Scrap Plastic Supplies Hit by New Trade Restrictions

SEATTLE (Scrap Monster): The implementation of the global pact, aimed at regulating the global trade of certain categories of plastic, has impacted scrap supplies badly. Incidentally, the new Basel Convention regulations restrict shipments of various types of hazardous waste including post-consumer household plastics.

According to market participants, the enforcement of the Basel Convention regulations, coupled with impacts of Covid-19 pandemic has reduced plastic scrap supplies by almost half. In addition, scrap plastic traders are faced with higher freight rates and cancellation of bookings by shipping lines on account of confusions prevailing in the market.

Various plastic scrap, especially mixed plastics and plastics from scrap electronics and contaminated plastics, have been badly impacted. The shipments of the above have slowed down considerably. The recycling firms in Southeast Asia are reportedly facing shortage of scrap plastic. This has boosted the prices of several categories of scrap plastic.

The prior notice and consent requirements are found preventing smooth trade between countries. Also, the implementation of the rule is subject to change as each country tries to adopt the guidelines within their laws.

The new rules, an attempt to combat the illegal plastic waste trade around the world, under the Basel Convention have been ratified by 180countries. U.S. is the only developed country that has not ratified the new rules.

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