State of Our Recycling Markets 1 A Timeline of Chinas Actions - - PowerPoint PPT Presentation

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State of Our Recycling Markets

A Timeline of China’s Actions

• February 2013: China launches Green Fence
• November 2015: China initiates stricter customs crackdown
• February 2017: China announces National Sword
• February-March 2017: China enforces National Sword via arrests

and confiscation of foreign scrap material

• April 2017: Ban on certain solid waste imports is brought to the

table

• April-July 2017: China steps up enforcement of National Sword
• July 2017: China confirms its intent to ban certain recyclables from

import and announces plan for 0.3% contamination standard

A Timeline of China’s Actions

• August 2017: U.S. exporters report that Chinese buyers haven’t

received new import permits for recyclables since May

• October 2017: Some U.S. companies start landfilling materials due

to lack of end markets and decreasing commodity values

• November 2017: After pushback, China proposes (and later

agrees) to a slightly higher contamination standard of 0.5%

• January 2018: National Sword goes into effect and import permits

are issued to some Chinese importers

• February 2018: During earnings calls, solid waste companies share

the impact China’s regulations are having on them

A Timeline of China’s Actions

• March 2018: Contamination standard of 0.5% goes into effect
• March 2018: China announces Blue Sky 2018 and both the U.S.

and China announce tariffs on certain products

• April 2018: China announces plans to ban additional materials and

U.S. solid waste companies discuss challenges at WasteExpo

• May 2018: CCIC shuts down for one month; China announces

regulatory changes; and Vietnam issues its own restrictions

• June 2018: Indonesia, Malaysia and Thailand also issue or consider

issuing restrictions; China addresses U.S. concerns

A Timeline of China’s Actions

• July 2018: Total ban of imports is proposed by China
• August 2018: Tariff war between U.S. and China grows as China

targets recovered paper and plastic

• August 2018: Thailand announces plan to completely ban scrap

plastics imports within two years

• August 2018: Taiwan proposes its own restrictions; Recycling

markets continue to suffer; and U.S. solid waste companies share

• ngoing recycling challenges at WASTECON

China’s Regional Effects

• Waste Dive began tracking state-by-state effects in November

2017, including queries to every agency.

• Currently, characterize effects as “heavy” in 13 states,

“noticeable” in 28 (plus D.C.) and “minimal” in 9.

• Oregon first to receive major coverage, though eventually became

clear this was affecting entire West Coast and Northeast most

• prominently. Has now spread nationwide in different ways.
• Many program restrictions/cuts, but primarily just in small

cities/towns.

Takeaways from Conferences/Earnings Calls

• Recycling is not dead!
• Aside from China’s restrictions and recycling, labor, contamination

and safety top the list of challenges

• U.S. solid waste companies send little to no material to China in

the first half of 2018 compared to previous years

• Domestic infrastructure is underway and China’s restrictions could

actually present local opportunities

• Companies express varying degrees of commitment to recycling,

with underlying message that economics must be in their favor

Costs and Trends in Contract Changes

Costs and Trends in Contract Changes

• How high have we seen costs go in some states?
• Who is affected by the cost changes?
• What is considered a fair way to share the burden of risk?
• From what you’ve heard, do you think these costs will eventually

decrease or continue to climb?

Technology Investments in MRFs

Technology Investments in MRFs

• What adjustments are MRF operators making in an effort to meet

China’s contamination standard of 0.5 percent?

• What types of technologies are they installing to make materials

cleaner? Role of AI?

• What about end markets? Can these investments help open the

doors to new opportunities?

Single Stream vs. Dual Stream

Single Stream vs. Dual Stream

• Since the implementation of China’s waste import restrictions,

how have single stream recycling programs changed?

• What are some of the challenges that come with single stream

recycling and how can they be avoided/overcome?

• Some municipalities are switching to dual stream. Why the

change?

Glass Recycling and the Bottle Bill

Glass Recycling and the Bottle Bill

• Does it still make sense to keep glass in the main stream? Who

supports this?

• How have governments and companies responded to market

challenges?

• What is being done by industry and government to promote glass

markets?

• Where in the U.S. have we seen recent bottle bill

expansions/successes?

Market Development

Market Development

• How far is too far to send material if the price is right?
• Is the new Closed Loop Fund model working?
• How can packaging companies get involved to boost market

demand, and what qualifies as a viable market?

Education and Communication Trends

Education and Communication Trends

• Are statewide standardized lists a way of the future?
• Has Connecticut’s list been working?
• How have education methods like “oops” tags, mailers, image

stickers, etc., been effective?

Other Topics and Trends

Other Topics and Trends

• What are some advantages and disadvantages of PAYT programs?
• What’s the viability of state/local recycling goals and mandates?
• Looking forward, what may the future have in store for the waste

and recycling industry?

Q&A

Mallory Szczepanski Editorial Director of Waste360 Mallory.Szczepanski@informa.com; 212-204-4227 Cole Rosengren Senior Editor of Waste Dive crosengren@industrydive.com; 207-939-3101

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