China economy – The U.S. debt has surged to $35 trillion, with daily servicing costs exceeding $3 trillion 09-09-2024
China economy
Polymers – U.S. R-PET Market Stability in August 2024 Despite Minor Fluctuations
Crude Oil Prices Trend
Crude Oil Prices Trend by Polyestertime
China’s economic difficulties continue to grow, leading JP Morgan to downgrade its recommendation for Chinese stocks
Citing volatility from upcoming U.S. elections, weak political support, and economic headwinds, the bank downgraded China from “overweight” to “neutral.” JP Morgan joins other firms like UBS and Nomura in reducing expectations for China’s market performance. The CSI 300 index has fallen by 5.6% this year, ranking among the worst performers globally. China economy
Concerns about China’s GDP are increasing, with doubts over reaching the 5% growth target. In August, the manufacturing PMI index dropped to 49.1, marking the fourth consecutive month of contraction. Weak industrial production, low consumption, and a real estate crisis further hinder recovery. China’s GDP growth slowed to 4.7% in the second quarter, down from 5.3%.
Additionally, JP Morgan warned of the risks from another trade war with the U.S. and escalating tariffs, which could further strain China’s economy. Analysts predict China’s long-term growth will decline due to supply chain shifts, ongoing U.S.-China tensions, and internal instability. Recent trade actions, including 100% tariffs on Chinese electric vehicles by Canada, mirror similar moves from the U.S. and the EU, deepening concerns over China’s economic future. China economy
Indorama and PET recycling
Indorama Ventures Public Co. Ltd., a leading producer and recycler of PET, has announced a joint venture with India’s Varun Beverages Ltd., PepsiCo’s second-largest global bottler, to establish PET recycling facilities in India. The collaboration aims to meet growing demand for recycled PET (rPET) content, supporting sustainability efforts across the region. China economy
Through its subsidiaries, IVL Dhunseri Petrochem Industries Ltd. and Dhunseri Ventures Ltd., Indorama is building two greenfield PET recycling plants, located in Kathua, Jammu & Kashmir, and Khurdha, Odisha. Expected to be operational by next year, the facilities will contribute to a combined annual capacity of 100,000 metric tons of rPET.
Yash Lohia, Chairman of Indorama’s ESG Council, highlighted the partnership’s significance in addressing India’s increasing demand for sustainable packaging. He noted that these facilities will transform post-consumer PET bottles into valuable resources, helping reduce plastic waste.
Varun Jaipuria, Vice-Chairman of Varun Beverages, emphasized the venture’s alignment with the company’s environmental goals and its broader commitment to a circular economy. China economy
The partnership aligns with India’s regulatory push for rPET content and reflects both companies’ commitment to advancing recycling infrastructure. Indorama, the world’s largest PET recycler, has set a target to recycle 750,000 tons of PET annually by 2025, furthering its leadership in sustainable packaging.
Plastic to Power: Transforming Trash into World-Changing Hydrogen
Plastic waste is a growing issue in the United States, with projections estimating 220 million tons of plastic waste in 2024—a 7.11% increase from 2021. A significant portion of this waste is mishandled, leading to severe environmental consequences. Only 19.8% of recyclable plastics like PET, HDPE, and PP are actually being recycled, while the rest ends up in landfills, oceans, or incinerated. China economy
This week, on September 5, marks the theoretical “Plastic Overshoot Day,” when plastic waste production exceeds the planet’s ability to manage it. States such as Michigan, Indiana, and Illinois top the list for per capita plastic waste generation, making this a pressing issue in the U.S.
A promising solution to this dilemma is the conversion of plastic waste into hydrogen fuel. This process not only addresses the plastic pollution crisis but also provides a renewable energy source. By breaking down plastic waste through methods like pyrolysis, hydrogen can be extracted and used as a clean energy alternative. This dual benefit of waste reduction and energy generation could revolutionize both environmental management and the renewable energy landscape, potentially transforming trash into a valuable resource to power the world. China economy
The U.S. debt has surged to $35 trillion, with daily servicing costs exceeding $3 trillion
This issue is often ignored, especially during election years
The Federal Reserve’s upcoming rate cuts might offer temporary relief by lowering borrowing costs for households and businesses, and reducing the government’s debt servicing costs. China economy
However, the core problem remains: the U.S. spends more than it earns, leading to persistent budget deficits since 2002. Rate cuts won’t solve this.
The national debt has ballooned, partly due to the COVID-19 response.
The 10-year Treasury yield hit 5% last October, reflecting investor concerns. The Congressional Budget Office warns that debt held by private investors could rise to 93.7% of GDP within a decade, with total government debt reaching 166% of GDP by 2054. Despite robust demand for new debt, this situation is unsustainable. A loss of investor confidence could trigger a financial crisis. China economy
Historically, deficit spending has helped stabilize the economy during crises, but high levels of deficit spending now raise concerns about future crisis response capabilities. The U.S. risks a scenario similar to the UK’s under Liz Truss if it doesn’t address its debt problem.
Growing debt also risks devaluing the U.S. dollar, prompting investors to seek alternatives like Bitcoin and other currencies.
The urgent need for fiscal reform is clear. Without it, the U.S. faces a potential financial crisis with global repercussions. The $35 trillion debt crisis affects everyone, and immediate action is needed to avoid sinking further. China economy
Citroniq raises $12M to move forward with bio-based PP plant in US
Lummus Technology and Citroniq plan to build the first of four ‘green PP’ plants in the US state of Nebraska
Mel Badheka, President, Citroniq Chemicals (left) presenting deal trophy to Leon de Bruyn, CEO of Lummus Technology
The financing was co-funded by Lummus Technology, which last year announced plans to build four bio-based polypropylene (PP) plants in the United States in partnership with Citroniq.
The funding is expected to enable Citroniq to further advance the planning, design, and construction of its first ‘green PP’ plant in the US state of Nebraska.
$15.6m funding for Vic soft plastic recycling
More than 43,000 tonnes of soft plastics will be diverted from Victorian landfills every year, thanks to a $15.6 million investment in advanced and innovative recycling technology by the federal and state governments.
Three projects, delivered in partnership with the Victorian Government, have been announced under the new Recycling Modernisation Fund Plastics Technology stream, as governments work together on solutions for hard to recycle plastics, including soft plastics.
Pro-Pac Group in Reservoir received more than $6 million to expand its existing facility for transforming recycled feedstock into soft plastic with recycled content. China economy
It will produce up to 11,000 tonnes of Australian soft plastic packaging each year with 30 per cent recycled content. The project will deliver 14 direct jobs.
Naula in Altona received more than $5 million for advanced sorting and processing of up to 32,000 tonnes of soft and mixed plastics products per year, to refine them to produce new plastics such as food-grade packaging. This will help Australia to develop an advanced recycling supply chain that will turn post-consumer soft plastic waste back into food and other packaging. The project will deliver 61 direct jobs.
Sustainable Plastic Solutions received more than $4 million to install recycling technology to process an additional 8000 tonnes per year of agricultural plastics such as films, grain tarp and baling twine into high quality resins for remanufacturing back into original products. The project will deliver 25 direct jobs. China economy
China economy