Polyven Recycling Plastics Overview 2011
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Transcript of Polyven Recycling Plastics Overview 2011
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www.mathelinbay.com
www.mathelinbay.com Your MBA in the resin business
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Canadian Plastics Resin Outlook ConferenceOctober 6, 2011
The Outlook forRecycled Resins
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Agenda
The recycling industry is playing a significant role in
helping companies develop and implement winning
strategies to help offset rising raw material costs.
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Recycled Resin Overview
Mathelin Bay Introduction
Fundamentals Recycled Resin
Prime Resin Markets
Industry Outlook
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Mathelin Bay Associates
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INTRODUCTION
Mathelin Bay leverages extensive multi-disciplined
experience and networking to help clients develop
sustainable resin programs that reach the bottom line.
Resin Procurement for Processors.
Non-Resin Procurement for
Processors.
Sales Supportfor Processors.
Mergers & Acquisitions and Private
Equity Supply Chain Rationalization.
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RECYCLED RESINSFundamentals
Demand continues to increase
Supply continues to decrease
Prime & Secondary market correlation
Recycled content / environment
Alternatives for recycling industry
Just as in polymer resin industry economics, recycled resins
have a unique set of drivers that impact their market .
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DemandCONTINUES TO INCREASE
Sourcing strategies for recycled resins are key.
Despite economic downturnthere is significant demand
increase for plastic raw
materials to help offset risingfeedstock costs.
Demand for historical scrap,
regrind and repro is at all timehigh and will continue to rise.
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SupplyCONTINUES TO DECREASE
Supply streams are valuable commodities.
Despite increased recycling efforts,supply of post industrial feedstock is
decreasing and post consumer
feedstock is marginally improving.
This will translate into higher costs
across the entire value chain over
the near term and increase scrap
and repro pricing in themarketplace.
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SupplyCLASSIFICATIONS
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SupplyCLASSIFICATIONS
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Market CorrelationVIRGIN PRIME and SECONDARY
Traditionally recycled resin prices lag in relation to virgin
commodity pricing both in an up and down market.
There is correlation exhibited
between recycled resins Vs virgin
prime and secondary markets over
time.
Recycled resins are becoming and
establishing a unique market all onto
themselves despite this correlation.
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EnvironmentRECYCLED CONTENT PUSH
We will continue to move into more creative and innovative
ways to manage our waste and build efficiencies.
3Rs and zero landfill initiativeswill stay as the norm.
Major OEM brands are
capitalizing on marketing.
Alternative fuel option.
Waste to Energy movement.
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AlternativesRECYCLING OPTIONS
There will be further rationalization and competition for
recycled resins and waste as these processes gain
popularity.
Recycled content standardized
and verifiable content.
EOL options to tackle fossil fuel
reduced dependency and
carbon footprint elimination.
Alternative fuel/energy option.
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Prime Resin MarketSNAPSHOT
Commodity resin markets will continue to react to supply
and demand economics and recycling programs will grow.
Commodity resin markets andproducers are battling
increased feedstock costs and
business rationalization due toglobal competition.
Significant social and economic
drivers will continue to prevail.
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Industry OutlookRECYCLED RESINS
Recycled resins demonstrate a financial cost advantage
and promote environmentally friendly solutions.
Despite slower economic growthrecycled resins will grow in demand
and have a significant cost
advantage over virgin and secondary
commodity resins.
Environmental initiatives will
continue to create demand pull and
promote the use of recycled resins
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Industry OutlookRECYCLED RESINS
Recycled resins have and will continue to carve their own
special niche within the commodity resin market.
Alternative fuels/energy and waste
to energy EOL innovative
technologies are on the rise which
will provide additional outlets and
competition for recycled resinfeedstock.
Reduction of carbon footprint and
recycled content standardization will
continue to favor the growth ofrecycled resins.
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Contact InformationMATHELIN BAY MANAGEMENT TEAM
Phil Karig, Managing Director
Former CPO and VP Procurement, Spartech Corporation.
Email: [email protected]
Bruce Petersen, Chief Procurement Officer
Former VP Materials Management, A. Schulman, Inc., PresidentDiamond Polymers and SPE President.Email:[email protected]
John Denzer, Executive Partner
CEO of The Polyven Group and former Director of Sales for PP at
Formosa Plastics Corporation, U.S.A. and PP Market Manager atMillennium Chemicals (currently LyondellBasell).
Email: [email protected] &[email protected]
This Team has Over 90 Years of Polymer Industry Experience.
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Thank You