2005 NATIONAL POST-CONSUMER PLASTICS BOTTLE RECYCLING REPORT

Transcription

1 2005 NATIONAL POST-CONSUMER PLASTICS BOTTLE RECYCLING REPORT INTRODUCTION The 2005 National Post-Consumer Plastics Bottle Recycling Report is the 16th annual plastics recycling study. This study represents a cooperative effort between the Plastics Division of the American Chemistry Council (ACC) and the Association of Postconsumer Plastics Recyclers (APR). Designed to quantify the amount of and the rate at which post-consumer high density polyethylene (HDPE) and polypropylene (PP) plastic bottles were recycled in calendar year 2005, the reclaimer survey portion of the study was conducted by the engineering consulting firm of R. W. Beck, Inc. (R. W. Beck). HIGHLIGHTS/SUMMARY Plastic Bottle Pounds Collected for Recycling HDPE bottle pounds collected increased by almost 20 million for the year. The HDPE bottle recycling rate increased 1.2% to 27.1%. Exports of collected HDPE bottles for recycling overseas, were million pounds, or nearly 18% of recycled pounds. Polypropylene recycling increased 4.1 million pounds to 10.1 million pounds recovered. Total post-consumer plastic bottle recycling increased by more than 187 million pounds in The total pounds of plastic bottles recycled crossed the 2-billionpound-per-year threshold to reach a new record high of 2,102 million pounds. Exported material continued to outpace the increase in collected material available for reclamation in 2005, exacerbating the supply pressure faced by North American HDPE reclaimers.

2 Millions of Pounds Recycled 2,500 2,000 1,500 1, Figure 1 Growth in Post-Consumer Plastic Bottle Recycling Table 1 Post-Consumer Plastic Bottles Recycled in Calendar Year 2005 Compared to 2004 Figures (In Millions of Pounds per Year) [1], [5] 2005 Calendar Year 2004 Calendar Year 2005 Plastic Bottle Type Plastic Recycled Resin Sales [2] Recycling Rate [3] Plastic Recycled Resin Sales [2] Recycling Rate [3] HDPE Natural % % HDPE Pigmented % % Total HDPE Bottles % % PP % % PET [4] % % Total Bottles % % [1]The data in this report provide a snapshot of plastic bottle recycling trends from the national perspective. Estimates were made for non-responsive companies known to be recycling. The data are particularly useful in identifying national trends and highlighting changes that have occurred from year to year, and may be a useful tool for planning purposes. While national data may be useful as a comparison with local waste characterization and recycling data, significant differences will exist from locality to locality, and from state to state. If communities or states are making decisions where precise knowledge of the amount, composition and disposition of municipal solid waste (MSW) is crucial, e.g., where a solid waste management facility is being designed, or for local or state regulatory enforcement, etc., then local characterization of the quantities of individual components generated, recycled and disposed is essential. 2

3 [2] Based on data provided by the American Chemistry Council s Plastics Industry Producers Statistics Group (PIPS). HDPE resin sales include both the virgin and recycled plastic pounds used to produce new bottles. [3] Percentages shown for HDPE are based on virgin resin sales plus the recycled resin used in the manufacture of bottles. [4] Source: 2005 Report on Post Consumer PET Container Recycling Activity. National Association for PET Container Resources; 2006 Sonoma, California. [5]Polyvinyl chloride (PVC) and low density polyethylene (LDPE) bottles are recycled, but these materials comprise less than 1% of the total plastic bottle production stream. They are therefore no longer included in the recycling survey. Similarly, polystyrene (PS) is used to make a relatively small quantity of pharmaceutical bottles and therefore also not included. Plastic Bottles Recycling Overview for 2005 The pounds of recycled plastic bottles grew because: Recycled plastic bales maintained their value, resulting in more careful extraction of material by handlers working to optimize financial returns; Single stream curbside recycling grew as the haulers preferential collection method (single stream typically results in increased participation due to its simplicity for the household); and Several new communities switched to All Plastic Bottles curbside collection programs, which ask consumers to put all types of plastic bottles into their recycling bins. Compared with programs that only accept bottles labeled as 1s and 2s, All Plastic Bottle programs simplify decisions for consumers, often resulting in more bottles being collected for recycling. The common plastic bottle resins, as listed in the resin identification code, are: 1. Polyethylene Terephthalate (PET) 2. High Density Polyethylene (HDPE) 3. Polyvinyl Chloride (PVC) 4. Low Density Polyethylene (LDPE) 5. Polypropylene (PP) 6. Polystyrene (PS) 7. Other PET and HDPE continue to comprise over 95% of the plastic bottle market and 99.6% of the recycled pounds. Of the five remaining resins, polypropylene has the largest market share of the plastic bottle market, 2%. Polypropylene bottles are commonly recycled with HDPE. PP has a negligible impact on the properties of recycled HDPE resins when included at up to 5% of the total weight. It is not practical to quantify the amount of PP bottles recycled with HDPE. The majority of the PP recycled pounds shown in Table 1 are derived from the recovery of PP closures during PET recycling. Although each of the #3 through #7 resins are recyclable, the challenge has always been reaching critical mass for collection, transport and processing of these materials. Since the production and recycling quantities of bottles manufactured from these resins are relatively small, the recycling and production data for PVC, LDPE/LLDPE, and PS bottles will no longer be reported. 3

