Fitch Ratings Predicted Notable Surge in Plastic Recycling
Plastic Recycling | 2021-04-21 07:32:07
On the contrary, plastic consumption is expected to witness growth, especially in Asian countries.
By Paul Ploumis
SEATTLE (Scrap Monster): Ratings agency Fitch foresees growth in plastic consumption as well as recycling over the coming years, triggered by new laws and regulations by various countries across the world, especially by those countries in the Asian region. At the same time, it expects pulp and paper packaging to increasingly replace plastics.
According to the agency, regulatory measures such as ban on imported recycled plastic by China and a few other countries in the South East Asian region are unlikely to have significant impact on plastic consumption in the short-term. On the contrary, plastic consumption is expected to witness growth, especially in Asian countries.
The report noted that global trade flow of scrap plastics declined by over 45% in 2018, following the ban imposed by China. This has resulted in overall decline in plastic consumption and also triggered investment in recycling and waste management facilities. The improved plastic recyclability is likely to pose long-term risks to petrochemical demand by 2050, said Jingwei Jia, research associate at Fitch Ratings and also the author of the report.
The Covid-19 pandemic has led to increased use of plastic packaging. It anticipates growth in overall plastic consumption in the medium term, especially in emerging economies which are found to possess limited recycling infrastructure.
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