According to the international recovery administration (BIR), China’s recycling rate for waste plastic imports will be significantly lower after strict rules on overseas waste in China, which are expected to be less than half of normal levels.
The BIR, which represents the recycling industry associations in more than 70 countries, says the Chinese ban has had a dramatic impact on pricing.
China’s imports of plastic waste will plummet in 2018
According to statistics, in 2016 China and Hong Kong imports of about 10.2 million tons of plastic waste, but by 2018 this figure will slump, will decline 30% ~ 40%, and total overseas suppliers will find alternative ways to deal with about 6 million ~ 7 million tons of plastic waste.
At an industry conference in mid-october, BIR said it had received a report from China’s waste plastics association, which has confirmed that it will continue to issue import licenses in 2018.BIR said the permit would only allow the export of plastic to China fully compliant with environmental regulations.
Abroad, the value of certain materials has fallen sharply.In China, the price of waste plastics has soared as high as 20 percent to 30 percent because of shortages.
The recycling industry will polarize
It is estimated that the Chinese mainland USES more than 80 million tons of plastic material each year, while the local recycling accounts for 21 million tons, and the imported waste plastics account for 7 million tons.Based on this figure, only about 30 percent of the local recycling rate is available, and China can significantly increase its domestic recycling capacity by China’s labor costs and waste plastic production capacity.
This time, the import of waste plastics in China may have the following effects on the domestic waste plastics industry:
➤ about 5% of the factory to focus on local recycling, generally there is a system and large enterprise with science and technology ability competence;
➤ about 5% of the industry out of China to southeast Asia factories or to Europe, America, Japan to “renewable” source;
➤ the remaining eighty percent of the enterprise is forced to completion (i.e., the company’s business license of business maturity date), not owe money can be honorable discharge, and have a debt to bankruptcy liquidation.
The most urgent recycling in mainland China is the waste plastics, waste plastics and agricultural waste plastics collected by the municipal government.However, the recycling cost of such waste plastics is higher than that of recycling, and there is no policy coordination with no industry to recycle.With so many factories and production capacity in China, the recycling rate of waste plastics in China will be greatly enhanced if government policies can be coordinated.
The recycling industry will be polarized and reshuffled, leaving big companies with technology, systems and well-capitalized factories.Equipment factories are also in the same fate, and factories that do not have scale or skill are eliminated.
In 2018, it may be a harder year for regenerating plastic workers.The goal of building a beautiful China will mean that in the next few years, environmental protection will become the norm, and environmental protection will still be the red line for the development of the recycling industry.
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