us exports more than 40 million tons of scrap to 160
TRANSCRIPT
US Exports• US exports more than 40 million tons of scrap
to 160 countries every year.• $25 million/day of scrap exports were placed
into container ships in 2013.• Five key overseas markets from
the West Coast in 2014:– China = $4.2 billion– Taiwan = $1.1 billion– South Korea = $1.1 billion– Japan = $402 million– Thailand = $200 million
Source: American Recycler & ISRI – May, 2015
DDGS Distiller Dried Grains w/ SolublesOne commodity of many that affects
availability of overseas containers
11 million tons exported to 45 countries in 2014.
Top 5 countries as follows:China = 5.7 million tonsMexico = 1.3 million tonsKorea = 0.3 million tonsVietnam = 0.3 million tonsJapan = 0.3 million tons
Availability of Import / Export Sea Ports
• 29 Sea Ports on US West Coast, represented by one Longshoreman Union
• US Congress considering a new law to address a warning system regarding Port Work Slowdowns
China’s Green Fence
International Organization for StandardizationISO 9000/9001 Standards
Companies that ship materials to Chinamust be ISO certified!
Green Fence Parameters
• No Prohibitives– Radioactive– Explosives– Hazardous Wastes
National Standard of the People’s Republic of ChinaGB 16487.4-2005
Green Fence ParametersCarried Wastes‘restricted’ and shall not exceed 0.01% by weight and includes the following:* Asbestos waste* Burnt or partly burnt waste paper* Sensitization material waste* Sealed containers* Other hazardous wastes mixed into waste paper during the production, collection and transportation processes
Green Fence Parameters
• Carried Wastes (0.01 % in perspective)If a bale of newspaper weighs 1800 lbs,Then ‘Carried Wastes’ cannot exceed(0.0001) x 1800 lbs = 0.18 lbs
less than 3 ouncesTherefore; for all practical purposes,there can be no ‘Carried Waste’.
Green Fence Parameters• Other Carried Wastes (Residuals / Out-throws)• Referenced in GB16487.4-2005; 4.5 ‘restricted’ and shall
not exceed 1.5% by weight, includes the following:• Waste wood• Waste metal• Waste glass• Waste plastic• Waste rubber• Waste sorbent• Wall paper• Waxed paper• Wax dipped paper
• Carbon paper, Etc.
Green Fence Parameters• Other Carried Wastes (1.5% in perspective)If a bale of newspaper weighs 1800 lbs,Then ‘Other Carried Wastes’ cannot exceed(0.015) x 1800 lbs = 27 lbs
(400 aluminum cans + 600 single serve PET bottles)
While this may technically meet Chinese import regulatory % requirements, it likely will not be acceptable to the paper mill or to anyone else based on a visual inspection.
MeasurementOther Carried Wastefrom 1800 lb newspaper bale 0.65Lb = 0.036%
Paper Generated & Recovered• 2004
– 102 million tons of paper generated– 50 million tons recovered– 49% recovered
• 2014– 78 million tons of paper generated– 52 million tons recovered– 65% recovered
76% of US Paper Mills rely on recovered paper fiberRecovered paper is exported to 85 countries~40% of recovered paper exported to China in 2013Sources:American Forest & Paper AssociationMSW Management / May, 2015
PaperRecycles.orgTotal US Recovered Paper
Newspaper
Chicago TribuneNewspaper Circulation
0
100000
200000
300000
400000
500000
600000
700000654000
541000
440000 455000
CIRCULATION 1998 2009 2013 2014
PaperRecycles.orgUS ONP (Newspaper) Recovery
ISRI 2013 Guidelines for Paper StockDomestic & Export Transactions - Newspaper
• News (#7 ONP)Sorted, fresh newspapers, containing not more than a normal percentage of rotogravure and colored sections. May also include magazines.• Prohibitives: < 1%• Outthrows < 3%• Other Papers < 20%
• News (#8 ONP)Sorted, fresh newspapers, containing not more than a normal percentage of rotogravure and colored sections. Relatively free of magazines.• Prohibitives: < 1%• Outthrows < 2%• Other Papers < 10%
ONP OBM Market Index Prices
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
OBM #8 ONP Domestic
OBM #8 ONP Export
$/Ton
Source: PPI-OBM Official Board Markets - Midwest
Cardboard
Corrugated End Use Markets
Industrial & Machinery
22%
Processed Foods22%
Drinks13%
Appliances & Electrical
Goods12%
Durable Goods & Clothing
10%
Non Food Consumables
10%
Fresh Foods/Produce
6% Other5%
ISRI 2013 Guidelines for Paper StockDomestic & Export Transactions - Cardboard• Old Corrugated
Containers(#11 OCC)
Corrugated containers having liners of either test liner or kraft.
