Recyclables Price Drops After China Bans U.S. Scrap
China recently instituted a ban on waste materials imported from the United States, which is causing a major impact on the market as the price of these paper and plastic waste products have plummeted. Here's what you need to know about the ban and how it is affecting U.S. industry.
The Details of the Ban
After the end of 2017, China will no longer accept 24 different types of solid waste products from the U.S. In 2016 alone, China purchased about $5.6 billion in waste materials from the United States. $2.2 billion of that amount was for paper and plastic waste, representing more than 67 percent and 40 percent of American waste in these categories, respectively. In a statement regarding the ban issued in July, China reported that this new initiative is designed to protect the environment and the health and safety of Chinese citizens.
Effects on the Marketplace
The result of this ban is that U.S. landfills will be inundated with more waste than ever before. U.S. waste and recycling firms are now struggling to figure out what to do with all of the added waste, even though much of it is recyclable. This influx of supply into the market has resulted in dramatic price drops for these waste materials. This is a boon for manufacturers that use recycled materials in their products, as they will now be able to get the raw materials needed at far less cost. However, the American marketplace isn't fully equipped to handle all of this waste.
The U.S. Responds
In preparation for the ban going into effect at the end of this year, a variety of U.S. manufacturers have committed to utilizing more post-consumer materials in making their products. Companies on board include such giants as Procter & Gamble, Keurig, Campbell's Soup, Target, and Coca-Cola, among many others. These manufacturers are taking advantage of record low prices on these materials to improve their manufacturing processes, lower costs and help the environment. Unfortunately, U.S. demand is nowhere near what China's was, so it is likely that it will take a while for the market to stabilize as manufacturers adjust to the new landscape.
Purchase Recyclable Waste in Central Kentucky
Here at Central Kentucky Fiber Resources, we are committed to helping businesses incorporate more recycled materials into their products. We will work with your business to find recyclable solutions that make the most sense for your organization and the products it produces. We welcome you to get in touch with us today to learn more about the Chinese ban on American waste imports and how it may affect your business in the future. Our associates will be happy to answer your questions and help you get started on the path to sustainable manufacturing. Reach out to us today to get started.