the state of plastics recycling in the u.s
TRANSCRIPT
The State of Plastics Recycling in the U.S.
Michael D. Taylor
Vice President, International Affairs and Trade
11th China International Forum on Development of the Plastics Industry
& China Plastics Recycling/Reutilization Forum
Yuyao, China
October 2015
Agenda Background on SPI
Brief Overview of the U.S. Plastics Industry
Trade in Scrap Plastics
Highlights of U.S. Post-Consumer Plastics Recycling
Bottle
PET Container
Non-Bottle Rigid
Bag & Film
The Development of Recycling in the U.S.
Innovations in Recycling Equipment
Q&A
Founded in 1937, SPI is the only U.S.
trade association representing ALL
segments of the plastics industry
The U.S. Plastics Industry
In 2014…
• 3rd largest industry in U.S.
• Record-breaking domestic demand
Up 6.0% to $298.3 billion
• Shipped more than $427.3 billion in goods
• Employed 940,000 people
• Operated 16,806 facilities in every U.S. state
U.S. Demand for Plastics sets
New High Level
$0
$50
$100
$150
$200
$250
$300
$350
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
$ in b
illio
ns
Machinery Molds Plastic Products Resin
Apparent Consumption = Shipments + Imports – Exports
Source: SPI “Global Business Trends” (2015)
Top U.S. Scrap Plastics Exports
Markets 2000-2014
0
100
200
300
400
500
6002
000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20
12
2013
2014
China Hong Kong Canada India Indonesia
South Korea Mexico Malaysia Vietnam Taiwan
U.S
. $
Mill
ions
U.S. Scrap Plastics Exports by
Type 2000-2014
0
50
100
150
200
250
300
350
400
450
5002
000
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
POLYMERS OF ETHYLENEOTHER PLASTICS OTHER THAN PET PLASTICSPOLYETHYLENE TEREPHTHALATE (PET)POLYMERS OF VINYL CHLORIDEPOLYMERS OF STYRENE
U.S
. $
Mill
ions
Top U.S. Scrap Plastics Imports
Markets 2000-2014
0
20
40
60
80
100
120
1402
000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
20
12
2013
2014
Mexico Canada Ecuador Dominican Republic
China Germany Italy Japan
Belgium Poland
U.S
. $
Mill
ions
U.S. Scrap Plastics Imports by
Type 2000-2014
0
50
100
150
200
250
300
3502
000
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
OTHER PLASTICS OTHER THAN PET PLASTICSPOLYETHYLENE TEREPHTHALATE (PET)POLYMERS OF ETHYLENEPOLYMERS OF VINYL CHLORIDEPOLYMERS OF STYRENE
U.S
. $
Mill
ions
Where Do We Stand with
Recovery?
HDPE bottles – 1045.4 mmlbs. or 31.6% in 2013
Non-bottle rigids – 1.007 billion lbs. In 2013
Film – 1.14 billion lbs. in 2013 E-plastics – strong
Auto plastics – nominal Appliance plastics – nominal
PP bottles – 62 mmlbs. In 2013 PET containers – 1,798
mmlbs. or 31.2% in 2013
9.2% recovery rate for MSW plastics in 2013 according to the US EPA.
2013 Highlights for Post-
Consumer Bottle Recycling
• The total pounds of plastic bottles collected for recycling reached a record high 2,906
million pounds.
• The total plastic bottle recycling collection rate was 30.9%, an increase of 0.4
percentage points over 2012.
• The total pounds of plastic bottles collected increased by 120 million pounds for 2013
over 2012, with increases for PET and HDPE and PP bottle resins.
• The annual increase in pounds of plastic bottles collected for recycling was 4.3%.
• The five year compounded annual growth rate for plastic bottle recycling was 3.8%.
• PET bottles collected increased by 80.0 million pounds for a total of 1,798 million
pounds and recycling collection rate rose from 30.8% in 2012 to 31.2% in 2013.
• HDPE bottles collected rose by 26.2 million pounds to 1045.4 million pounds.
