Import Ban on E-Scrap Material NAHMMA

Transcription

1 Import Ban on E-Scrap Material NAHMMA

2 PLASTIC SCRAP

3 China s Green Fence Began in Purpose is to reduce contamination in recycling imports. In 2013 China imported 12 million tons of plastic waste and 70% of world s 500 million tons of e-waste.

4 China s Green Fence II Launched February China s recent crack down on scrap imports. Intent to crack down on all recycling operations without proper controls and facilities.

5 July China Bans Plastics & Others China bans Plastics, Textiles, and Mixed Paper.

6 Background China notified the World Trade Organization (WTO) of its intent to ban the import of certain scrap materials by the end of Among the items included on the list are most scrap plastics. This intent to ban is following the implement of the National Sword 2017 in January. Effective July 2017, the China Ministry of Environmental Control organized very thorough inspections on more than 800 factories.

7 Background (cont.) With more than $5.6 billion in scrap commodities exported from the US to China last year alone, the trade in specification-grade commodities metals, paper and plastics between the US and China is of critical importance to the health and success of the US based recycling industry.

8 Negative Impacts of OGF Prior to Operation Green Fence (OGF) demand for recyclables was high and the processing costs were quite low. Prior to OGF, 10% contamination in bales was allowable. New proposed rate went to 0 contamination and today no shipments are accepted from the US. With China refusing shipments, brokers were looking for other options which included Malaysia, Thailand and Vietnam.

9 Negative Impacts of OGF (cont.) December 2017 Vietnam began suspending import of waste plastics. Vietnam ports are no longer accepting plastic scrap shipments. With importing plastic scrap to these countries, freight costs are more expensive.

10 Positive Impacts of OGF Opportunities to Build Strong Domestic Markets. The Global playing field has been condensed, and domestic processors have positioned themselves to leaders. Brand attraction is at an all-time high for companies with compliant processing capabilities.

11 Positive Impacts of OGF (cont.) Efficient display recycling is a must. Shred systems must produce excellent competitive scrap value results. Successful companies must utilize their own process resources for all applicable internal and external transactions.

12 ELECTRONIC SCRAP COMMODITIES

13 Asian Market: Past/Future Majority of all Electronics Scrap has gone to China. China has been the COMEX Value Influence for Copper Globally. 800 Million Tons of Scrap Commodities are consumed Globally every year. $86.5 Billion Industry.

14 Asian Market: Past/Future (cont.) The Ratio of Brokers claiming to be Recyclers as opposed to actual Electronics Recycling Processors is 10-1 if not higher. e-stewards and R2 (Processors vs Brokers) BAN Watchdogs expose careless LCD monitor shipments.

15 Asian Market: Past/Future (cont.) Brokers were finally being held responsible. Many US and Global Recyclers abandoned CRTs. Fake Recyclers to take the money and run.

16 China - Option Gone March Category 7 Electronics Scrap These Materials will no longer be accepted in shipments to China: Besides Aluminum and Stainless Steel, all low recovery copper including Scrap Wire/Cables, Electric or Shredded Motors, Transformers, Meatballs, Copper Yokes

17 Results & Options Many Brokers will use China as reason to lower values. Reality - Broker Markets today have moved. Malaysia and Hong Kong- Always market backdoor paths to China. Vietnam- Allowed most, including displays to raise local Broker values to Asia Market. Philippines- Newest shortcut Market.

18 2018 Industry Opportunity The Majority of E-waste Scrap has always been Domestic Process Eligible. Engage in Domestic Process Partnerships. Metals Shredded plastic CRT glass All Material can be Smelter or OEM ready.

19 Questions?

20 Thank You Jeff Gloyd VP, Sales & Marketing D: (608) C: (832)