4 Number 7 bottles, known as other, have never been included in this report. Bottles coded #7 are commonly made of HDPE or PP with a barrier material layer added for sensitive product protection. These containers are normally recycled as HDPE bottles and counted as such. For obvious reasons, it is difficult to account for #7 pounds separately. Figure Plastic Bottle Recycling and Production Composition by Resin Type Plastic Bottle Recycling HDPE 39% Other 2% Plastic Bottle Production HDPE 38% PP 2% Other 2% PET 59% PET 58% Barriers to Increased Plastic Bottle Recycling Consumers continue to be unaware of the significant value and high market demand for HPDE post-consumer resin (PCR). Plastics recycling would benefit from significant local education campaigns. Many communities have experienced large turnover in their recycling coordinators. As determined from recent plastic recycling workshops conducted by the Association of Postconsumer Plastic Recyclers with ACC support, many of the new municipal and county recycling managers are not aware of the value of recycled plastic bottles. Ongoing education needs to be focused on collection methods, collection expansion, and consumer education regarding the strong markets for recycled bottles and the critical need for this valuable raw material. Bottle Resin Sales The denominator used to calculate the recycling rate is composed of the pounds of virgin resin sold into the blow molding market plus the recycled pounds used to manufacture new plastic bottles (2004 recycling survey data). Industry resin statistics showed that there was a significant decrease in the amount of virgin HDPE resin used to produce bottles in There are several factors at work in the HDPE bottle market that contribute to a reduction in resin pounds sold: Ongoing advancements in container light-weighting; 4

5 Reductions in the amount of motor oil bottles produced as consumers continue to move from do-it-yourself oil changes to services such as Jiffy-Lube; and Movement toward the selling of detergents in concentrated form. The total reported reduction in pounds however, was larger than could be accounted for by the above factors. The year 2005 was unusually difficult for determining actual resin sales pounds. Due to the powerful hurricanes in the Gulf Coast during the fall of 2005, several HDPE polymerization plants were forced to shut down. In addition, damage to rail tracks delayed a significant number of HDPE blowmolding resin shipments to processing plants. Blowmolding companies responded by drawing down inventories and making up domestic resin shortfalls with imported HDPE material. Blowmolding resin is a small component of the entire HDPE resin market and imports are a non-regulated commodity that are not required to be reported to the level of detail of plastic bottles. As a result, the actual pounds used for HDPE bottle production in 2005 may be somewhat higher than reported in Table 1. Rather than guess about the quantitative impact of the above events, the data were left as reported by industry sources. Reclamation Industry Update The HDPE bottle recycling industry remained stable in The domestic HDPE post-consumer bottle recycling industry stood at 29 companies. The number of smaller companies varies slightly from year to year as post-consumer bottles are added or subtracted to industrial scrap operations or as small processors are acquired by larger companies. Similar to previous years, over 83% of the recycled HDPE was processed by the 6 largest companies. Capacity utilization for the HDPE recycling industry increased to 72%, up from 70% in Material supply continued to be a major concern for HDPE reclaimers. The increase in export market demand for HDPE material outpaced the increase in HDPE bottles recycled in 2005, leaving less material available for the North American based plastics recycling industry. This is a continuation of the relatively recent surge in demand for material overseas outstripping the U.S. market s ability to generate recycled material. This report indicates the HDPE recycling industry has been in a supply-limited situation since

6 Figure 3 Size Comparison of Domestic HDPE Bottle Reclaimers HDPE Bottle Reclaimers Total Pounds= Million Total Companies= 29 Companies Company Size Classification (Millions of Pounds Processed) Million (7 Companies) 23.1 Million (16 Companies) Million (6 Companies) >30 10 to 30 <10 Figure 4 HDPE Bottle Wash Capacity in the U.S. Utilized Capacity Excess Capacity Millions of Pounds 1,400 1,200 1, Source: R.W. Beck, Inc. The figures shown above are estimates and should not be used for business planning purposes. Utilized capacity includes PCR quantities processed domestically only. Capacity based on 24 hrs./day and 365 days/year. Export Markets million pounds of HDPE bottles (17.6% of the total recovered) were exported for recycling in other countries. This is a slight increase from the 2004 HDPE exports of 145 million pounds (16% of collected pounds). End Use Markets for Recycled Plastics Natural HDPE s primary market continued to be new polyethylene bottles for a variety of non-food applications (detergent, motor oil, household cleaners, etc.). 6