• The HDPE bottle recycling collection rate held steady at 31.6% in 2013 compared to
the 2012 rate.
• PP bottle recycling collection totaled 62.0 million pounds, an increase of 31.8% over
2012 with 71% of the total processed domestically as deliberate PP material, as
opposed to mixed material flake combined with HDPE. While the collection rate rose
to 31.8% in 2013 compared to 27.0% in 2012, both the numerator and denominator
rose in 2013 compared to 2012.
Growth in Post-Consumer
Plastic Bottle Recycling
Source: NAPCOR, all years, for PET. For other bottle resins, R.W. Beck, Inc., 1990-2006; Moore Recycling Associates, Inc., 2007-2014
2013 Highlights for Post-
Consumer PET Container
Recycling
• The total weight of PET bottles and jars available in the U.S. for recycling in 2013 was
5,764 million pounds, a three percent increase over 2012.
• The total amount, by weight, of postconsumer PET bottles collected for recycling and
sold in the United States in 2013 was 1,798 million pounds.
• This represents an 80 million pound increase in total volume of bottles collected over
2012, resulting in a slight increase in the overall PET bottle recycling rate to 31.2
percent.
• In 2013, PET thermoforms collected for recycling in the U.S. and Canada topped 60
million pounds, an increase of 25 percent over 2012’s 47.8 million. Notably, PET
thermoforms sold to export markets dropped by 44% to 12.5 million pounds in 2013.
• Use of recycled PET in the U.S. and Canada increased again in 2013, up by 15
percent over 2012, with converter consumption totaling 1,513 million pounds across
all product categories. This is the highest converter consumption figure to date and
represents a marked increase in this multi-year upward trend.
2013 Highlights for Post-
Consumer PET Container
Recycling • U.S. reclaimers increased their purchases of U.S. bottles by 194 million pounds, or
17 percent, as compared to 2012. This accounted for 74 percent of all bottles
collected. U.S. reclaimers also supplemented their domestic purchases by importing
149 million pounds of postconsumer bottles or dirty flake, predominantly from
Canada, Mexico and Central and South America.
• Domestic reclaimers also bought another 76 million pounds of alternative feedstock.
U.S. reclaimers purchased 1,587 million pounds of PET scrap material, using more
alternative feedstock and imported material than ever before.
• Reclaimers outside of the U.S. purchased a total of 469 million pounds or 26 percent
of total U.S. bottles collected.
• Exports to Asia dropped by 84 million pounds, while exports of the estimated PET
bottle fraction of mixed plastic bales also dropped from 35.5 to 12.5 million pounds.
Exports outside of North America totaled approximately 420 million pounds.
• U.S. and Canadian reclaimers supplied about 1,417 million pounds of flake and pellet
produced from all sources of feedstock. The remaining 96 million pounds was either:
material provided by U.S. recycled PET “upgraders” or PET imported from reclaimers
in France, Taiwan, China, Mexico, Brazil, Peru and others in Central and South
America. U.S. and Canadian reclaimers also sold 86 million pounds of PET
byproducts to secondary markets.
PET Recycling and PET Material
Utilization Rates
Source: NAPCOR and the Association of Postconsumer Plastic Recyclers
2013 Highlights for Post-
Consumer Non-Bottle Rigid
Plastic Recycling • A minimum of 1.007 billion pounds of postconsumer non-bottle rigid plastic was
reported as recovered for recycling in 2013, a decrease of 1% compared to 2012, but
an overall increase of 210% since 2007.
• In 2013, the amount of non-bottle rigid plastic reported as recovered in the U.S. for
domestic and overseas recycling exceeded 1 billion pounds, an increase of 210%
since 2007.
• The change since 2012 in non-bottle rigid plastic recovered represents a drop of just
under 9 million pounds, which is less than one percent. Interestingly, there was a
substantial shift in where material was sold: domestic purchases increased by 17%
and export purchases dropped by 25%.
