jerry powell 2018... · 2018. 12. 21. · the trump administration’s plan to hit chinese goods...
TRANSCRIPT
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Current plastics recycling market issues
Jerry PowellResource RecyclingPortland, Oregon
www.resource-recycling.com
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What we’ll look at today
I’ll first offer a few remarks about how plastics recycling markets might be different from other materials, then I’ll provide my firm’s assessment of critical market issues, plus provide a few recommendations.
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Primer: Mixed versus single-resin
Many in the plastics recycling industry would love to see a larger market for mixed resins. Other recycling industries have an advantage, including ferrous scrap (shredder grades) and recovered fiber (mixed-paper grades). In plastics, prime resin is altered in many ways to make plastic products, and these additions and alterations affect recycling.
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Common plastic additivesAntimicrobials Fragrances
Antioxidants Heat stabilizers
Antistatic agents Impact modifiers
Blowing agents Light stabilizers
External lubricants Pigments
Fillers & extenders Plasticizers
Flame retardants Reinforcements
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Primer: Forgiving products
On the plus side, recovered plastics can be used to make what are termed “forgiving products,” such as pipe, gardening products and strapping. For instance, makers of these products don’t purchase recovered plastics with a tight requirement in terms of color.
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Current market issues
With the exception of mixed rigids and 3-7 containers, recent recovered plastics pricing has been within a small band.
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HDPE milk jugbale prices
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PET bale prices
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Current market issues
Resin pricing is closely linked with the value of oil (especially for PET) and the price of natural gas (especially for HDPE). The booming shale oil and gas recovery efforts in the U.S. have led analysts to suggest resin pricing will remain lower than historic averages for the next several years.
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The value of oil versus recovered plastics (2006-2017)
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Current market issues
For the long term, cheap feedstocks have resulted in a number of large petrochemical and resin production facilities, especially in Texas.
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Recommendation No. 1: Monitor the infrastructure bill
Federal initiatives to improve the nation’s infrastructure will aid the plastics recycling industry. In particular, approval of HR 5310 will help boost sales of plastic pipe.
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Recommendation No. 2: Monitor plastic sorting developments
Plastics can be identified and sorted in a number of ways. When I first entered this field, we used very crude methods. All you needed was a hot nail, a flame and your nose.
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RESIN ODOROO FLAME COLORCOLOR
ABS ACRID YELLOW, BLUE EDGE
NYLON BURNT HAIR OR WOOL
BLUE, YELLOW TIP
POLYETHYLENE PARAFIN BLUE, YELLOW TIP
POLYCARBONATE SWEET SMELL ORANGE
POLYPROPYLENE ACRID YELLOW
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Recommendation No. 2: Monitor plastic sorting developments
Now it’s more sophisticated. With demand for PCR generally exceeding collections, and with sizable amounts of mixed plastics being collected, we’ll see more PRFs (plastics recovery facilities). For this region, we’re hopeful of the reopening of the Dundalk, Maryland plant.
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Recommendation No. 3: Expand collections
Brand-owner initiatives in plastics recycling now exceed new actions by state and local governments. We need to fill recycling carts with more recyclable plastics.
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Recommendation No. 4: Be wary of more tariffs
The Trump Administration’s plan to hit Chinese goods with steep tariffs may result in weaker plastics recycling markets. Even with the National Sword, we continue to send large volumes of sorted plastics to China. If exports fall off sharply, the resulting glut in U.S. bales may force some communities to abandon plastics collections altogether.
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