LYB & Nippon Team Up for Recycling Coating Packaging Barrels

LyondellBasell Industries N.V. LYB and Nippon Paint China recently announced the launch of their partnership to close the loop for recycling coating packaging barrels. The initiative was announced at the China International Import Expo (CIIE). It promotes circularity in China’s coatings industry.

The system establishes a process for mechanically recycling used paint barrels. Under Nippon Paint’s Refresh Service, post-consumer barrels are collected from retail outlets and undergo processing by waste management providers. The plastic components are then sent for further processing to GXLYB to be converted into recycled pellets under LYB’s CirculenRecover brand. These recycled materials, when blended with virgin resins, are used by packaging manufacturers to produce new barrels through injection molding.

This step emphasizes the importance of cross-value-chain collaboration in advancing sustainable solutions. It helps reduce reliance on fossil fuels by increasing the circulation of valuable plastics.

The initiative is an expansion of the ongoing collaborations since 2022. LYB and Nippon Paint have previously collaborated on packaging made with CirculenRecover polymers, and in 2023, they signed an MoU to further this cause.

LYB’s shares have lost 43.9% over the past year compared with the industry’s 25.8% decline.

In the fourth quarter, LyondellBasell anticipates reduced operating rates and year-end seasonality to impact results across most of its businesses. Increased natural gas and feedstock costs are expected to put pressure on integrated polyolefins margins in North America. LYB also sees soft industrial and consumer demand to persist in Europe.

While Industry downtime aided oxyfuels margins during October, seasonally higher costs for feedstocks and reduced octane values are expected to pressure margins for the balance of the fourth quarter. Cost reduction initiatives are also forecast to offset some of the pricing pressures in Advanced Polymer Solutions.

LYB’s Zacks Rank & Key Picks

LYB currently has a Zacks Rank #4 (Sell).

Some better-ranked stocks in the Basic Materials space areKinross Gold Corporation KGC, Fortuna Mining Corp. FSM and Harmony Gold Mining Company Limited HMY. KGC sports a Zacks Rank #1 (Strong Buy), while FSM and HMY carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for KGC’s current-year earnings is pegged at $1.63 per share, indicating a rise of 139.71%. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 17.37%. Its shares have gone up by 156% in the past year.

The Zacks Consensus Estimate for FSM’s current fiscal-year earnings is pegged at 83 cents per share.Its shares have gained 70.2% in the past year.

The Zacks Consensus Estimate for HMY’s 2026 earnings is pegged at $2.66 per share, indicating a rise of 109.45% from year-ago levels. HMY’s shares have gained 78.3% in the past year.

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