U.S. Markets for Plastic Scrap, Repro & Regrind—Domestic &...

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U.S. Markets for Plastic Scrap, Repro & Regrind—Domestic & Export

Xavier A. Cronin, Editor, PetroChemWire, Houston

2015 Paper & Plastics Recycling Conference October 16, 2015 Chicago

Paper/Plastics Recycling Conference 10/16/15 Chicago PetrochemWire.com

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Repro/regrind definitions

Repro Recycled Plastics, two broad categories:

Repro (often called pellet, depending on the commodity)

Regrind (often called flake)

Repro and Regrind Divided into two broad categories:

* Post-consumer (also called post-consumer resin, PCR), e.g., rPETmade from soda bottles collected curbside/from redemption centers

* Post-industrial, i.e. nylon resin plant reactor lumps and purge washed and processed into regrind


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Raw material/feedstock for repro/regrind production

Post-consumer bales, e,g., dairy bottle and jugs collected curbside by municipalities, sorted and baled and trucked to repro/regrind plants (or resellers/brokers)

Post-industrial, e.g., resins, plastic products/parts/equipment; PET preforms; Grade A low-density polyethylene (LDPE) rolls sold to plastic bag/liner makers

Most deliveries truckload quantities (approximately 40,000-42,000 pounds).

Prime/off-spec resins Railcar quantities (also “bulk truck”)


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2

HDPE HMW Drums, Repro & Regrind 2014/2015FOB U.S. East Coast


$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

13‐Jun 13‐Jul 13‐Aug 13‐Sep 13‐Oct 13‐Nov 13‐Dec 13‐Jan 13‐Feb 13‐Mar 13‐Apr 13‐May 13‐Jun 13‐Jul 13‐Aug 13‐Sep

Repro Regrind

Differential

'Steady She Goes' on HDPE Drums as Supply/Demand in BalancePrices in cts/lb

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HDPE HMW Pellets (Engineered Recycling company)


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HDPE Post-Industrial Frac-melt Regrind FOB U.S. East Coast2014/2015

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

0.04

$0.30

$0.35

$0.40

$0.45

$0.50

$0.55

22‐Aug 22‐Sep 22‐Oct 22‐Nov 22‐Dec 22‐Jan 22‐Feb 22‐Mar 22‐Apr 22‐May 22‐Jun 22‐Jul 22‐Aug 22‐Sep

Mixed Colors Black

Differential

HDPE PI Frac‐melt Flake Price Falls; Black/MC Spread NarrowsPrices in cts/lbPrice Spread


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Low-density polyethylene/linear-low-density polyethylene Repro 2014/2015

0

0.005

0.01

0.015

0.02

0.025

$0.35

$0.37

$0.39

$0.41

$0.43

$0.45

$0.47

$0.49

$0.51

26‐Sep 26‐Oct 26‐Nov 26‐Dec 26‐Jan 26‐Feb 26‐Mar 26‐Apr 26‐May 26‐Jun 26‐Jul 26‐Aug 26‐Sep

LDPE MC LLDPE Differential

Lower Prime LDPE/LLDPE Film Prices Drag Repro DownPrices in cts/lbPrice Spread


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Prime PET and Clear FDA rPET

$0.00

$0.02

$0.04

$0.06

$0.08

$0.10

$0.12

$0.14

$0.16

$0.18

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

7/3/14 8/3/14 9/3/14 10/3/14 11/3/14 12/3/14 1/3/15 2/3/15 3/3/15 4/3/15 5/3/15 6/3/15

Prime FDA Clear Repro Differential

Prime PET, rPET ReproPrices in crnts/lbPrice Spread


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HIPS Regrind, HIPS Prime Resin 2014/2015


$0.00

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

HIPS Domestic Prime HIPS ‐ White Regrind

Differential

HIPS White Regrind, Truckload FOB East CoastPrime HIPS, Railcar Delivered North of Houston

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$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

3‐Oct 3‐Nov 3‐Dec 3‐Jan 3‐Feb 3‐Mar 3‐Apr 3‐May 3‐Jun 3‐Jul 3‐Aug 3‐Sep

Dairy Natural Repro

Bottles, Bales Curbside

Differential

HDPE Natural (dairy) Bale and HDPE Natural Repro, 2014‐2015Prices in cts/lb

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US Prime PET delivered railcar Midwest,PET bales FOB U.S. East Coast

0

0.02

0.04

0.06

0.08

0.1

0.12

0.14

0.16

0.18

0.2

$0.40

$0.45

$0.50

$0.55

$0.60

$0.65

$0.70

$0.75

31‐Oct 30‐Nov 31‐Dec 31‐Jan 28‐Feb 31‐Mar 30‐Apr 31‐May 30‐Jun 31‐Jul 31‐Aug 30‐Sep

