The majority of first-quarter earnings calls have occurred, and as always, there’s a lot to unpack. Keep scrolling, or click the company of interest, to get a quick read on what matters most to recyclers.
Common themes
- Soaring margins for virgin resin producers
- War-related supply constraints driving higher pricing
- Peak pricing seems to have passed (for now)
- Crude oil prices expected to remain elevated
- Surprise at China running down PE inventories, leaning into coal-based production
- North American polyolefins have cost advantage
- Limited upside from World Cup games
Alpek
- Targeting conversion of surge in spot sales to long-term contracts
- Effect from tariffs, USMCA talks already baked into guidance
- Chinese PET margins soared during Q2
Amcor
- Global flexibles segment sales volumes rose by 1% on year; North America/EU up “modestly”
- Focus shifting to higher-margin applications, toward pharmaceuticals and away from medical
Dow
- Bullish on August PE pricing
- “Resilient” packaging demandÂ
- Lower operating rates for Q3 on seasonality, turnarounds
- Optimism for construction improvement amid lower interest rates
Eastman
- Kingsport plant utilization higher than 2025’s 50%, with increased demand
- Yields above 90%
- CEO Mark Costa: “value proposition on the rPET side is much stronger today than it was a year ago”
- Underlying consumer demand still soft
Husky
- Stabilizing PET resin prices shortening timeline for order conversion
- Market volatility still deferring orders for aftermarket tooling products
- Uncertainty delaying consumer brand product launches
LyondellBasell
- North American PE plants to run at 85% in Q3 (from 90% in Q2)
- Packaging film remains strong, about 70% of LYB PE demand
- Startup of MorTec-1 in Germany expected end-2027
- Majority of MorTec-1 output presold through brand-owner agreements
PureCycle
- Customer commitments to accelerate in H2
- Breakeven targeted at 40-50% run rate
- In-house compounding enabling direct-to-prospect samples for Thailand, EU
- Public announcements often lag signed commitments
- P&G lids for Downy, Tide, Vicks ZzzQuil
Republic Services
- Q2 recycled commodity prices $136/ton, down $13 on the year
- Currently $140/ton; assuming $136/ton full-year average
- Polymer Center volumes rising, offset lower Q2 commodity values
- Allentown Polymer Center completion expected early 2027
Shell
- Monaca PE plant in Pennsylvania benefiting from North American feedstock advantage
Trex
- Accelerating ramp-up of Little Rock facility by over six months
- Increased demand driving quicker startup
- 95% of raws come from waste plastics; less volatility with “abundant supply”
- Growth driven by volumes rather than pricing
WM
- Recycled commodity pricing at $75/ton in Q2 (vs $84/ton a year ago)
- Processed 12% more recyclables in Q2 than in prior year period
- “Modest pressure” from lower recycling brokerage volumes
