From the CEO
Good afternoon folks,
The bottom of the raw materials market feels near. Economic signals foreshadow stimulus, policy promotes domestic manufacturing, and supply capacity continues to vanish via shutdowns. When broader relief hits—lower interest rates and economic volatility—the depleted capacity base will catalyze the next boom in raw material prices and margins.
In plastics, certain PP and PE grades are now touching the 20's (five-year lows), while PET is holding in the 50's thanks to import constraints. Buyers are taking large positions while resin is cheap. Sellers are taking liquidity as the market provides it to keep cash flowing. Available cash and storage space are a good trade for commodities at these prices.
At Matium, we're rolling out live auctions with more resin producers and onboarding end-users at record speed to streamline liquidity for the market. Our AI is already matching buyers and sellers across 7,000+ verified plastics companies, again removing friction. Engineering resins, machinery, and paper markets go live in Q1.
Great connecting with so many of you at the US Plastics Pact and AMI events last week. The turn of the cycle is coming—be ready.
Thank you,
Bailey Robin - Cofounder/CEO
Key Indicators
| Indicator | Current | MoM | QoQ | YoY |
|---|---|---|---|---|
| Federal Funds Rate, % | 4.09 | -0.13 | -0.20 | -0.85 |
| PPI - Plastics and Resin | 316.3 | 1.2 | -4.0 | -0.3 |
| PPI - Trucking Rate | 186.9 | 2.1 | 0.4 | 1.7 |
| PMI - Manufacturing | 48.7 | -0.4 | 0.1 | 0.9 |
| US Plastics Imports, $B | 6.31 | 0.75 | 0.52 | -0.11 |
| US Plastics Exports, $B | 6.45 | -0.23 | -0.20 | -0.03 |
| US Plastics Production Index | 97.05 | -0.65 | -2.17 | -2.37 |
Sources: FRED, ISM, US Census.
Markets & Trade
1. Weekly Chemistry and Economic Trends
Source: American Chemistry Council
The ISM Manufacturing PMI fell to 48.7 in October, indicating an accelerated contraction in manufacturing activity, with production shifting from expansion in September to contraction and key indicators such as new orders, employment, and inventories decreasing, impacting plastic and chemical manufacturers' output and demand.
Chemical industry data showed contraction in new orders, production, employment, inventories, order backlogs, exports, and imports, with ongoing concerns over tariff impacts and global economic uncertainty causing order cancellations and lowered financial expectations for 2025.
Chemical railcar loadings decreased 2.7% week-over-week but showed a 1.5% year-over-year increase, reflecting recent fluctuations yet some resilience in chemical shipments that could affect supply chain logistics for plastics producers.
Energy market conditions showed falling oil prices due to oversupply and weakened demand, while rig counts declined slightly, factors likely to influence feedstock pricing and availability for plastic resin production.
2. PLASTICS Economic Analysis: Rate Cuts, Tax Policy Set the Stage for Long-Term Manufacturing Growth
Source: Plastic Industry Association
The Federal Reserve cut the federal funds rate twice in 2025, totaling 50 basis points, with another cut possibly forthcoming before year-end, affecting financing costs for plastics manufacturers.
Lower interest rates are expected to stimulate investment spending across the plastics industry value chain, potentially accelerating growth in compounding, tooling, and full-scale production segments.
Plastics production previously slowed when the federal funds rate reached 4.0%; the current rate cuts could reverse this trend, though monetary policy effects will manifest with a time lag.
Tax policy changes alongside rate cuts create a favorable economic environment that may boost manufacturing investment and consumer spending, supporting long-term expansion in the U.S. plastics industry.
3. BIR Convention: Suggested Trade Measure Called Unhelpful by Plastics Recyclers
Source: Recycling Today
European plastics recycling capacity is projected to contract by nearly 1 million metric tons by the end of 2025, driven primarily by low oil prices rather than competition from imported recycled materials.
Financial incentives slated for introduction in France from January 2025 aim to encourage the use of recycled content, while Middle Eastern governments support circular economy initiatives related to plastics.
Plastics recyclers emphasize the necessity of imports for meeting demand, noting that imports from Asia and other regions represent only a small fraction of Europe's total polyethylene terephthalate (PET) recycling capacity.
Southeast Asian recyclers are advancing innovations in synthetic rubber recycling and recovered carbon black enhancement, targeting new applications such as battery manufacturing, with market differentiation supported by ISO certifications and upcoming regulatory requirements.
