PET Bottle Recycling Update & Impacts Felt from California Legislation.
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Transcript of PET Bottle Recycling Update & Impacts Felt from California Legislation.
Presentation Outline
• State of the PET Bottle Recycling Industry
• Impacts From RPPCL and SB 332
• Issues and Concerns
PET Bottle Recycling Flow Chart
Deposit/Redemption Curbside, Drop-Off, Commercial
PRFs MRFs Third Party Handlers
Distributors Bottlers
IPCs IPC Cert. Processors
Reclaimers – Clean Flake
Converters – Intermediate Raw Materials
Fiber Film Sheet Compounds Specialty Pellet
End Product Manufacturers
Transparencies Woven Non-Woven
Filament
Thermo-formed Products
Furniture Automotive
Bottles Strapping
Import Bales
1995 1.95 Billion lbs
1996 2.2 Billion lbs
1997 2.55 Billion lbs
1998 3 Billion lbs
1999 3.25 Billion lbs
U.S. PET Bottles Available for Recycling
1995 775 mmlbs
1996 697 mmlbs
1997 691 mmlbs
1998 745 mmlbs
1999 771 mmlbs
U.S. Post Consumber PET BottlesGross Pounds Purchased
Post Consumer BottlesGross Weight Purchased (mmlbs)
Market Segments
1997
580
111
691
66
646
A. Purchased by U.S. Reclaimers
B. Purchased by Exporters
C. Total U.S. Material Recycled (A+B)
D. Post Consumer Bottles Imported
E. Total Bottles Used by U.S. Reclaimers to Producer RPET (A+D)
1996
549
148
697
87
636
1998
656
89
745
101
757
1995
605
170
775
46
651
1999
588
183
771
60
648
U.S. PET Reclamation CapacityMay 1, 2000
Operating Plants 15 848 mmlbs
Shuttered 3 60 mmlbs
Total 900 mmlbs
7 Vertically Integrated
Vertically Integrated Reclaimers(Gross Weight - mmlbs) *
1997 1998 1999
Number of Plants 4 7 7
Capacity (lbs in) 200 405 465
Lbs Consumed 150 260 350
Lbs Consumed in Product 100 197 288
Total U.S. Bottles Available 691 745 767
% Consumed 22% 35% 46%
* NAPCOR Estimates
RPET Clean Flake Production Summary
1995 1996 1997 1998 1999
RPET Produced from U.S. Bottles 469 438 486 513 457
RPET Produced from Imported Bottles 38 70 55 75 47
Total Post Consumer Production
Available for U.S. End Use Products (A + B) 507 508 541 588 504
RPET Clean Flake Equivalent Exported 153 134 92 75 154
Total U.S. RPET Produced from U.S. Bottles
+ Exported Clean Flake Equivalent (A + D) 622 572 578 588 611
RPET Product Categories
Fiber
Sheet & Film
Strapping
Engineered Resin
Food & Beverage Bottles
Non-Food Bottles
Other
Total U.S. Convertor RPET Consumption
Source: NAPCOR
RPET Used
(Millions of Pounds)
1996 1997 1998 1999
292 320 415 417
69 71 89 68
66 58 67 80
24 26 30 26
24 41 52 68
71 53 47 50
1 1 7 9
547 570 707 718
PET Price HistoryMixed Color Bales - High & Low Pricing
0
5
10
15
20
25
30
35
40
89
90
91
92
93
94
95
96
97
98
98
.5
Ju
n-9
8
Se
p-9
8
De
c-9
8
Ma
r-9
9
Ju
n-9
9
Se
p-9
9
De
c-9
9
Ma
r-0
0
LOW
HIGH
Impacts of SB 332
• Neutered PRCC as a market mechanism– Closing of only California PET Reclaimer
– Created Open/fluid bale specifications
• Increased access for exporters
• Created an unlevel playing field for different packaging materials
Issues and ConcernsSB 332
• PET competivity disadvantaged vs other resins– One year processing fee reassessment vs
three year “freebie” for other resins
– Higher processing fee due to higher recycling rate
Recycling Infrastructure Concerns
• Evolving Bale Specification
• One Bale or Two?
• Certified Processor Capability