plastic market update - wisconsin dnrmar 01, 2019 · presentation - recycled plastic market update...
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Plastic Market Update
Tonya RandellFebruary 28, 2019WIRMC
What’s in the Curbside Mix?
Fiber: 70%
Other: 25%
Plastic: 5%
45%
30%
15%
10%
5%
PET Bottles HDPE Bottles 3-7 Rigid & Small Rigid Plastic Bulky Plastic Other
Estimated Breakout of Curbside Collected Plastic
Within 3-7 Rigid & Small Rigid Segment:• 33% PP containers• 17% Thermoform containers• 14% Missed PET/HDPE bottles
31%
20%
25%
24%
PET HDPE Non-Bottle Rigids Film
Annual Plastic Survey Data
~ 6 Billion Lbs. in 2016
• More Recycling collects data to see what plastics are being recycled in the US and Canada.
• Data includes post-consumer and post-commercial plastics.
Made possible by:
• Oil Prices Steady
• Export Markets Weak (non-existent?)
• Domestic Market Prices are Down
• Economy is Holding Steady
• Growing Brand Commitments/Long-term
Sustainability Goals
Equals: uncertainty in plastic recycling markets at the
moment, but hopeful future outlook
Current Market Conditions
Plastic Scrap Market Drivers
3- Oil Prices 4- Consumer Demand
2- Material Quality
1- International Policies
International Policies
Prior to 2018,scrap plastic
recyclers depended heavily on
foreign markets:
Canada- 22% exported
US- 28% exported
Europe- 50% exported
International Policies
144M pounds exported in Nov 2018, down 43% over Nov 2017 total of 251M pounds exported.
International Policies
Now there is greater supply
than domestic capacity to sort.
Easy exports stymied
infrastructure investment to
sort mixed plastic bales.
Material Quality
Domestic market standards are
higher, and collection programs
are faced with greater
processing costs.
Material Quality
PET Container Recycling Rate = Room to Grow
Source: Napcor
Rate up to 29.2% in 2017
Material QualityGood education supports the entire system.
Enforcement for chronic bad recyclers may be required.
Programs like WRAP, Plastic Terms & Recycling Partnership toolkits provide free resources.
Posters, Tip Cards, Bill Inserts, and Flyers Available
RecycleYourPlastics.org/termsandtools
PlasticFilmReycling.org/customize
Oil Prices
Not enough supply of PCR at
the right price and quality levels
to compete with virgin resin.
Growing supply of virgin resin
has discouraged some
infrastructure investments
needed to sort and process
scrap plastic to the quality
needed by end users.
0.155 0.155
0.345 0.345
0.64
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0.15 0.150.200.25
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PCR CHDPE PCR CHDPE* PCR NHDPE PCR NHDPE** Virgin HDPE
PCR vs VirginPellet Price & Cost Associated to Process Post-
Consumer Resin (PCR)
Cost to Source Bales or Virgin Pellet Handling & Transport Processing & Yield Loss* Color Sorted
** Food Grade
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Oil
Pri
ce $
/bar
rel
Scra
p P
rice
$/l
b
Historical Scrap Plastic and Crude Oil Prices
Oil $/barrel PET Bottle Average Domestic Delivery CHDPE Domestic Delivery
NHDPE Domestic Delivery All Rigid Plastic Export Delivery Bulky Rigid Plastic Export Delivery
Commercial Clear Film Domestic Delivery Mixed Film Domestic Delivery Curbside Film Export Delivery
3-7 bottles and SMALL Rigid Plastic Export Delivery
Great Recession Green Fence
National Sword
Shale Gas
Revolution
Consumer Demand
Without growth in demand for
PCR, we will continue to see
loss of recycling access for
non-bottle materials.
>130 million pounds of
postconsumer containers and
other rigids are being landfilled,
just in CA.
Loss of Recycling Access
Consumer Demand
More companies will use PCR
when more consumers ask for
it.
Consider the purchases you
make both at home and work,
and not just for plastics.
Buy Recycled Products DirectoryRecycleMorePlastic.org
New Products Added Regularly
Businesses are Consumers, too
Marketplace Tools
New Tools!Recycling Support Activity Info Exchange
Information Compiled:• History & Key Elements of Recycling Market Development• Examples of Public & Private Programs & Tools (in map
view with search filters)• Effective Roles & Strategies — Looking Forward
Recycling Support Activity Info. ExchangeThe Info. Exchange will provide a roadmap to help stakeholders implement appropriate and effective recycling market development programs and projects.
Promotion
Technical Support
Financial Support
Regulation
New Tools! Impact Tracker
New Tools! Generation Tracker Tool
Working with Cascadia and other partner orgs (RILA, NACS) to gather more audit
data from commercial generators
Questions?
Tonya RandellTonya@MoreRecycling.com
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