Extrusion International USA 6-2020

26 Extrusion International 6/2020 EXTRUSION INTERNATIONAL INDUSTRY NEWS „ The Plastics Industry Association (PLASTICS) released its an- nual Global Trends report at the 2020 Global Plastics Summit (GPS). The report, which analyzes trade data from 2019 and the fi rst six months of 2020, paints a complex but promising portrait of the U.S. plastics industry in the international mar- ket. According to the report, Mexico and Canada remained the U.S. plastics industry’s largest export markets. In 2019, the industry exported $15.3 billion to Mexico and $12.4 billion to Canada, maintaining its largest trade surplus – $9.8 billion – with Mexico. “The 2020 Global Trends report shows that the U.S. plastics industry is a major player in world trade, due to the versatil- ity of the material and high demand for it,” said PLASTICS President and CEO Tony Radoszewski. “Exports generate jobs, and the U.S. plastics industry continues to create jobs for the U.S. economy. For the third year, our Global Plastics RankingTM also provides insights for plastics companies ex- ploring export market opportunities.” Although the report found that the U.S. plastics industry’s trade surplus decreased to $0.4 billion in 2019 from $0.5 bil- lion in 2018, global plastics demand remains solid. The U.S. plastics industry had a $13.7 billion de fi cit with China – the third largest export market of the U.S. plastics industry. How- ever, the U.S. had a $2.5 billion trade surplus with China with resin. China is the world’s largest resin buyer and a large im- porter of U.S.-produced resins. The Global Trends report also explores a broader interna- tional view of plastics, covering production, consumption and more details of important trading partners for the U.S. It also discusses apparent consumption, a broad measure of the domestic market size. U.S. apparent consumption of plastic products grew 1.0% to $232.4 billion in 2019. How- ever, due to U.S. producer prices falling 1.5% in 2019, appar- ent consumption in plastic products grew 2.5%. In 2019, to- tal U.S. plastics industry exports fell 2.9%, and imports were 2.8% lower than in 2018. “Against the backdrop of moderating global economic growth in 2019 and uncertainties related to tariffs and trade, the U.S. plastics industry generated a trade surplus. Although U.S. resin producers continued to enjoy a cost advantage over most foreign producers, U.S. resin exports decreased 2.0% in dollar terms from 2018 to 2019,” noted PLASTICS Chief Econ- omist Perc Pineda, PhD. “Lower trade fi gures are expected this year due mainly to the global economic slowdown, but the trade outlook for 2021 is positive,” Pineda added. Canada andMexicowill continue to be the two largest export markets and are also the top sources of U.S. plastics imports. The manufacturing sector’s supply chain in these countries was strengthened with the passage of the North American Free Trade Agreement (NAFTA). The updated free trade pact, United States Mexico Canada Agreement (USMCA), should further enhance trade among the three countries. Call to Support Jobs, Economic Growth and Environmental Sustainability In a letter to President-elect Joe Biden, PLASTICS President & CEO Tony Radoszewski pledged that the plastic industry will work with the new Administration to support jobs, eco- nomic growth and environmental sustainability, detailing bipartisan solutions for Congress to environmental clean-up, improved recycling infrastructure, and more. Radoszewski also issued the following statement about a plan from non-governmental organizations to ban plas- tic materials and products, as well as to halt investment in new manufacturing facilities, among other efforts to elimi- nate the important U.S. industry: “While we’re focused on working together toward bipartisan solutions, activists are determined to destroy an American industry that employs more than one million workers in the United States. The plan proposed by The Center for Biological Diversity and partner organizations is misguided and aims to eliminate all plastics without taking into consideration the many bene fi ts that plastics provide. That’s shocking, as we are right now wit- nessing the vital role of plastics in combatting the pandemic. People around the world depend on plastic for fresh food, water, and medicine, and other necessities anti-plastics cru- saders take for granted. Modern infrastructure is the solution to all kinds of waste, not just plastic. Our industry is investing in new technologies to build better recycling infrastructure and working with leaders of both parties to develop work- able solutions. Plastics were created for a reason and lifecycle analyses consistently show that, on the whole, plastics are more environmentally bene fi cial than alternative materials – and even more so when they are successfully recycled into new materials.” NewMarket Watch Report Con fi rms Plastic’s Leadership and Utility for Bottling and Packaging A new report released by the Plastics Industry Associa- tion (PLASTICS) explains why plastics, notably Polyethylene Global Trends Report Underscores U.S. Plastics Industry’s Significance in Global Plastics Trades Tony Radoszewski Perc Pineda