Material Market Update - August 11, 2026

From the CEO

Good morning folks,

Summer is in full effect, plastic pricing has fallen near pre-conflict levels, and American industry is picking up momentum.

The plastics market has returned to its state of structural oversupply, after the Strait of Hormuz closure restricted feedstocks and sent pricing upward. PP and PE prices have fallen dramatically, both trading in the mid 40's for spot generic/widespec. PET is holding its price due to the rise in ocean freight, hovering around 70 cpp +/-.

This move in the market adds pressure to the recycled suppliers as their economics compress quickly. PP/PE regrinds now trade in the 30's, with more room to fall. PET regrinds/flake are trading in the 50's, but should hold due to PET's reliance on imports. With freight rates as high as they are, recycled supply chains need to optimize logistics and pricing in order to sustain themselves.

Though this news may take the wind out of some sails, the manufacturing activity is substantially better than it was last year. PMI is showing month-over-month expansion in purchasing activity. There is plenty of chatter of new projects, RFQ's, and planned investments. This is a good signal for anyone in the pre-product supply chain.

The forward-looking test is efficiency - the winners of net-new demand must compete on cost. The plastics industry has been stuck in its ways, but widespread turnover is ushering in a new wave of enthusiasts. This bodes well for America's chances to compete on a global scale, as we must lean into automation, innovation, and collaboration.

On the Matium front, we recently launched a preview of the world's first transaction-based pricing index. It is a fairly crude first iteration, but our goal is to get people thinking about what this market can look like with a neutral platform supporting all participants with information, infrastructure, and connectivity. We invite and appreciate all feedback - I want to hear your vision.

We will be sharing some news in August regarding a new phase of Matium, one that empowers traders to grow their businesses faster than ever before.

Belief is the seed that sprouts the future, and optimism is the water that feeds it.

Thank you,
Bailey Robin - Cofounder/CEO

Key Indicators

Sources: FRED, ISM, US Census.

Markets & Trade

1. US Imposes 50% Tariffs on Canadian Plastics, Autos

Source: Plastic Today

• The United States will impose a sweeping 50% tariff on Canadian imports, including a broad range of plastic products such as vinyl floor coverings, plastic tableware, and films, citing Canada's alleged discriminatory trade practices against US exporters.
• These tariffs, enacted under Section 338 of the Tariff Act of 1930, will surpass the scope of the USMCA and impact Canadian goods valued at billions, creating immediate new trade barriers for the plastics industry and complicating cross-border supply chains.
• Both US and Canadian officials acknowledge that the trade dispute has increased costs and uncertainty, with Canada asserting it is responding proportionally to US actions, while US policy aims to strengthen domestic manufacturing and offset perceived foreign inequities.

2. US Imposes Forced Labor Tariffs on 60 Economies

Source: Plastic Today

• The Trump administration has imposed new tariffs on imports from 60 economies that failed to prohibit forced labor in their supply chains, directly impacting plastics manufacturers, processors, and brands sourcing materials from these regions.
• The tariffs, determined through a comprehensive USTR investigation including hearings and thousands of comments, range from 10% to 12.5% and are structured based on each economy's enforcement of forced labor bans, with strategic exemptions to mitigate disruption for US manufacturers and supply chains.
• A legal challenge by small businesses has been filed against these tariffs, arguing that the USTR's approach was arbitrary and failed to account for each targeted economy's unique circumstances, raising questions about the enforceability and future stability of the measures.
• The escalation in tariff activity follows recent US actions against Canadian plastics and other goods, indicating a broader trend towards leveraging trade policy to address both human rights abuses and perceived trade imbalances that could reshape global plastics supply chains and cost structures.