• Prohibitives < 1%• Outthrows < 5%
• Double Sorted Old Corrugated Containers(#11 DS OCC)
Generated from supermarkets & commercial facilities having liners of either test liner or kraft, free of boxboard, off-shore corrugated, plastic, wax.• Prohibitives < ½ of 1%• Outthrows < 2%
OCC OBM Market Index Prices
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
$200.00
OBM #11 OCC Domestic
OBM #11 OCC Export
$/Ton
Source: PPI-OBM Official Board Markets - Midwest
Mixed Paper
ISRI 2013 Guidelines for Paper StockDomestic & Export Transactions – Mixed Paper
• Soft Mixed Paper (#2)Clean, sorted mixture of various qualities of paper not limited as to type of fiber content.• Prohibitives < 1%• Outthrows < 5%
• Hard Mixed Paper (#3)Clean, sorted mixture of various qualities of paper containing less than 10% groundwood.• Prohibitives < ½ of 1%• Outthrows < 3%
Mixed Paper OBM Market Index Prices
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00OBM #2 MP Domestic
OBM #12 MP Export
Source: PPI-OBM Official Board Markets - Midwest
Plastics Exports• Green Fence driven by:– Government Concerns of pollution from imports of low
quality scrap– Government desires to see better quality of recycled
materials to help local industries to upgrade• Green Fence enforcement includes:
• Port Inspections• Point of Origin Inspections• Preventing illegal buying, selling and/or renting of
government licenses
Source: Plastic News – May 19, 2015Steven Wong, Executive President of Beijing-based China Scrap Plastics Association
Plastics Imports To China
• 2012 = 8.88 million metric tons• 2013 = 7.88 million metric tons• 2014 = 8.26 million metric tonsReduction from 2012 to 2013 attributed to Green Fence initiatives
Source: Plastic News - May 18, 2015
Plastic Imports to China
• Waste Plastic entered into Chinese ports in 2014:– Guangdong – 37%– Shanghai & Ningbo – 28%– Tianjin & Qingdao – 22%– Fuzhou & Xiamen – 13%
Source: Plastic News - May 18, 2015
US Shale & Fracking Gas to Plastics
• The lower cost availability of continental natural gas may contribute to more feedstock for the US manufacture of plastics.
• Where will the manufactured plastics be recycled after consumer use?
Plastic Resin Prices
• Resin prices remain unpredictable!• As Frank Sinatra would sing:
– Riding High in April,– Shot Down in May.– Back on top come June?