Business & Corporate Strategy
1. Amcor Reports Increased Sales in Q1 of '26
Source: Recycling Today
Amcor reported a 68% increase in net sales to $5.75 billion and a 92% rise in adjusted EBITDA to $909 million in Q1 2026, driven primarily by its acquisition of Berry Global.
The acquisition, finalized on April 30, positions Amcor as the global leader in consumer packaging and dispensing solutions with strong capabilities in material science and innovation to meet sustainability goals.
The company is evaluating strategic options for its noncore North American beverage business while reporting mixed volume trends across its flexible and rigid packaging segments, with growth in healthcare and pet care categories offset by declines in other areas.
2. LYB Reports Q3 Losses in 'Challenging Market Environment'
Source: Recycling Today
LyondellBasell (LYB) reported a net loss of $890 million in Q3 2025, down from profits in previous quarters, amid a challenging market environment with rising monomer costs pressuring polyethylene spreads and weak polypropylene demand.
Improved profitability in Olefins and Polyolefins Americas was driven by increased margins and sales volumes following successful plant turnarounds, while European operations faced pricing pressure due to import competition and weak demand.
The company plans maintenance-driven downtime for key assets to align production with global demand and reduce working capital, anticipating lower Q4 operating rates and persistent margin pressures from higher feedstock costs and subdued market demand.
3. Loop Industries Inks Offtake Agreement with Nike
Source: Resource Recycling
Loop Industries signed a multiyear offtake agreement with Nike to supply Twist, a virgin-quality circular polyester resin made exclusively from textile scrap, positioning Nike as the anchor customer for the Infinite Loop India manufacturing facility.
The Infinite Loop India facility, created in partnership with Ester Industries, aims to significantly reduce environmental impact by cutting greenhouse gas emissions by 81% and saving up to 418,600 tons of CO2 emissions annually compared to fossil fuel-based polyester production.
Nike's commitment to sustainable materials aligns with its 'Move to Zero' campaign and goal of using 50% renewable or recycled materials across all products by 2030, with Twist polyester offering a scalable solution.
Innovation & Technology
1. Israeli Startup to Pilot PVC Recycling in Ohio
Source: Resource Recycling
IO, an Israeli cleantech startup, is launching a pilot facility in Ohio to test its proprietary technology for converting PVC waste into pyrolysis oil suitable for traditional refining processes, addressing a significant challenge in plastics recycling.
The Ohio pilot facility will process up to 5,000 metric tons annually and serve as proof of concept for commercial-scale plants capable of handling 50,000 metric tons per year, targeting widespread deployment across North America.
IO's technology uniquely converts mixed PVC waste streams—including difficult materials like wire and cable—into oil with low chlorine content below 10 ppm, eliminating the corrosion risks typically associated with PVC recycling.
2. P&G Works with Lindner on Recycling Process
Source: Recycling Today
Procter & Gamble and Lindner-Recyclingtech have developed the Flexloop process, a solvent-based mechanical recycling technology that removes contaminants like NIAS, odors, adhesives, and printing inks from postconsumer plastics, significantly improving recyclate purity.
Flexloop enables production of high-quality recycled resin suitable for sensitive applications, such as cosmetics and personal care packaging, opening new markets for recycled plastics beyond common secondary uses.
The modular Flexloop system integrates seamlessly with existing Lindner washing recycling lines, allowing recyclers to upgrade their mechanical recycling capabilities without substantial capital investments compared to chemical recycling.
Sustainability & Resource Management
1. WM Now Accepts To-Go Cups in Curbside Recycling
Source: Recycling Today
WM has expanded curbside recycling acceptance to include polypropylene (PP) plastic cups and paper to-go cups across more U.S. local recycling programs, aiming to increase recycling rates for these materials.
The company is working to achieve 'Widely Recyclable' status for PP cups and 'Check Locally' designation for paper cups on the How2Recycle label, which would broaden consumer recycling access.
WM is investing $1.4 billion in new recycling infrastructure to enhance capabilities for processing everyday plastic and paper cups, facilitating their conversion into new products.
2. Food-Grade PP Makes Inroads in Americas
Source: Resource Recycling
The NextLoopp initiative is advancing the development of food-grade recycled polypropylene (R-PP) in the Americas, though progress is slower compared to Europe due to differing market priorities.
Key milestones include L'Oreal expanding its participation to the Americas and Mexico's Alcamare International Recycling Group becoming the first North American recycler to join, facilitating scalable closed-loop PP recycling solutions.
NextLoopp leverages AI-enabled sorting, improved decontamination, and FDA compliance processes to produce high-purity food-grade R-PP resin, recently receiving a Letter of No Objection from the US FDA for direct food contact applications.