3. Plastic's Recycling Landscape Remains Troubling

Source: Recycling Today

• Plastic recycling plant operators face mounting challenges as end markets for recycled materials become saturated with low-cost virgin resin, mainly due to global overcapacity stemming from aggressive petrochemical expansion, particularly in China.
• This overcapacity has driven down global prices for virgin plastics like PET, HDPE, and PP, making it difficult for recyclers to compete and contributing to a wave of plant closures and bankruptcies across Europe, Southeast Asia, and North America.
• New and stricter European regulations, including revised EU Waste Shipment rules and digital tracking systems, have increased compliance costs and financial risks for exporters, further straining the plastic recycling market.
• Upcoming bans on exports of plastic waste to non-OECD countries may lead to increased landfill and incineration in Europe due to a lack of domestic buyers, although long-term optimism persists based on legislative support and mandatory recycled content requirements.

4. Study Shows US Plastic Recycling Volumes Topped 5.1 Billion Pounds in 2024

Source: Recycling Today

• US post-consumer plastic recycling volumes surpassed 5.1 billion pounds in 2024, marking a 114.9 million pound increase since 2022, with plastic film showing the largest growth while bottle and rigid plastic recovery declined.
• The recycling market continues to face challenges from low virgin resin prices and soft demand for postconsumer recycled (PCR) resin, constraining industry margins and limiting investments in new capacity.
• Almost 94% of recovered plastics were processed in North America, reflecting a shift towards domestic recycling, but the lack of national reporting standards prevents the calculation of a consistent recycling rate.
• Expanded state policies, including seven states' adoption of packaging extended producer responsibility laws, are expected to drive more reliable reporting and funding, setting the stage for future infrastructure investments and stronger recycled material markets.

Business & Corporate Strategy

1. AI Boom Reshapes Chemical M&A Landscape

Source: Plastic Today

• Solstice Advanced Materials' $14.5 billion acquisition of Element Solutions signals a major shift in the specialty chemicals sector, as companies pursue M&A to rapidly access high-growth markets like electronics, semiconductors, and AI infrastructure.
• The deal highlights a growing premium for materials companies with strong exposure to electronics and advanced packaging, creating a two-tier valuation landscape and sparking increased competition among suppliers to serve evolving technology markets.
• For plastics and specialty materials firms, this transaction underscores the urgency to expand portfolios into adjacent categories such as advanced polymers and electronics materials, reflecting a broader industry convergence toward high-value, technology-driven applications.
• Industry experts anticipate continued mega-deals and consolidation, as companies weigh acquisition against organic growth, manage integration risks, and adapt capital strategies in response to evolving supply chain dynamics and global manufacturing shifts.

2. Continental Sells ContiTech for $4.6 Billion to Lone Star

Source: Plastic Today

• Continental has completed the $4.6 billion sale of its ContiTech industrial division—which manufactures rubber, plastic, metal, and fabric products—to Lone Star Funds, marking Continental's exit from non-tire operations and transition to a pure-play tire manufacturer.
• The transaction, which includes additional performance-based payments and awaits final regulatory approval, allows Continental to return approximately $2.86 billion to shareholders while strengthening its capital structure for its focused tire strategy.
• Lone Star Funds plans to support ContiTech as an independent global industrial specialist, investing in its portfolio, technological capabilities, and growth initiatives in key sectors including plastics, mining, and mobility.

3. Coca-Cola Accelerates Reusable Bottle Plans

Source: Plastic Today

• Coca-Cola and its bottling partners are significantly expanding global refillable bottle programs, with investments targeting both glass and PET packaging to reduce packaging waste and encourage reuse.
• Key bottlers like Arca Continental are adopting universal and returnable bottle formats, investing over $23 million in Ecuador alone, and enhancing infrastructure to streamline operations and promote sustainable packaging across Latin America.
• Major facility upgrades, such as CCEP France's modernization and HaadThip Limited's new production line in Thailand, are increasing refillable bottle processing speeds and efficiency, supporting expanded market availability and consumer adoption.
• The expansion of refillable packaging relies heavily on robust collection systems, bottler investments, and consumer participation, with some markets—such as Argentina—achieving over 40% share of returnable packaging in total sales.

