full lifecycle digital traceability and 5-way (easy to recycle, process, use, recycle, and trace) design for the plastics in the entire series of Topcentral products. They completely implement a high green infinite cycle of production capacity, fully ensuring the quality and performance optimization of recycled materials while achieving long-term utilization. Next step, Topcentral^® We will comprehensively carry out digital work, further integrate industry resources, and with the support of digital technology, open up the upstream and downstream information exchange system of the industry, integrate resources throughout the entire industry chain, and further promote the development of the recycling industry.

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