Material Market Update - February 2, 2026

From the CEO

Good morning folks,

Trump's selection of Kevin Warsh's for Fed Chair sent markets downward as Wall Street had it's bets on a weaker dollar. To be honest, this news initially gave me heartburn. Then I started digging. Warsh aims to decrease the Fed balance sheet, but claims that they can do so while also delivering lower interest rates. Though the suits may not like the pick, Warsh has voiced his sentiment for protecting the consumer - Trump's most valuable bargaining chip. For material markets, a strategy that strengthens the consumer and lowers interest rates is a win.

In plastics, the news makes it feel like a bloodbath. I've spoken with resin producers who see operating rates staying low and prices hovering for the foreseeable future. With PP/PE resins in the 30's, the recycling industry has to feel like Rocky in the final round. Recyclers surviving this market are incredible operators—be proud to keep the lights on. On the flip side, scrap sources are growing as domestic manufacturing evolves. Manufacturers need to start normalizing that they may no longer get paid for their scrap—and in some cases, will need to pay for removal. The economics are changing and recyclers need to leverage their position.

At Matium, we want to do our best to help the folks in this industry make ends meet. As many of you know, Matium hosts the only free market for plastic suppliers, buyers, and traders to do business on. Later this week, we will be launching our updated material model to support grades of plastics beyond just commodities - engineering, specialties, and everything in between. Shortly thereafter, we will also update the model to support the trade of paper and metals. With this update, all recyclers will have access to a market that distributes their inventory and services to thousands of potential customers through our AI-matchmaking system.

The team continues to push the boundaries on industrial trade and we have a few more tricks up our sleeve for Q1. Credit risks and late payments hurt the small guys, but not for long.

Looking forward to seeing some of you in San Diego for PRC!

Thank you,
Bailey Robin - Cofounder/CEO

Key Indicators

Sources: FRED, ISM, US Census.

Markets & Trade

1. Dow Makes Case for PE Price Hikes Amid Layoffs

Source: Resource Recycling

Dow announced a significant workforce reduction of 4,500 positions (13% of global staff) as part of a cost-cutting initiative driven by AI and automation, following a $2.4 billion annual loss and ongoing margin pressures in polyethylene (PE) production. Despite challenging market conditions, including a 2% year-on-year decline in Q4 packaging and specialty plastics volumes, Dow emphasized robust PE demand outpacing GDP and reported a 7.7% increase in US PE exports primarily targeting Asia and Europe. Dow intends to support PE price increases in 2026, citing declining inventories and planned feedstock supply constraints due to scheduled maintenance at its Louisiana steam cracker, potentially tightening ethylene availability and influencing pricing up the value chain.

2. Weekly Chemistry and Economic Trends (01-30-26)

Source: American Chemistry Council

Chemical shipments in the U.S. rose for a second consecutive month in November, up 0.5%, while chemical inventories declined for a third straight month by 0.5%, driving the inventories-to-sales ratio down to 1.22—the lowest since March 2022. Chemical producer prices fell 0.6% in December, marking the third monthly decrease, with price declines across bulk petrochemicals, organics, plastic resins, synthetic rubber, and manufactured fibers; however, prices remained 1.1% higher year-on-year. Chemical railcar loadings reached 33,773 for the week ending January 24th, representing a 7.0% increase year-to-date, signaling stabilization in supply chain activity. U.S. trade deficit widened to $56.8 billion in November as imports rose 5.0% and exports fell 3.6%, with notable declines in the export of industrial supplies and materials (including chemicals), affecting demand for plastic resins.

3. Global POE and PPO Markets Set to Surge 5.6% Annually Through 2036

Source: Plastic Today

Global demand for polyolefin elastomers (POEs) and plastomers (POPs) is projected to grow at a 5.6% CAGR through 2036, reaching over 4.4 million tonnes, primarily driven by their expanding use in solar module encapsulation and automotive lightweighting. Energy sector advancements, such as the adoption of high-efficiency solar cell structures, are increasing reliance on POE and EVA resins for reliable encapsulation, with POE expected to slightly outpace EVA in growth due to rising module outputs. Automotive manufacturers are increasingly utilizing POEs to enhance impact modification in polypropylene compounds, especially as Europe moves toward legislation mandating higher recycled plastic content in new vehicles from 2036 onwards. Competition is intensifying as Chinese POE/POP producers enter the market, challenging established suppliers despite initial production hurdles, and monomaterial packaging trends are shaping the adoption of POPs and alternative sealant films.