Governance & Oversight

1. House Subcommittee Hears Testimony on 2 Recycling Bills

Source: Recycling Today

• The House Energy & Commerce Subcommittee held a hearing on two bipartisan bills—the PACK Act and the Recycled Materials Attribution Act (RMAA)—which aim to create federal standards for packaging recycling claims and recycled content labeling.
• Supporters from major industry associations argue that these bills would streamline conflicting state regulations, establish science-based, uniform definitions for recycling and recycled content, and encourage investment and innovation in recycled materials and advanced recycling technologies.
• Opponents, including consumer advocates, warn that federal preemption may weaken state-level protections against greenwashing and could legitimize accounting methods that potentially mislead consumers about actual recycled content in packaging.
• If enacted, the legislation would grant the Federal Trade Commission oversight of national packaging and recycling claims, directly impacting labeling practices and recyclability claims for plastics and flexible packaging across the U.S. market.

2. Federal Judge Blocks California's SB 343

Source: Plastic Today

• A federal judge has issued a preliminary injunction halting enforcement of California's SB 343 'Truth in Recycling' law, citing unconstitutional vagueness and infringement of commercial speech rights.
• SB 343 would have prohibited the use of recycling symbols on packaging unless materials met stringent, state-defined recyclability standards, affecting how manufacturers communicate environmental claims.
• The judge warned that unclear requirements could lead manufacturers to remove recyclability labels from genuinely recyclable plastics to avoid legal risks, potentially increasing landfill rates for recyclable materials.
• Industry groups have welcomed the decision, arguing that the law would stifle truthful recycling information on packaging, while California officials are reviewing legal options as the litigation continues.

3. California Agricultural Groups Call for Replacement of SB 54

Source: Recycling Today

• California agricultural groups are urging Governor Newsom and state legislators to repeal and replace SB 54, the state's extended producer responsibility packaging law, citing significant cost burdens and impractical compliance requirements that threaten the food supply chain.
• Industry representatives warn that the law will substantially increase operational costs for farmers and food producers, with new producer fees anticipated soon and potential grocery price hikes expected as early as this fall.
• The coalition underscores that the estimated annual costs to California households could reach $948–$1,373 due to SB 54, characterizing them as hidden taxes that disproportionately impact consumers and threaten family farms.
• Stakeholders advocate for a replacement policy that balances effective recycling objectives with food safety, realistic packaging requirements, and minimized financial impact on businesses and consumers during a period of economic strain.

Innovation & Product Development

1. Teijin Unveils Self-Healing, Recyclable Carbon Fiber Composite

Source: Plastic Today

• Teijin Ltd. has developed a new thermosetting carbon fiber-reinforced plastic (CFRP) that combines heat-activated self-healing capabilities with high recyclability while maintaining the mechanical properties of conventional CFRPs.
• The innovation addresses longstanding sustainability challenges in composite materials, offering simplified recycling and carbon fiber reclamation through chemical decomposition, drastically reducing environmental impact compared to traditional disposal methods.
• Supported by Japan's Strategic Innovation Promotion Program, the new material targets applications in aerospace, automotive, and industrial machinery, with sample distribution planned for 2028 and ongoing collaborations with universities and industry partners.
• Teijin is building supply chain alliances and advancing commercialization to accelerate ecosystem development for this next-generation CFRP, signaling a strategic push toward circular economy solutions in advanced materials markets.

2. From Plastic Waste to Chocolate Wrappers: LYB, Mondelez Advance Circular Packaging

Source: Plastic Today

• LyondellBasell has partnered with Mondelez International, Amcor, and Taghleef Industries to develop flexible packaging for Marabou chocolate bars, utilizing LYB CirculenRevive polymers sourced from 75% chemically recycled content.
• This collaborative solution leverages an ISCC PLUS-certified mass balance approach, enabling the use of hard-to-recycle post-consumer mixed plastic waste in high-quality food packaging applications.
• Future supply will be supported by LYB's MoReTec-1 chemical recycling facility in Germany, expected to produce 50,000 metric tons of circular feedstock annually and enhance access to advanced recycled content within LYB's production ecosystem.
• The initiative underscores industry momentum toward meeting European recycling and recycled-content regulations and demonstrates how value-chain collaboration can accelerate scalable, food-grade circular packaging solutions.