7 Pigmented HDPE continued to feed strong demand for the production of polyethylene pipe and a wide range of lawn and garden products such as edging, flower and shrub pots, etc. Plastic lumber consumed a broad range of raw materials (recycled bottles, film and mixed rigid containers, plus wide-spec virgin resin) due to its diverse nature and continued as a strong market in Figure 5 Domestic Recycled HDPE Bottle End Use Pallets/Crates/ Buckets 2% Lumber 9% Other/Non- Classified 1% Automotive 4% Film/Sheet 7% Non Food Bottles 43% Lawn/Garden 12% Pipe 22% 7

8 ACC Recycling Resources ACC offers tools and resources for communities wanting to increase plastic bottle collection, including the: Technical Assistance Program (TAP) for recycling programs with specialists skilled in helping communities design and implement cost effective programs; Initiatives such as the All Plastic Bottle Collection Programs; o Nearly 2,100 communities nationwide now collect all plastic bottles according to a 2006 survey by Resource Recycling Magazine for ACC. This represents a 26 percent increase from the 2003 survey. This simplification of the collection process for consumers typically results in a 10-20% increase in plastic bottle collection over programs that specify collection of codes #1 (PET) and #2 (HDPE) only. o Approximately 2,000 unique visitors visit the website each month. Regional staff that are committed to working with community solid waste coordinators; Extensive databases that help connect buyers and sellers of recycled plastics (Markets Database) and help facilitate the purchase of thousands of products made from post-consumer plastics (Recycled Products Database). These databases are available on ACC s website o The Markets Database continues to be active with an average of 1,900 unique visitors per month to the database site. o The Recycled Plastic Products Directory also is used widely with 7,500 visitors per month. A database to facilitate the recovery of clean plastic film and grocery/retail bags from consumers and businesses, particularly in California and A tool to initiate plastics recycling progress in schools, Plastics Recycling in Your School, provides schools with valuable information and steps to follow to recycle plastics from vending machines, cafeterias and administrative settings. APR Recycling Resources APR offers a number of resources to communities, recycling officials, and industry groups seeking to enhance and improve the collection of recyclable material through its newly designed website: APR Market Development Programs include plastics recycling workshops that offer local recycling officials an opportunity to learn the latest on: markets for collected material, new product developments, new collection technology, and 8

9 how to improve a collection program, etc. APR also offers these programs through Internet-based webinars for local recycling officials. Educational information available on APR s website includes: A Technical Assistance Section designed to answer the wide variety of inquiries from the general public, recycling officials, industry groups, etc. A key component of the section is APR s Design for Recycling Guidelines, which offer a guide to help designers of new product and packaging concepts determine the impact of potential new products on recycling and the reclamation process BEFORE they bring them to market. A buyers and sellers index of companies that purchase and market recyclable plastics, including resin types purchased, processed and sold, etc. Updates on the latest in plastics recycling activities, including links to important websites, conferences, and information. A Kids Zone with information and activities designed to educate school-aged children on the facts of plastics recycling with a number of activities to encourage them to get involved. DISCLAIMER The 2005 National Post-Consumer Plastics Bottle Recycling Report has been prepared to provide some helpful ideas and information for parties interested in recycling plastics. Facilities developing a recycling process and all entities involved in the chain of collection, processing, distribution and sale of recycled products have an independent obligation to ascertain that their plans, actions and practices meet all relevant laws and represent sound business practices for their particular operations. Facilities may vary their approach with respect to particular operations, products or locations based on specific factual circumstances, the practicality and effectiveness of particular actions and economic and technological feasibility. This report is not designed or intended to define or create legal rights or obligations. ACC and APR do not make any warranty or representation, either express or implied, with respect to the accuracy or completeness of the information contained in this manual; nor do ACC and APR assume any liability of any kind whatsoever resulting from the use of or reliance upon any information, conclusions, or options contained herein. This report was produced by the Plastics Division of the American Chemistry Council and the Association of Postconsumer Plastic Recyclers. Previous editions of the Post-Consumer Plastics Recycling Report were published by the American Plastics Council, which merged with the American Chemistry Council in In 2007, the American Plastics Council was renamed the Plastics Division of the American Chemistry Council. 9