Source: Plastic News – April 27, 2015
Secondary Materials Pricing . ComMidwest Region
$0.0000
$0.1000
$0.2000
$0.3000
$0.4000
$0.5000
$0.6000O
ct-9
7M
ar-9
8A
ug-9
8Ja
n-99
Jun-
99N
ov-9
9A
pr-0
0Se
p-00
Feb-
01Ju
l-01
Dec
-01
May
-02
Oct
-02
Mar
-03
Aug
-03
Jan-
04Ju
n-04
Nov
-04
Apr
-05
Sep-
05Fe
b-06
Jul-0
6D
ec-0
6M
ay-0
7O
ct-0
7M
ar-0
8A
ug-0
8Ja
n-09
Jun-
09N
ov-0
9A
pr-1
0Se
p-10
Feb-
11Ju
l-11
Dec
-11
May
-12
Oct
-12
Mar
-13
Aug
-13
Jan-
14Ju
n-14
Nov
-14
Apr
-15
HDPE-N $/LbWorld Recession
No prediction of world oil price drop
Secondary Materials Pricing . ComMidwest Region
$0.0000
$0.0500
$0.1000
$0.1500
$0.2000
$0.2500
$0.3000
$0.3500
$0.4000O
ct-9
7M
ar-9
8A
ug-9
8Ja
n-99
Jun-
99N
ov-9
9A
pr-0
0Se
p-00
Feb-
01Ju
l-01
Dec
-01
May
-02
Oct
-02
Mar
-03
Aug
-03
Jan-
04Ju
n-04
Nov
-04
Apr
-05
Sep-
05Fe
b-06
Jul-0
6D
ec-0
6M
ay-0
7O
ct-0
7M
ar-0
8A
ug-0
8Ja
n-09
Jun-
09N
ov-0
9A
pr-1
0Se
p-10
Feb-
11Ju
l-11
Dec
-11
May
-12
Oct
-12
Mar
-13
Aug
-13
Jan-
14Ju
n-14
Nov
-14
Apr
-15
World RecessionHDPE-C $/Lb
Secondary Materials Pricing . ComMidwest Region
$0.0000
$0.0500
$0.1000
$0.1500
$0.2000
$0.2500
$0.3000
$0.3500
$0.4000O
ct-9
7Fe
b-98
Jun-
98O
ct-9
8Fe
b-99
Jun-
99O
ct-9
9Fe
b-00
Jun-
00O
ct-0
0Fe
b-01
Jun-
01O
ct-0
1Fe
b-02
Jun-
02O
ct-0
2Fe
b-03
Jun-
03O
ct-0
3Fe
b-04
Jun-
04O
ct-0
4Fe
b-05
Jun-
05O
ct-0
5Fe
b-06
Jun-
06O
ct-0
6Fe
b-07
Jun-
07O
ct-0
7Fe
b-08
Jun-
08O
ct-0
8Fe
b-09
Jun-
09O
ct-0
9Fe
b-10
Jun-
10O
ct-1
0Fe
b-11
Jun-
11O
ct-1
1Fe
b-12
Jun-
12O
ct-1
2Fe
b-13
Jun-
13O
ct-1
3Fe
b-14
Jun-
14O
ct-1
4Fe
b-15
World Recession
PETM $/Lb
Secondary Materials Pricing . ComMidwest Region
$0.000
$0.200
$0.400
$0.600
$0.800
$1.000
$1.200Ja
n-06
Apr
-06
Jul-0
6
Oct
-06
Jan-
07
Apr
-07
Jul-0
7
Oct
-07
Jan-
08
Apr
-08
Jul-0
8
Oct
-08
Jan-
09
Apr
-09
Jul-0
9
Oct
-09
Jan-
10
Apr
-10
Jul-1
0
Oct
-10
Jan-
11
Apr
-11
Jul-1
1
Oct
-11
Jan-
12
Apr
-12
Jul-1
2
Oct
-12
Jan-
13
Apr
-13
Jul-1
3
Oct
-13
Jan-
14
Apr
-14
Jul-1
4
Oct
-14
Jan-
15
Apr
-15
World Recession
UBCs $/LB
Secondary Materials Pricing . ComMidwest Region
$0.00
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00Ja
n-06
Apr
-06
Jul-0
6
Oct
-06
Jan-
07
Apr
-07
Jul-0
7
Oct
-07
Jan-
08
Apr
-08
Jul-0
8
Oct
-08
Jan-
09
Apr
-09
Jul-0
9
Oct
-09
Jan-
10
Apr
-10
Jul-1
0
Oct
-10
Jan-
11
Apr
-11
Jul-1
1
Oct
-11
Jan-
12
Apr
-12
Jul-1
2
Oct
-12
Jan-
13
Apr
-13
Jul-1
3
Oct
-13
Jan-
14
Apr
-14
Jul-1
4
Oct
-14
Jan-
15
Apr
-15
World Recession
Steel Cans $/Ton
Secondary Materials Pricing . ComMidwest Region
-$15
-$10
-$5
$0
$5
$10
$15
$20
$25
$30
$35A
pr-0
5Ju
l-05
Oct
-05
Jan-
06A
pr-0
6Ju
l-06
Oct
-06
Jan-
07A
pr-0
7Ju
l-07
Oct