3. Smart Plastic Technologies Earns Patent for Bio-Assimilating Polyolefin Technology

Source: Plastic Today

• Smart Plastic Technologies has secured a U.S. patent for its SPTek Eclipse bio-assimilation master batch technology, covering specialized formulations for HDPE/LLDPE blends in flexible packaging and polypropylene in rigid applications.
• The patented master batches are engineered to enable polyethylene and polypropylene products to break down into CO₂, water, and biomass after their functional life, addressing longstanding microplastics and end-of-life challenges in the plastics industry.
• Issuance of the patent provides manufacturers and brand owners with credible, publicly reviewable validation of the technology, accelerating discussions with converters and removing a key barrier to broader market adoption.
• Alongside the patent, Smart Plastic is proposing a new industry framework, the Smart Standard, for labeling and end-of-life handling of bio-assimilating plastics, inviting stakeholders to contribute to practical solutions where conventional recycling or composting options are limited.

Sustainability & Resource Management

1. Ellen MacArthur Foundation Partners to Tackle Plastic Pollution in Brazil

Source: Recycling Today

• The Ellen MacArthur Foundation has launched a partnership with Recife, Brazil, supported by major corporations and the Ministry of Environment, to pilot a new city-scale collection and recycling system for plastic packaging.
• The initiative aims to address systemic barriers in scaling plastics recycling—including a financing gap and limited formal access—by developing a detailed action plan over the next six months and unlocking up to BRL $300 million in long-term investment, with potential implementation starting in 2027.
• Drawing on input from over 80 stakeholders, the project intends to create a model for efficient, equitable recycling that could inform national policy and be replicated in other Brazilian cities, addressing both environmental and social issues such as fair compensation and recognition for waste pickers.
• With Recife facing challenges like only 1% of households having formal recycling access and widespread improper plastic disposal, the partnership seeks to significantly increase recycling rates, recover lost recyclable value, create thousands of jobs, and reduce plastic pollution in waterways.

2. Amazon Plastic Use Flat Despite Shift to Paper

Source: Resource Recycling

• Amazon's latest sustainability report indicates its global use of single-use plastic packaging remained flat in 2025, with only marginal reduction in North America and increases in Europe and other regions.
• Despite converting automated packaging to paper-based materials—helping avoid 288 million plastic bags—Amazon has not provided detailed transparency on overall plastic usage, prompting continued calls from shareholders and NGOs for clearer reporting and measurable goals.
• While competitor retailers disclose plastic packaging metrics and commit to reductions, Amazon lags in public commitments and transparency, especially regarding product packaging for food and own-label brands.
• Initiatives such as expanding recycling programs, implementing AI waste-sorting technology, and piloting new recycling solutions are ongoing, but operational waste recycling rates have plateaued since 2023, highlighting challenges in achieving further waste reduction.

3. Mars Increases Use of Recycled Content

Source: Resource Recycling

• Mars increased its use of recycled plastic by about one third in 2025, incorporating 18,721 metric tons of recycled content to reach 9.2% of its global plastics usage, though this remains well below its original target of 30% PCR by 2025.
• Recent packaging changes, such as shifting from multi-material pouches to tin canisters and from polystyrene trays to recyclable paperboard, helped Mars reduce virgin plastic use by 5.9% since 2019, despite a 1.4% increase from 2019 levels in 2024.
• Mars piloted a specialty plastic mail-back recycling program in its Veterinary Health division, expanding it to 173 clinics globally and diverting over 4 metric tons of plastic from landfills within a year.
• Collaborating with industry and NGOs, Mars is participating in large-scale initiatives like the Ellen Macarthur Foundation partnership to invest in recycling systems in Brazil, aiming to accelerate the shift toward circular packaging and improve collection infrastructure.