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LyondellBasell (LYB) Gets COTREP Certification for Polybatch NIR

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LyondellBasell Industries N.V. LYB announced that its black color masterbatch Polybatch 73641 near-infrared (NIR) has received the COTREP certification, which represents that plastics containing these masterbatches can be removed using conventional NIR sorting equipment.

The black and dark-colored plastics are difficult to sort in post-consumer waste because they are not visible to optical or NIR detectors that are widely used in material recycling facilities. When these plastics cannot be sorted by color or polymer type, they will enter the waste stream destined for landfill or incineration, or minimize the value and opportunities for re-use of the sorted plastic material.

COTREP — the French Technical Committee for the Recycling of Plastic Packaging, established by Citeo, Elipso and Valorplast — facilitates producers in the development of recyclable plastic packaging solutions to support the circular economy.

LyondellBasell’s Polybatch 73641 NIR is part of the NIR detectable black masterbatch range that enables the categorization of black plastic articles in post-consumer waste streams. Different products are recommended, subject to customer needs and polymer base. In addition to the NIR sortable black series, the company offers a range of NIR sortable colors covering a broad color palette.

Shares of LyondellBasell have increased 2.2% in the past year compared with 6.1% rise of the industry.

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The company, in its last earnings call, stated that it expects the demand for its products to remain strong as global economic activities improve further driven by the rollout of vaccines. It also expects unmet customer demand to boost strength in automotive, construction and other durable goods markets over the next several quarters.

The company expects margins to moderate due to the rising feedstock prices, energy costs and winter seasonality. Nonetheless, it expects to gain from market strengths and tight industry supply.

Zacks Rank & Key Picks

LyondellBasell currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the basic materials space include Albemarle Corporation ALB, Commercial Metals Company CMC and AdvanSix Inc. ASIX.

Albemarle, currently carrying a Zacks Rank #2 (Buy), has an expected earnings growth rate of 49.6% for the current year. The Zacks Consensus Estimate for ALB's earnings for the current year has been revised 9.2% upward in the past 60 days. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Albemarle beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average being 22.1%. ALB has rallied around 33.5% over a year.

Commercial Metals, flaunting a Zacks Rank #1 at present, has a projected earnings growth rate of 10.5% for the current fiscal year. CMC's consensus estimate for the current fiscal year has been revised 6.6% upward in the past 60 days.

Commercial Metals beat the Zacks Consensus Estimate for earnings in three of the last four quarters while missing the same once. It has a trailing four-quarter earnings surprise of roughly 13.1%, on average. CMC has rallied around 63% over a year.

AdvanSix has a projected earnings growth rate of 3.9% for the current year. The Zacks Consensus Estimate for ASIX’s earnings for the current year has been revised 1.6% upward in the past 60 days.

AdvanSix beat the Zacks Consensus Estimate for earnings in each of the trailing four quarters, with the average being 46.9%. ASIX has rallied 100% over a year. It currently carries a Zacks Rank #1.


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