-07
Jan-
08A
pr-0
8Ju
l-08
Oct
-08
Jan-
09A
pr-0
9Ju
l-09
Oct
-09
Jan-
10A
pr-1
0Ju
l-10
Oct
-10
Jan-
11A
pr-1
1Ju
l-11
Oct
-11
Jan-
12A
pr-1
2Ju
l-12
Oct
-12
Jan-
13A
pr-1
3Ju
l-13
Oct
-13
Jan-
14A
pr-1
4Ju
l-14
Oct
-14
Jan-
15A
pr-1
5
Clear Glass $/Ton
Brown Glass $/Ton
Green Glass$/Ton
Mix Glass$/Ton
World Recession
How Contamination Affects Value
$0.00
$10.00
$20.00
$30.00
$40.00
$50.00
$60.00
$70.00
$80.00
16% Contamination 2% Contamination
Commodity Value of Processed Single Stream
4/1/2015
Higher Contamination =Higher Processing Cost and
Lower Net Commodities Value
($80.00)
($60.00)
($40.00)
($20.00)
$0.00
$20.00
$40.00
$60.00
$80.00
2% Contamination 12% Contamination 16% Contamination
Commodity Value Process Cost Net Value
Value of Residential Single Stream
($40.00)
($20.00)
$0.00
$20.00
$40.00
$60.00
$80.00
$100.00Ap
r-05
Jul-0
5O
ct-0
5Ja
n-06
Apr-
06Ju
l-06
Oct
-06
Jan-
07Ap
r-07
Jul-0
7O
ct-0
7Ja
n-08
Apr-
08Ju
l-08
Oct
-08
Jan-
09Ap
r-09
Jul-0
9O
ct-0
9Ja
n-10
Apr-
10Ju
l-10
Oct
-10
Jan-
11Ap
r-11
Jul-1
1O
ct-1
1Ja
n-12
Apr-
12Ju
l-12
Oct
-12
Jan-
13Ap
r-13
Jul-1
3O
ct-1
3Ja
n-14
Apr-
14Ju
l-14
Oct
-14
Jan-
15Ap
r-15
City of Chicago Residential Single StreamValue Tipped At Local Transfer Station - $/Ton
No movement at any price!
Recent Harris Survey
• 86% of Americans would like manufacturers to design products that can easily be disassembled for recycling.
• 62% say if a product is not easy or convenient to recycle, they won’t.
• 87% are not willing to pay more for having a product more easy to recycle.
Government Advisory AssociatesResidential Single Stream
• Average Residual Rate = 16.6%• Some as high as 25 to 30%
Based on a study of 35 curbside single stream programs.
Source: Resource Recycling / April, 2015
Aseptic Packaging73% paper, 23% plastic, 4% aluminum
75% by weight is recycled typically for tissue mills. (Source: RecyclingToday, May, 2014)
Flexible Packaging / Pouches
Kraft Foods (CapriSun) being targeted by environmental groups for limited recycling of food & beverage pouches.
Cup Recycling
• MicroGreen Polymers Inc (Incycle Brand) recycled cup maker shuts down losing production of 400,000 to 2,000,000 cups per day. Cups made with minimum 50% recycled PET content.
• Dunkin Donuts PP cup?
Source: Plastic News – April 20, 2015
K-Cup• How guilty should you feel about that K-Cup?
9.8 billion cups sold last year= 140,434 tons of waste
However, the US packs landfills every year with 34.7 million tons of food waste8.8 million tons of clothing11.5 million tons of furniture
Every cup counts, but every sofa counts more.Source: Fortune Magazine, April, 2015