CPIA Spotlights Potential Markets for Stranded Recovered Plastics

SEATTLE (Scrap Monster): The Online Reporting Tool developed by the Canadian Plastics Industry Association (CPIA) has revealed critical information about stranded tonnes of recovered plastics, further to implementation of tougher quality requirements by China on scrap materials sent to that country. The tool also highlights the potential alternative markets elsewhere in the world for recovered plastics.

According to CPIA, good majority of recycling collection programs in North America were left with stranded tonnes of recovered materials before the end of 2017. This was on account of alternative markets in South Asia and in many other countries stopping to accept redirected shipments from Europe and North America.

The data collected using the online tool reveals that many Canadian recyclers and brokers are yet to witness notable disruption in business on account of rejection of their scrap by overseas markets. This is mainly due to the fact that Canadian recyclers have been shipping high quality plastic bales that meet or exceed industry specifications. The tougher restrictions by Chinese authorities have not impacted these shipments. Moreover, the Canadian recyclers have been successful in developing domestic end-markets for their recyclables. The demand from domestic markets has ensured stable supply of quality feedstock.

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Incidentally, studies suggest that nearly 80% of plastics recovered through Canada’s residential recycling programs are directed to end-markets in North America, whereas only 20% is shipped to overseas markets including China.

CPIA noted that processors in B.C, Saskatchewan, Manitoba, Ontario and Quebec are seen implementing significant adjustments to quality control mechanisms in order to make the bales meet end-market specifications. The marketing of mixed rigid plastics and polyethylene films seems to be facing some serious issued in Alberta and Maritimes. CPIA called for incentives from various provincial governments and funding organizations in support of the reeling industry.