Prime PET PET Scrap Bales

Prices in cts/lbPrime Bales


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‘Textile Waste’

Georgia Markets on 10-9-15

PET Yarn-on-tube (YOT) natural, 25 cents/lb, FOB Georgia

PET YOT mixed-colors 15 cents/lb, FOB Georgia

Nylon 6 YOT, 40-45 cents/lb, FOB Georgia

Nylon 66 YOT, 40-50 cents/lb, FOB Georgia

Polypropylene YOT, 28-32.5 cents/lb, FOB Georgia


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Nylon 66 mixed-luster resin baleswith/without anti-stat; nylon 66 natural bales

Markets on 10/9/15:

59 cents/lb with anti-stat, 65 cents/lb without, FOB (picked-up) southern U.S.


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Low density polyethylene bales10/9/15

Post-consumer Grade A, FOB New York/New Jersey 20.5-22 cents/lb

Post-consumer Grade A, Delivered Midwest, 22-23 cents/lb

Post-consumer Grade C, FOB southern US, 9-10 cents/lb

Post-industrial Grade A, Delivered Midwest, 34-37 cents/lb

Post-industrial Grade A-plus, Delivered Midwest, 44-46 cents/lb


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Polypropylene super sacks (big bags)

Markets on 10/9/15

Clean PP Super Sacks, offered from the auto sector, 8 cppsouthern U.S. Sacks (big bags); used to carry resins to auto parts maker plants; often exported to Southeast Asia

Dirty PP Super Sacks, including sacks (big bags) used to carry coffee and other perishables; Offers, 5 cpp FOB Houston, also often exported to Southeast Asia


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Hips white sheet, TV backs, vacuum cleaners

Markets on 10/9/15

HIPS white sheet scrap, 32 cents/lb, delivered Midwest, in gaylord boxes, loose in trucks, baled.

Backs of Televisions, can include HIPS and ABS

Vacuum cleaner parts, e.g. nozzles and handles, can include HIPS


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U.S. plastic scrap exports Data from USA trade online, US Census Bureau [US Commerce Dept.]

Nearly $1-billion a year business—2014 Value: $952,768,971

Total 2014 U.S. plastic scrap exports: 2,182,982 metric tons

Polyethylene scrap 771,726 MT

‘Other’ Scrap 761,740 MT (mix of #1-7 PET)

PET Scrap 368,766 MT

PVC Scrap 252,247 MT

Polystyrene Scrap 28,501 MT

(note there is no polypropylene category)


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Recycling plastic bottles in china


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Crushed and baled pet bottles


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HDPE dairy jugs


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Clean PP Super Sacks (Arizona Pacific plastics)


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PVC Pipe Scrap

September 4, 2015 PVC pipe scrap, mixed-colors, offer 7 cents/lb, delivered U.S. East Coast locations.


PVC Pipe Offer 10/9/15 7 cpp Delivered US East Coast

Material Mix

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PVC Pipe REGRIND (salvex.com)


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Just over half of U.S. plastic scrap exports in 2014 went to China

U.S. Plastic Scrap Exports to China 2014: 1,094,435 MT, 50.1% of total

Breakdown

Scrap PE 385,648 MT (50% of total)

Scrap PS 11,081 MT (38.8%)

Scrap PVC 143,598 MT (56.9%)

Scrap PET 240,062 MT (65%)

Other 314,064 MT (41.3%)


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U.S. Plastic Scrap Exports January-August 2015

Total: 1,337,566 MT China 635,401 MT or 47.5%

Breakdown

U.S. scrap PET exports to China: 112,433 MT or 53.8% of total

U.S. ‘other’ scrap exports to China: 238,357 MT, or 41% of total

U.S. PE scrap exports to China: 208,654 MT or 42.7% of total

U.S. PVC scrap exports to China: 72,265 MT or 52.6% of total

U.S. PS scrap exports to China: 3,692 MT or 22.4% of total


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As crude goes…Lower Plastic Scrap prices across the board for Q4 2015

Barring crude rally, commodity plastic scrap prices will continue to fall


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Recycled plastics are commodities, and there are many grades, sub-grades, market niches and opportunities fr recycling and for a profitable business

They Are influenced by commodity market cycles that affect underlying commodities like polyethylene, polystyrene, polypropylyene, nylon resins--and logistics/delivery dynamics that affect physical commodities.

E.g. A blizzard prevents curbside pickup of recyclables for days or even weeks, in turn killing off supply for processors who wash and bale them for delivery to MRFs/brokers/regrind/repro plants. Prices surge as buyers are desperate for feedstock or must revert to prime or off-spec resins. Winter of 2013/2014 U.S. East Coast/Midwest


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U.S. Markets for Plastic Scrap, Repro & Regrind—Domestic &...

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