Page 38 - Plastics News December 2017

INTERNATIONAL NEWS

US plastics job numbers up, with ISRI warns of 'chaos' as China

overall industry growth expected gets ready to enforce scrap ban

he US Plastics Industry hina's enforcement of its upcoming ban on imported
TAssociation once again has Cscrap plastics and other materials (effective
crunched the numbers and found January 1 2018), is shaping up to be confusing and
a positive outlook for the plastics chaotic. The Washington-based Institute of Scrap
market in US. The Washington- Recycling Industries (ISRI) - recycling industry trade
group said in a statement that crucial details remain
based trade group released its unclear about how President Xi Jinping's directive from
2017 Size & Impact Report. The earlier this year to ban imports of "foreign waste" will
group also hosted a webinar on the report, moderated be enforced.ISRI said its senior leadership just returned
by President and CEO Bill Carteaux and Chief Economist from meetings in Beijing, and believes the agencies in
Perc Pineda."Plastics remains one of the U.S. economy's charge of bringing Xi's directive into practice "are being
largest segments and still is growing at historic heights," told to do so as quickly as possible without the time
Carteaux said. and resources needed to get it right."
"It is clear that they are not prepared for the
"There are some macro issues affecting the market but
we're still able to grow and innovate in new and lasting implementation of the ban for mixed paper and
residential plastics scheduled to start on January 1 as
ways. Based on 2016 data, the U.S. plastics industry they could not answer questions as to the meaning of
employed 965,000 workers, up 1 percent from 2015. the terms," the trade group said. The group noted that
The industry's shipments were worth $404.4 billion in China has made improving its environment a major
2016, down 3 percent from 2015. Pineda cited lower priority, and is thus targeting many industries, not just
raw material costs and low oil and natural gas prices as recycling. It's previously said it supports that goal. But
the reasons for that decline. Pineda added he expects somehow the exercise suggested government officials
the real value on U.S. plastics shipments to increase 2.2 are moving too quickly to develop good rules, especially
percent in 2018 and 2.5 percent in 2019.Both Carteaux given the huge volume of global scrap materials the
country imports.ISRI said officials in China's Ministry of
and Pineda expect proposed changes to U.S. tax policy to Environmental Protection and General Administration
have a positive impact on the plastics market, in particular of Quality Supervision, Inspection and Quarantine,
by allowing processors to invest in machinery. But they or AQSIQ, for example, are struggling to distinguish
expressed concern about possible changes to the North between what is waste and what is legitimate recycled
American Free Trade Agreement since Mexico and Canada scrap material that can be used again, and is needed,
are the industry's two largest trading partners as well as in China's factories. "In their rush to meet President Xi
about the impacts of a skills gap in plastics workers and Jinping's directive to develop rules to prevent foreign
the impacts of the opioid crisis on its ability to find and waste from entering their country, they have created
retain workers.At the state level, California led the way terms and standards inconsistent with the global
trade," ISRI said.
with 77,000 plastics jobs.
"During our meetings it was clear that there is little
That state took over the top spot from Texas, which had understanding within the Chinese government of
been home to the most U.S. plastics jobs in 2014 and 2015. the chaos they have created." It said the Chinese
Ohio took over the No. 2 spot on that list with 75,200 government is listening to concerns from ISRI and
jobs, while Texas dropped to third with 74,800. Based on other groups, but they have limited time to take in
employment concentration, Indiana ranked first with 16.5 those comments. ISRI said there is a working group of
plastics jobs per 1,000 non-farm employees. Michigan was officials from foreign embassies in Beijing coordinating
a very close second at 16.3 plastics jobs. strategy and speaking to the Chinese government on
behalf of the recycling industry.

Plastics News December 2017 38