Trump’s order to return to plastic straws expected to spur polypropylene demand, raises sustainability concerns

US President Donald Trump's executive order to return to plastic straws and halt the federal purchasing of paper straws is expected to boost demand for polypropylene while raising concerns about a broader rollback of sustainability measures.

"We're going back to plastic straws," Trump said on Jan. 10, signaling a sharp move away from the Biden administration's strategy to phase out federal procurement of single-use plastics in food service, events, and packaging by 2027, and from all federal operations by 2035.

The policy is expected to benefit virgin polymers like polypropylene, a resin widely used in food-contact applications, including single-use plastic straws.

"Straws are just the beginning—'Back to Plastic' is a movement we should all get behind," PLASTICS President and CEO Matt Seaholm said in a Feb. 7 statement.

PP market participants anticipate a rise in demand and an increase in domestic consumption of PP following the announcement. A PP market participant estimated the policy could drive an additional 200,000 mt/year of demand.

"This sends a strong signal to use PP in more products," a PP distributor said.

Platts assessed spot export homopolymer polypropylene at $1,091/mt FAS Houston or 45 cents/lb rail car basis on Feb. 12.

However, recycled plastics stakeholders fear this is the first step in a larger push toward virgin polymers, undermining sustainability initiatives and corporate commitments to recycled content.

Last year, 20 U.S. Senate Republicans urged the Biden administration not to support the UN plastic treaty, the main concern being the limitation of virgin plastic production. The collapse of UN plastic treaty negotiations, mainly due to disputes over capping plastic output, has added to industry uncertainty.

Shortly after, Coca-Cola scaled back its 2035 recycling targets, delaying an expected increase in global demand for at least 400,000 mt/year of recycled PET resin, according to S&P Global Commodity Insights.

"Trump is starting off with straws, but if he moves onto film, that is when we'll see larger implications," a recycled market participant said.

Many market participants have been fearing a market correction for recycled polymers like recycled HDPE natural, as it is becoming too expensive for companies to procure for their sustainability commitments. Additionally, recyclers are worried other companies will push back their sustainability commitments, reducing the use of post-consumer resin in their products.

"My concern is that sustainability goals can be challenging when recycled content costs more than virgin material. While many corporations express a desire to support sustainability, they often struggle to uphold that commitment when it comes with a higher price tag," another recycled market participant added.

Platts assessed post-consumer HDPE Natural bales at 96 cents/lb FOB Chicago on Feb.12.