Business & Corporate Strategy

1. Pretium Packaging Files for Chapter 11 Bankruptcy to Restructure Debt

Source: Plastic Today

Pretium Packaging, a major US plastic container manufacturer, has filed for Chapter 11 bankruptcy to address long-standing financial pressures and reduce debt by over $900 million through a pre-packaged restructuring agreement. The company secured more than $175 million in liquidity, $530 million in new near-term debt commitments from existing lenders, and a $50 million equity investment from Clearlake Capital to support future growth. Despite the bankruptcy proceedings, Pretium will continue normal operations, fulfilling vendor and supplier obligations while leveraging its improved financial position to pursue innovation and sustainable packaging initiatives.

2. Alpek Polyester USA in Pennsylvania Set to Close

Source: Recycling Today

Alpek Polyester USA will close its Reading, Pennsylvania bottle-to-bottle PET recycling facility on March 15, impacting 100 employees and removing one of the largest standalone rPET operations in the Americas from the supply chain. This marks the second closure of an Alpek rPET facility in the U.S. in less than a year, following the July 2025 shutdown of its Cedar Creek, North Carolina site, signaling a significant contraction in the company's U.S. recycling capacity. The closures reduce Alpek's domestic recycled PET output at a time when demand for bottle-grade rPET remains high, potentially impacting regional supply for bottlers, especially those relying on materials collected from major Northeastern cities.

3. Betterware De México Acquires Tupperware's Latin American Assets

Source: Plastic Today

Betterware de México has agreed to acquire Tupperware's operating assets in Latin America for $250 million, securing exclusive, perpetual rights to the Tupperware brand in the region and focusing on the core markets of Mexico and Brazil. The transaction is engineered to deliver substantial earnings accretion and operational synergies for BeFra, with projected immediate EPS growth, significant EBITDA contribution, and manageable increases in leverage, while maintaining the company's dividend policy. BeFra intends to preserve the unique brand identities of Betterware, Jafra, and Tupperware, leveraging its direct-to- consumer expertise and extensive distribution networks to drive revenue recovery and reinvigorate product innovation across its expanded portfolio. Tupperware Latin America's established manufacturing presence and sales infrastructure will aid BeFra in restoring sales to historical levels and further strengthen its leadership position in the region's direct- selling and home goods market.

Governance & Oversight

1. CalRecycle Opens Comment Period on Proposed SB 54 Revisions

Source: Recycling Today

CalRecycle has opened a 15-day public comment period on proposed revisions to the permanent regulations under California's S.B. 54 Plastic Pollution Prevention and Packaging Producer Responsibility Act, ending February 13. These proposed changes are a result of prior feedback and focus on adjustments to key regulatory language, with stakeholders encouraged to submit targeted, section-specific comments related only to the latest revisions. The National Stewardship Action Council (NSAC) has voiced both appreciation for addressed concerns and new issues with the draft, noting potential challenges such as compressed timelines, ambiguous language, and the prospect of inequitable compliance costs for the plastics packaging industry.

2. North Carolina Becomes 2nd State to Ban Chemical Used in Medical Devices

Source: Plastic Today

North Carolina has become the second U.S. state, after California, to ban the use of DEHP in medical devices, mandating a complete phase- out in IV bags by 2030 and in tubing by 2035. The legislation responds to health concerns linking DEHP—a plasticizer used to make medical plastics flexible—to potential cancer and endocrine disruption, signaling a broader shift in regulatory standards. Major manufacturers, such as B. Braun and Qosina, are proactively transitioning to DEHP-free alternatives like platinum-cured silicone and PVC, anticipating regulatory changes and evolving industry standards. Government scrutiny of harmful chemicals in plastics, including PFAS and ethylene oxide, is accelerating, suggesting manufacturers should prepare for further regulatory actions affecting medical device materials.

