Domestic plastic bottle recycling market demand exceeds U.S.

In 1995, the recovery rate of PET bottles in the United States was close to 40%, decreasing year by year in the following years, and the current level was known. In order to actively involve the public in plastic recycling, APC, NAPCOR, APR, NSDA, the International Bottled Water Association and the American Food Manufacturers Association jointly organized the "All Plastic Bottle Recycling" campaign to encourage residents to place all plastic bottles in the recycling bins. And no matter what kind of material it is used to produce. Due to the vast majority of bottles made of polyester and HDPE, this movement attempts to increase the amount of bottles recycled.
Mr. Schmidt said that the price of scrap PET bottles is 17-17 cents/lb. This price is quite high, and the historical average is about 7-9 cents/lb. The main reason for the increase in prices is China's increased demand for used PET bottles. Mr. Flexon said that the current price level is actually falling from the level of 21.5 cents/lb at the end of January this year. The reason for the price drop may be China's Spring Festival, but the time is somewhat different. Mr. Dunbar said that the biggest challenge at present is that the demand for domestic plastic recycling and processing companies will be difficult to meet in the short term.

Phoenix Technologies uses technology developed in cooperation with its management partner, Plastics Technologies, to pelletize and crystallize recycled PET bottles for reuse in food packaging applications. Mr. Flexon said that China’s demanding device made the price of polyester waste bottle reach the highest level in nine years, while the price of the final domestic product in the United States did not increase, and the profits of the domestic PET bottle chip recycling companies were seriously eroded. To continue, there will not be many bottle chip recycling and processing companies that will be out of business in the next 18 months.

The proportion of US polyester and high density polyethylene (HDPE) recycling over the same period continued to be lower than aluminum cans. In 2002, the recovery rate of polyester packaging containers was 19.8%, while the recovery rate of HDPE packaging containers was 24.2%. The data comes from the 2002 National Waste Plastics Recycling Report, which is the American Plastics Council (APC), the National Association of Polyester Packaging Resources (NAPCOR), the American Association of Plastic Recyclers (APR), and the National Soft Drink Association of the United States. (NSDA) joint research results, in sharp contrast to this is the Aluminum Association of America report pointed out that in 2002 the United States aluminum cans recycling rate was 53.4%.

Asia’s demand for used plastics not only affects supply and prices, but also affects quality. Luke Schmidt, president of NAPCOR, headquartered in Charlotte, North Colorado, pointed out that China has recently stepped up the purchase of used PET bottles from the United States. Historically, Chinese buyers have been a major player in the West Coast market, but they now extend their tentacles to the East Coast and are actively purchasing waste plastics here. According to NAPCOR statistics, in the United States, exports of polyester in 2002 increased by 17.5% from the previous year. Floyd Flexon, vice president of environmental issues at Amcor's polyester packaging company, which has a PET bottle recovery unit in Michigan, said that 2003 may indicate that 30-35% of the bottles are exported.

Due to the high value of aluminum cans, the recycling rate is relatively high. In comparison, there are many reasons for the low recovery rate of polyester and HDPE containers. Some industry observers think that there is not enough to say that disposable plastic bottles are difficult to recycle. The recycling facilities, while some changes in the packaging container industry have also hindered the recycling of plastic containers.

The lower recovery of polyester and HDPE packaging has caused a supply crisis for US recyclers, both of which have greater recycling capacity than supply capacity. Jean Bina, commercial director of Phoenix Technologies, Ohio, said that the decreasing recycling rate has affected the successful development of the domestic market for waste plastics processing and utilization technologies. Higher export demand from China has aggravated supply tensions.

Judith Dunbar, manager of the APC technical assistance program based in Arlington, Virginia, said that too many used plastic bottles are shipped from the West Coast to overseas markets. The recognition ability of overseas market buyers is poor, so the proportion of impurities in used plastic bottles is high. In terms of material quality and quantity, it will have terrible consequences for the US domestic waste plastics recycling industry. Flexon agrees that the growth in demand in China will affect the supply capacity of waste plastic bottles in the US market. Chinese buyers seem to buy everything without saying a word, so polyester and HDPE waste bottle suppliers hardly need to improve the quality of their products. Ms. Bina also pointed out the impact of China's demand on the waste bottle market in the United States. All the products China has bought have caused prices to rise, quality to decline, and good quality and good prices to be difficult to obtain at the same time.

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