According to the Bureau of International Recycling, after China makes stringent regulations on overseas scrap materials, the import recovery rate of waste plastics in China will be greatly reduced, and it is estimated that it will be less than half of the normal level.
BIR, representing recycling industry associations in more than 70 countries, said the ban in China has had a dramatic effect on pricing.
China's imports of plastic scrap will plunge in 2018
According to statistics, the import of plastic film waste in China and Hong Kong in 2016 is about 10.2 million tons, but this number will plunge by 2018, the total amount will drop 30% ~ 40%. Overseas suppliers will find alternative ways to deal with about 6 Millions to 7 million tons of plastic scrap.
In an industry meeting in mid-October, BIR said it had received reports from the China Society of Waste Plastics that Chinese government officials had confirmed that they would continue to issue import licenses in 2018. BIR said the permit would only allow exports to China to be fully environmentally friendly Regulations of the plastic.
In some countries, the value of certain materials fell sharply, while in China, the price of waste plastics soared by 20% to 30% due to a shortage.
The recycling industry will be polarized
It is estimated that mainland China uses more than 8,000 tons of plastic materials each year, while local recycling accounts for 21 million tons and imports of waste plastics accounted for 7 million tons. According to this figure, the local recovery rate is only about 30% to China's labor costs and waste Plastic production capacity, China can significantly increase the domestic recycling.
The ban on imports of waste plastics in China, the domestic waste plastics industry may have the following effects:
➤ Approximately 5% of the plants are converted to centralized local recycling, and are generally systematically and technically large enterprises capable of being competent;
➤ about 5% of the industry out of China to Southeast Asian countries to set up factories or to Europe, the United States, Japan to 'source regeneration';
➤ The remaining 80% of the companies are forced to close the industry (that is, the company's business license expires), no glorious retirement, and debt will have to liquidate bankruptcy.
China's most urgent recovery is the municipal government to collect waste plastics, household waste plastics and agricultural waste plastics, but this waste plastic recycling costs than the recovery after the high selling price, there is no policy with no industry to recover the processing. There are so many factories and production capacity, if with the government policy, will make China's waste plastics recycling rate greatly improved.
The 'scrap' recycling industry will be polarized, re-shuffle, left behind is the big business, technology, system and capital abundant factory. Equipment factory is also the same fate, no scale or no skills of the factory also It was eliminated.
to sum up
2018, for the recycled plastics practitioners may be more difficult for a year.Nineteenth building beautiful China's goal means that in the next few years, environmental protection will become normal, environmental protection is still decided to renewable plastic industry development of the red line.
The good news is that there will still be an import license in 2018. The bad news is that only a regular company can qualify for approval.
And industrial upgrading, the industry at the same time will be forced to small businesses, small workshops were eliminated on a wide range of the situation.
So, you waste plastic boss, and cherish it! Got through today, who knows what will happen tomorrow?