3. New Jersey's Skip the Stuff Law Targets Single-Use Plastics

Source: Plastic Today

New Jersey enacted a 'skip the stuff' law banning the automatic inclusion of single-use plastic cutlery, condiments, and napkins in takeout orders, effective August 2026, requiring customers to request these items. The regulation targets restaurants, catering services, and delivery platforms, and mandates reusable foodware for dine-in establishments seating more than 10, with exemptions for schools, healthcare, and corrections facilities. Businesses face escalating penalties for non-compliance and must participate in a statewide education campaign, as the measure aims to reduce plastic waste and help businesses cut costs. The law builds on New Jersey's broader packaging policies and reflects a growing national trend toward stricter single-use plastics regulations, signaling increased pressure on businesses to adopt sustainable packaging solutions.

Innovation & Product Development

1. Medical Device Makers Explore PTFE Alternatives at MD&M West, as PFAS Concerns Drive Innovation

Source: Plastic Today

Medical device manufacturers are increasingly seeking alternatives to PTFE due to regulatory pressure and public concern over PFAS ('forever chemicals'), despite PTFE's ongoing FDA approval and essential role in medical applications. Several companies—Americhem, Zeus, Avient, and Insight Polymers— are launching new PFAS-free compounds and polymer technologies designed to deliver similar or superior lubricity, wear resistance, and biocompatibility compared to traditional PTFE. These innovative materials not only address evolving regulatory and sustainability requirements but also offer benefits such as improved bonding, sterilization options, streamlined manufacturing, and compatibility with thin-walled and high-wear medical device components.

2. New Piezoelectric Polymer Breaks Heat Barrier

Source: Plastic Today

Toray Industries has developed what is likely the world's first piezoelectric polymer that can withstand temperatures over 200°C, overcoming the limitations of conventional materials like PVDF and lead zirconate titanate which have lower heat tolerance or challenging physical properties. The new polymer maintains polarization at high temperatures, enabling reliable vibration detection and monitoring for applications in mobility, robotics, industrial machinery, and aerospace, particularly in environments near engines or hot components. Available as varnish, film, or nonwoven fabric, the polymer is designed for large-area mounting on complex shapes, improving the versatility and deployment of vibration sensors for active noise cancellation and predictive maintenance. The material is both lead- and fluorine-free, compliant with RoHS and PFAS restrictions, and Toray is collaborating with customers to optimize the polymer for practical applications targeted for launch starting 2028.

3. Novel Molding Technology Overcomes Challenges in Producing Thick-Walled Thermoplastic Parts

Source: Plastic Today

Displacement intrusion molding (DIM) is a newly patented hybrid process that combines injection molding, extrusion, and compression molding to enable efficient production of large, thick-walled parts from high-performance thermoplastics—previously difficult or uneconomical with conventional methods. DIM uses thermoplastic pellets rather than powder, expanding material selection and yielding cleaner, high-quality parts with improved density, crystallinity, and reduced internal stresses, often eliminating the need for post-processing like annealing. The modular DIM system can be retrofitted onto standard injection molding machines without major equipment investments, allowing manufacturers to cost-effectively scale production and quickly adapt to new material or design requirements. Early adopters have achieved up to 400% improvements in part quality using DIM with advanced materials (such as PBI, PEEK, and PEKK), and the technology is now positioned for broader industry collaboration and global expansion.

Events & Conferences

1. Sustainable Manufacturing Takes Center Stage at MD&M West

Source: Plastic Today

The Sustainable Manufacturing Conference, newly introduced at MD&M West 2026 (Feb. 3 to 5, 2026, Anaheim, CA), will focus on reducing carbon footprints and operational costs through advanced manufacturing technologies and strategies, with a significant emphasis on plastics sector applications. Key sessions will highlight the role of computerized maintenance management systems (CMMS) and predictive maintenance in optimizing sustainability metrics, tracking waste reduction, and improving energy management in manufacturing environments. Experts will present on energy-efficient manufacturing of advanced materials—such as through field-assisted sintering and additive manufacturing—and discuss product design approaches for circularity, addressing component to system-level strategies for sustainable plastics and industrial products.