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The voice of plastics recycling Today’s Presentation: Domestic Plastic Reclaimers Act in Response to China’s Green Fence

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The voice of plastics recycling

Today’s Presentation:

Domestic Plastic ReclaimersAct in Response to

China’s Green Fence

The voice of plastics recycling

APR Web Seminars

• All presentations are available todownload on the APR Website

• www.plasticsrecycling.org• Market Development – Web

Seminars• Email notification

The voice of plastics recycling

Today’s SpeakersKara PochiroAPR CommunicationsDirector

Steve AlexanderAPR Executive Director

Patty MoorePresident, MooreRecycling Associates

Liz BedardAPR Rigid PlasticsRecycling ProgramDirector

* Thank you to Jerry Powell, Resource Recycling / Plastics RecyclingUpdate, for providing valuable information about the Green Fence. *

The voice of plastics recycling

WHO IS APR?

• Trade association representing 95%+pcr processing capacity in NorthAmerica

• The Voice of Plastics Recycling™

The voice of plastics recycling

APR Membership

125 Member Companies Including:• Recyclers/Reclaimers• Consumer Product Companies• Resin Producers• Packaging Suppliers• Equipment & Technology Suppliers• Design and testing laboratories• End users of postconsumer resin

The voice of plastics recycling

Example APR Programs• APR Design for Recyclability ™

Guidelines• Model bale specifications• Test methods to assess compatibility• Recognition for innovators• Rigid Plastic Recycling Program• Grocery Store Project• Rate reports

Today’s key questions

-- What does the fence do?-- Why was it installed?-- What has been its effect?-- Will it continue?

What does the fence do?-- Huge increase in customs

inspections (now inspectingnearly all containers fromlicensees)

-- Custom officials are imposing tightcontamination standards

What does the fence do?-- Rejected shipments are charged

port demurrage fees until thecontainers can be sent back

-- Some export licenses have beenrescinded

Why was the fence installed?The leadership’s views reflect a rise inChinese citizen interest, due in part tothe Internet and social media. Thisincludes worker safety concerns andawareness of the negative effect ofsmall recycling enterprises(workshops).

Why was the fence installed?In addition, custom officials werefinding wide misuse of the currentAQSIQ export licensing system, withlicenses being sold or licenseesrunning scrap auctions.

Dramatic change was needed.

What has been the effectof the fence?

Nearly 300 importers have had theirlicenses suspended. Some of thesefirms had loads sitting on the piers oron China-bound container ships.

What has been the effectof the fence?

The fence has generally not affectedhigh-value recyclables (nonferrousmetals) or commercially generatedmaterials (warehouse OCC). But ithas a major effect on markets forother materials.

The effect on exportsMixed Paper

Mixed Plastics

What’s green and has asilver lining?

• Will help increase bale quality.• Can help build domestic markets• U.S. has processing capacity: Scott Saunders, KW

Plastics: “This is great news for Americanprocessors. I don't buy the argument that MRFshave nowhere to sell material. There are lots ofready recyclers here in the U.S.” KW is America’slargest HDPE reclaimer.

The voice of plastics recycling

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

Liz Bedard, Director

The voice of plastics recycling

APR Rigid Plastics Recycling Program

APR Rigid Plastics Recycling Program -membership committee representing

36 rigid plastic stakeholders –

generators, collectors recyclers, reclaimers brand names companies resin producers

public policy makers

Goal – increase plastic recycling beyond bottles

The voice of plastics recycling

APR Rigid Plastics Recycling Program

The voice of plastics recycling

APR Rigid Plastics Recycling Program

Sort for Value MRF Project National Rigid Plastics Bale Audit and Supply Analysis APR Grocery Store Rigid Plastic Recycling Project

Bale Definition Subcommittee

Recycled Resins Subcommittee ”Fit for Use” Project Design for Recyclability

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

New model bale specifications

Domestic market information

Sort for Value MRF Project

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

Ease communication between –

**bale generators and**plastic reclaimers

by developing model bale specification that theindustry accepts and uses.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

APR has 4 non-bottle rigid plastic model bale specification –

1. All Rigids (with or without Bulky Rigids)

2. Pre-Picked (with or without Bulky Rigids)

3. Tubs & Lids (with or without Bulky Rigids)

4. Bulky Rigids

The voice of plastics recycling

APR Rigid Plastics Recycling Program

PET/HDPEBottles

#3-7Bottles

Non-bottleContainers

1.All Rigid Plastics (with or without Bulky) X X X

2. Pre-Picked Rigids (with or without Bulky) X X

3. Tubs & Lids (with or without Bulky) HDPE only PE and PPonly

PE and PPonly

4. Bulky Rigids

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

Opening paragraph…..”not meant to replace the specifications ofindividual buyers, many of whom may have different allowables’ in

terms of contents and bale sizes. Rather, it is meant to provide abenchmark to suppliers.”

