Generation and demand for plastic scrap remains relatively steady; however, pricing is declining as fall advances.
"We saw a dip in production this past month, but it is too early to view it as a trend," a reprocessor based in the Midwest says. "For the most part, scrap generation is steady."
While he says demand is fair to steady, prices are falling.
"The biggest reason for this is because of the 'importation' restrictions being enforced by the Chinese government."
Specifically, lower-grades of plastic scrap are restricted from entering China. The reprocessor describes such material as "funky" scrap. "If you have something with adhesive, it may take more calls than before," he says. "If you have any laminated materials, they may not be exportable. Anything that resembles medical scrap is difficult. Understand, I am talking post-industrial metal scrap." He adds that importers claim this material looks too much like dirty medical scrap, even though the material comes from molders.
Index is based on December 1980 average prices as 100; Source: U.S. Bureau of Labor Statistics |
The material in question is not necessarily being restricted from entry once it arrives in China but during CCIC (China Certification and Inspection) Group inspections, which can take place at a U.S. port, a Chinese port or at the generator's location. According to Chinese regulations, pre-shipment inspections of scrap material are required in an effort to prevent hazardous materials from entering the country.
Domestically, companies such as Revolution Bag are still providing homes for many post-consumer plastics. David Rives of Revolution Bag, Little Rock, Ark., addressed attendees of the Arkansas Recycling Coalition's 21st Annual Conference & Trade Show, Sept. 19-21, in Eureka Springs, Ark. His company uses post-consumer recycled-content resins to produce trash bags designed for hospitals, schools and other institutional users.
Rives says Revolution Bag's line of recycled-content products can help buyers earn LEED (Leadership in Energy and Environmental Design) points and meet state, local or federal recycled-content purchasing guidelines or mandates.
Revolution Bag is a subsidiary of Delta Plastics, a Little Rock-based company that collects and processes plastic irrigation tubing and other agricultural plastic scrap to manufacture a wide variety of finished products. According to the company's website, www.revolutionbag.com, its supply of post-consumer materials is "a virtually endless quantity of consistent, high-quality raw materials for recycling provided by our parent company Delta Plastics. This resource is coupled with patented washing and processing technology that enables us to take this post-consumer material which would otherwise end up a landfill and produce high quality bags at competitive prices."
(Additional information about secondary plastics, including breaking news and consuming industry reports, is available at www.RecyclingToday.com.)
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