The consequences of this situation may include both job losses in European processing and a further widening of the trade deficit in plastics. In addition, lower prices for virgin raw materials continue to discourage the use of recyclate, with a negative effect on demand for recycled material.
Data show that European polymer exports fell by 25.4% between 2020 and 2023, clearly indicating the region’s weakening position in global markets. The structure of trade also confirms the challenges facing the industry.
For Poland, Germany remains the principal intra-EU partner, while outside the EU the most important partners include Ukraine (exports of plastics in primary forms) and South Korea (imports), as well as the United Kingdom (exports of plastic products) and China (imports). Notably, China is now Europe’s main partner in imports of plastic products, accounting for 32.6% of the total volume in 2023.
Meanwhile, there is no shortage of raw materials for plastics production – whether derived from petroleum or from alternative sources, including innovative technologies based on CO₂ utilisation. Contrary to earlier forecasts warning of rapid depletion, the availability of base raw materials is not currently the main constraint on industry development. Increasingly decisive are legal regulations, price competition and the capacity to implement modern recycling technologies.
Energy costs and the risk of losing competitiveness
The plastics industry is relatively energy-intensive – particularly in the production of raw materials and in recycling, while in processing energy also represents a significant cost factor. High and volatile energy prices in EU countries substantially increase operating costs. Coupled with the potential introduction of protective tariffs on finished goods from Asia or other external markets, this creates the risk of trade wars and retaliatory measures, which could further reduce the profitability of European exports.
The example of US–EU trade relations, where tariff increases were met with immediate retaliation, demonstrates that protectionism does not always bring the desired results.
“These tariffs could trigger a chain reaction, leading to higher raw material prices, reduced competitiveness and job losses across the European Union. Such measures run counter to Europe’s industrial and environmental objectives,” stresses Paolo Bochicchio, Managing Director of EuPC.
According to the European Commission, the tariff rates are as follows:
- Imports from Egypt: 74.2% to 100.1%
- Imports from the US: 58% to 77%
The measures are intended to protect the EU PVC industry, which provides employment for around 4,000 people in seven Member States. Without intervention, the market could suffer further collapse and the closure of production plants within the EU.
In protecting the market, however, it is important to safeguard export opportunities, without which many companies in the processing sector will not be able to survive. To remain competitive, the European – and therefore also the Polish – plastics industry needs a coherent and predictable regulatory framework, a rational approach to recycling, and tangible measures to reduce energy costs.
Without these, Europe risks not only losing production to non-EU markets but also deepening its dependence on imports of raw materials and products – a development which, in the longer term, could weaken the economic security of the entire Union.
Robert Szyman, Managing Director of the Polish Union of Plastics Converters (PZPTS)