“ACCEPTABLE LEVELS OF CONTAMINANTS: ……..

CONTAMINANTS NOT ACCEPTABLE AT ANY LEVEL:……..

“IMPORTANT: Any plastic container that previously contained hazardousor potentially hazardous material should be strictly avoided. …..

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

Bale Size/Minimum Shipping Weight: Approximately 30"x 42"x 48" or 30"x48"x 60". Bale sizes should allow a minimum of 35,000 pounds ….

Bale Wire: Bales should be held together with 10-12 gauge, noncorrosivegalvanized metal wire, with all bale wires wrapped in one direction (nocrisscrossing or double strapping). …….

Storage: Bales should be stored, with the bottom bale on a pallet ………notbe stored outdoors uncovered for a period exceeding four (4) weeks toprevent UV degradation from direct sunlight and moisturecontamination.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

PET/HDPEBottles

#3-7Bottles

Non-bottle

Containers

1.All Rigid Plastics(with or without Bulky)

X X X

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“All Rigid Plastic” (Formerly known as #1-7 with Bulky)

Rigid plastic generated in a positive sort from a curbside, drop-off, or otherpublic or private recycling program that does not separately sort any plasticbottles. Bales consist of :

• all plastic bottles— no bottles should be removed from the mix

• household containers - cups, trays, clamshells, food tubs and pots

• bulky rigid plastic - drums, crates, buckets, baskets, totes, lawn furniture

• VARIATION – “All Rigid Plastic - No Bulky”• Bulky rigid plastic, greater than 5 gallons, should be avoided• Bales should consist of 65% bottles

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“ALL RIGIDS” - [Formerly known as #3-7 with Bulky]

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

PET/HDPEBottles

#3-7Bottles

Non-bottle

Containers

2. Pre-Picked Rigids(with or without Bulky)

X X

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“PRE-PICKED”[Formerly known as #3-7 with Bulky]

Rigid plastic items generated in a positive sort from a curbside, drop-off, or otherpublic or private recycling programs from which the PET and HDPE bottles havebeen removed.

• Thermoform packaging, Cups, Trays, Clamshells, Food tubs and pots• All large rigid plastics, primarily PE and PP• Metal, as typically found in toys or bucket handles should be removed when possible.• Plastics items from construction or demolition should not be include

VARIATION – “Pre-Picked No Bulky”Bulky rigid plastic, greater than 5 gallons, should be avoided ( drums, crates, buckets, toys)

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“PRE-PICKED” - [Formerly known as #3-7 with Bulky]

NOBottles

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

PET/HDPEBottles

#3-7Bottles

Non-bottle

Containers

3. Tubs & Lids(with or without Bulky) HDPE only PE and

PP onlyPE and PP

only

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“Tubs & Lids”

• Any whole container, with a #2 HDPE, #5 PP, and/or #4 LDPE resin codes,created through a positive sort from curbside, drop-off or other public orprivate recycling collection program.

• Tubs are containers that have a neck or mouth similar in size to its base.• Lids are caps for tubs that have a fastening feature other than threads.• Examples include: yogurt cups, margarine tubs, ice cream tubs, cold drink

cups (transparent, cold serve). Nursery pots are not acceptable.

VARIATION – “Tubs & Lids with Bulky Rigids”Please refer to APR’s “Bulky Rigids” model bale specs for additional allowablematerial.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“Tubs & Lids”

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“Bulky Rigids”

• Any large rigid #2 HDPE and/or #5 PP plastic bulky items, createdthrough a positive sort from curbside, drop-off or other public, private,residential and/or commercial recycling collection program. Examplesinclude: crates, buckets, baskets, totes, and lawn furniture.

• Buckets/pails with metal handles are acceptable.• This bale does not contain mixed #1-7 bottles/containers, toys with

metal, drums (either HMW or 55 gallons) or PVC/vinyl.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

“Bulky Rigids”

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

APR/ISRI Bale Specs Task Force

APR is a trade association representing companies who acquire,reprocess and sell the output of more than 90 percent of the post-consumer plastic processing capacity in North America.

