Plastics regulation 'could disrupt whole supply chain'

Issues around plastics sustainability could cause major disruption to the petrochemical supply chain, according to analysts.

Plastic waste has come to the forefront for consumers, retailers and brand owners, and the issue could result in greater regulation and bans, according to a study by IHS Markit.

Demand for plastics effects upstream petrochemical demand such as olefins and aromatics, the analysts pointed out. The supply chain is global and can shift dramatically, for example when shale gas came online in the US, it significantly shifted the geographical balance of supply and trade for many base chemicals and plastics, they said.

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