• Material reported as segregated resins (e.g., HDPE injection: drums, buckets, crates;
PP Battery Casings; PET Thermoforms) made up 66.1% of the total material reported
as recycled, an increase of 7% over 2012.
• In 2013, 87%—625.8 million pounds—of the resin-segregated plastic was reclaimed
in the U.S. or Canada. Eighty-one percent of non-bottle rigid plastic as part of mixed
rigid bales was exported offshore, primarily to China.
• As in previous years, PP was the largest proportion of the non-bottle rigid plastic
recycled, with HDPE following closely. PP and HDPE together make up the majority
of the non-bottle rigid plastic in mixed rigid bales, and the majority of reported
segregated resin material..
Non-Bottle Rigid Plastic
Recovered Year over Year by
Resin (Pounds)
Source: NAPCOR and the Association of Postconsumer Plastic Recyclers
2013 Highlights for Post-
Consumer Plastic Bag & Film
Recycling • A minimum of 1.14 billion pounds of postconsumer film (which includes plastic bags
and packaging) was recovered for recycling in 2013, an increase of 74 percent since
2005. In 2013, more than half of the film recovered in the U.S. for recycling was sold
to overseas markets. U.S. and Canadian processors recycled approximately 42
percent of the material, the remainder was exported.
• The higher grades of film continued to see strong demand from both domestic and
export buyers. The volume of higher grade recycled film increased by more than 190
million pounds in 2013 over 2012 levels, whereas lower grade volume decreased by
nearly 77 million pounds over the same period. The result was an overall 11 percent
increase over 2012 in postconsumer film recovered for recycling.
• Film recycling grew as a result of better reporting and increased collection in the
commercial sector, which includes postconsumer bags and packaging returned to
retail locations for recycling.
• Commercial Clear Film continued to make up the largest category of film recovered
for recycling with an estimated 516 million pounds. Commercial Mixed Color Film had
the largest increase from 2012 to 2013 and is the third largest category of film at 236
million pounds.
• Most grades of scrap film saw a decrease in value in the first quarter of 2013. With
the exception of Commercial Film nationwide and Mixed Film in the eastern region of
the U.S., scrap film prices decreased. Curbside Film had little to no value after the
first quarter of 2013.
Post-Consumer Film Recovered
for Recycling
Source: Moore Recycling Associates Inc.
Definitions of Key Terms:
Curb Sort: Each individual recyclable was sorted at
the curb into different compartments on the truck.
Dual Stream: Fiber was separated from containers
into two different compartments on the truck.
Single Stream: Fiber and containers commingled
together in the same recycling compartment on the
truck.
A Brief History of U.S. Recycling
• Late 1800’s – Recycler’s went through cities ringing a bell on horse drawn carriages collecting from residents paper metal and clothing.
• 1950’s – Many cities had residential newspaper pick-ups separate from the trash. These generally faded out over 10 years.
• Mid 1980’s – Modern curbside dual stream programs became popular
• Early 1990’s – First single stream program began in Phoenix AZ.
• Late 1990’s - Early 2000’s single stream taking off across the country.
Cost of collection is lower
Easier for the resident to recycle
Increases recycling rates
Encourages innovation in recycling equipment
Increases the tonnages for MRF’s to process
Advantages to Single Stream
With effective promotion, a single stream program can: Simplify the educational message Increase recovery of PET and HDPE bottles Reduce non-bottle plastic contamination such as glass, grit, and dirt New Technology has made it easier to sort multiple commodities Single stream has forced the recycling industry into new innovative sorting processes like: Disc screens Air classification systems Trommel screens Eddy-current and magnetic separators Optical automated sorting
More Advantages to Single
Stream for Plastics
Processing costs are higher
All commodities are mixed together so it requires more labor to separate
Extra MRF space is required as sorting systems are much larger
Initial investment in sorting equipment is high. The newest single stream lines cost more than $2,500,000 without land, balers and installation
End products are more contaminated
Disadvantages to Single Stream
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Questions & Answers
Michael Taylor
202-974-5232