ISRI is a trade association representing manufacturers and processors,brokers and industrial consumers of scrap commodities.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

APR/ISRI Bale Specs Task Force

Model Bale Specifications

Tubs & Lids

Any whole container, with a #5 PP, #2 HDPE and/or #4 LDPE resin codes, generatedthrough a positive sort from curbside, drop-off or other public or private recyclingcollection program. Tubs are containers that have a neck or mouth similar in size to itsbase. Lids are caps for tubs that have a fastening feature other than threads.Examples include: yogurt cups, margarine tubs, ice cream tubs, cold drink cups(transparent, cold serve). Nursery pots are not allowed.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

APR/ISRI Bale Specs Task Force

Scrap Specifications

Tubs & Lids

Any whole container with a #2 HDPE, #5 PP, and/or #4 LDPE resin code generated from apositive-sort curbside, drop‐off, or other public or private recycling collectionprogram. Tubs are containers that have a neck or mouth similar in size to its base.Lids are caps for tubs that have a fastening feature other than threads. Examplesinclude yogurt cups, margarine tubs, ice cream tubs, and cold drink cups (transparent,cold serve). Nursery pots are not allowed.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

APR/ISRI Bale Specs Task Force

Task Force has mutually agreed on bale descriptions forTubs & Lids and Bulky Rigids.

Current work includes:PET Thermoforms

HMW DrumsInjection HDPE

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

China’s “Green Fence” caused MRFs to search for domesticmarkets for non-bottle rigids.

Survey of all APR full members……

Who purchases non-bottle rigid plastic bales as defined byAPR’s accepted or proposed model bale specs?

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

Twenty APR members responded to the survey.

Of the twenty respondents,• 7 purchase bales based on the APR “Bulky Rigids” model bale specs,• 5 purchase bales based on the APR “Tubs & Lids” model bale specs• 2 purchase bales based on APR “Prepicked” and “All Rigids” model bale specs.

In addition, 2 APR members purchase “HDPE Only Bulky Rigids”and “PP Only Tubs & Lids”.

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

MARKETS FOR RECYCLABLE PLASTICS

Association of Postconsumer Plastic Recyclers

INDEX OF MATERIALS PURCHASED BY APR MEMBERSMember Listing by Commodity

For more information visit www.plastics recycling.org

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

MARKETS FOR RECYCLABLE PLASTICS

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

Markets for Recyclable Plastics

The voice of plastics recycling

Reclaimer’s Act in Response toChina’s Green Fence

Liz Bedard, DirectorAPR Rigid Plastics Recycling Program

1001 G Street, NWWashington, DC [email protected]

The voice of plastics recycling

Plastic Recyclingin Light of

The Green Fence

Patty Moore

Green Fence: China Visit

Consensus: it is and will remain too risky &too costly to import unprocessed scrap

Green Fence may fade but we are not goingback

US Material going export will be moreclosely scrutinized: producers of low qualitywill be paid significantly less

PET Bottles

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

1,400,000,000

1,600,000,000

1,800,000,000

2,000,000,000

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Domestic Consumption Net Exports

1999 = 24%, 2002 = 35%, 2005 = 42%, 2008 = 58%, 2010 = 50%, 2012 = 34%

HDPE Bottles

0

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

2006

2007

2008

2009

2010

2011

Domestic Consumption

Net Exports

20%15% 13%

PE Film

-

200,000,000

400,000,000

600,000,000

800,000,000

1,000,000,000

1,200,000,000

2005

2006

2007

2008

2009

2010

2011

Domestic Consumption

Net Exports

28%

56%57% 42%

Non-Bottle Rigid Plastic

0

100,000,000

200,000,000

300,000,000

400,000,000

500,000,000

600,000,000

700,000,000

800,000,000

900,000,000

1,000,000,000

2007

2008

2009

2010

2011Domestic Consumption

Net Exports

63%38%

49%42% 39%

Non-Bottle Rigid Plastic

Visually illustrate of economic benefit

Rigids Committee developed a workingmatrix based on historic pricing of MRFgenerated plastics

APR members were surveyed for January &May 2013 pricing on a variety of plastic baletypes

APR Rigid Plastic Recycling Program:

Sort for Value

Questions?

[email protected]

PlasticsMarkets.org

PlasticFilmRecycling.org

MooreRecycling.com

The voice of plastics recycling

The voice of plastics recycling

Steve [email protected]

Jerry [email protected]

Liz [email protected]

Patty [email protected]

Kara [email protected]

Contact Information