Page 28 - Plastics News July 2017

FEATURES

market. That includes 1.42 million tons (3.1 billion pounds) in China had persuaded many exporters to stay “out of the
of scrap plastics, worth an estimated $495 million, out of scene”. Prices of certain lower grades of plastic scrap had
$5.6 billion in scrap commodities exported from the United duly slumped “more than 50%, and in some cases to near-
States to China last year, it said. zero levels”. There was a “bloodbath” too among the higher
grades, with values having slid 15-20% over the previous two
“Recycled materials are key inputs into the production of new,
months.
usable commodities for the use in value-add production,” ISRI
said. “The trade in specification-grade commodities — metals, In the European report from Veolia Propreté France
paper and plastics — between the United States and China is Recycling’s Renaud Pfund, he suggested Chinese regulatory
of critical importance to the health and success of the U.S. developments would potentially restructure the market. And
based recycling industry.” for the Middle East, Mahmoud Al Sharif of the Sharif Group
of Companies noted that only 10-20% of used plastics were
The step had been rumored. ISRI leaders said at a mid-June
news conference, after returning from a trip to China, that entering the recycling loop in the United Arab Emirates but
that recycling awareness in the Middle East was being boosted
there were serious rumors of a ban on scrap imports, starting
with plastics. That echoed earlier comments from Chinese by government-led campaigns.
plastics industry officials. However, in a related development with the campaign a
Chinese plastics recycling group said that a month-long
There is a sudden panic in world over for during any hiatus
crackdown on plastics recyclers that began July 1 had resulted
in China’s imports, no other county in the region would be
able to absorb the 7m-plus tonnes that the Chinese have been in inspecting 888 factories by July 14. That’s about half of
the 1,792 factories licensed to import waste plastics.
buying internationally on an annual basis, Dr Wong Executive
President of the China Scrap Plastics Association argued. And The China Scrap Plastics Association said in its July 17
given yo-yoing freight rates, he added, the “most effective announcement that Chinese media were reporting that 590
solution” for the scrap plastics market would be increased of those factories were found to have rule violations, with
processing at source. For the moment, he said, the cost of 349 put under investigation for those violations.
importing plastic scrap into China was “so high” and 100% It said with 383 factories had their production suspended and
container checking was taking place at most ports.
53 were closed, and that factories with violations could have
According to experts India is not equipped to take up the their import permits suspended for one year.
displaced tonnage if China introduced a ban, insisted Plastics
China’s WTO filing said the import ban on plastics would
Committee Chairman Surendra Patawari Borad of Belgium- apply to products with HS codes 3915100000, 3915200000,
based Gemini Corporation, as the Indian authorities still
3915300000, 3915901000 and 3915909000.
regarded recycled plastics as “harmful to human health”.
India’s imports amounted to “less than 5%” of those of National Sword, also known as Sharp Sword at the Bordergate,
China and import licences were restricted to only around began in late February and officially runs through October.
30 companies. “Though the country is growing very well,” Its effects, though, will likely continue to be felt. Industry
he said, “I do not expect an increase in the plastics scrap players frequently refer to impacts still being felt from Green
trade into India.” Fence several years after it ended. Perhaps China's National
Sword also could push plastic recycling opportunities to other
In a US market report also delivered by Mr Patawari Borad,
Asian countries.
“panic” over customs clearance issues and a possible ban

Plastics News | July 2017 28 43 April 2015 Plastics News
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