Making the Transition to the Secondary Materials Economy

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Making the Transition to the Secondary Materials
Economy

• Scott Mouw
• NC Division of Pollution Prevention and
  Environmental Assistance

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The Recycling Market Picture

• Consistent and historically high prices in past
  five years.
• Growth in both domestic and global demand for
  recovered paper, plastics, metals, and glass.
• Global transition from a virgin materials to a
  recovered materials economy.

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Growing Scarcity and Consequences of Non-Recovery

• Some materials face relatively quick depletion,
  e.g.,
• Zinc 20-30 years of available virgin material
• Silver 15-20 years
• Peak oil?
• Scrap shortfalls? One analyst predicts that the
  bulk of discarded steel scrap will be depleted
  within a decade. Recovery rates already high.
• Declining supply against rising demand will
  increase inflationary pressures worldwide.
• Coupled with economic effects of climate change,
  challenges ahead.

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Governments can effectively facilitate metals
supply by promoting and facilitating recycling
schemes that make economic and environmental
sense. World Bank, Report to G20 Deputies, 2006
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Global consumption of recycled paper expected to
rise steadily increase of 25 in next 6 years.
Data courtesy of Moore Associates
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Domestic Transition to Recovered Paper

• 78 percent of U.S. paper mills rely on some
  amount of recycled fiber

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Official Board Market (Yellow Sheet) Mill Pricing
for Mixed Paper, Newsprint, and Corrugated.
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Chinese Demand for Materials
METALS
PAPER

• Chinese demand for quality scrap far exceeds
  its domestic resources.
• China is worlds largest scrap metal importer.
• Between 2001 and 2005, Chinese imports of
  ferrous, copper, and aluminum tripled.
• Chinese construction and automotive building
  boom will increase its appetite for scrap metals.
• U.S. is Chinas biggest scrap supplier.

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China Consuming More Recyclables

• 37 of recycle PET bottles going to China
• 400 million lbs. per year

• Over 40 of Chinas imported recovered paper
  comes from the U.S.
• 100 million in paper exported to China from
  U.S. per month
• China building 16 million tons of recycled paper
  capacity by 2010

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Underutilization of U.S. Domestic Plastic Bottle
Capacity

HDPE - Millions of pounds
For PET, reclaimers in 2006 were operating at
84.2-percent capacity
Source Jerry Powell, Resource Recycling
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End-Use Capacity in the Southeast Manufacturers
using recycled paper, metals, glass, and
plastic.
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Growth in Recycling Jobs in NC

• At least 14,000 jobs directly dependent on
  recycling and increasing steadily.
• Over 540 recycling businesses in North Carolina
  almost doubling in 15 years.
• Recycling is helping keep manufacturing alive in
  North Carolina.

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Recycling Essential to NC Manufacturers
Examples of products made in NC
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Major Plastic Bottle Recyclers in NC (and nearby)
Recycle America
Plastics Revolutions
Ensley
Envision
Blue Ridge
URRC/Coca Cola
SE Container
Recycling Loop Closed in the Carolinas!
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Glass Demand in North Carolina
St. Gobain
Owens-Illinois
Manufacturers Can Double Use of Cullet
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Priming the Pump in NC

• Education
• Legislation
• Programs
• Municipal curbside assistance
• Targeted grant-making
• Outreach campaigns
• Product Stewardship

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Policy Initiatives

• General Assembly starting to understand economic
  development aspects of recycling.
• H 1518 (2005 session) requiring all ABC
  permit-holders to recycle as of 1/1/08.
• H 1465 (2005 session) banning the disposal of
  pallets, oil filters, and plastic bottles as of
  10/1/09.

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Traditional vs. non-traditional materials

• Rosy picture for paper, metals, plastics, and
  glass
• Rising global and domestic demand
• Mature infrastructure and healthy pricing
• Main challenge is supply, not demand
• New generation of materials/products pose more
  difficult problems
• Fluorescent lights - Paint
• Thermostats - Pharmaceuticals
• Radioactive devices - Electronics
• Gas cylinders - More to come.

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Thank You!

• Scott Mouw
• NC Division of Pollution Prevention and
  Environmental Assistance
• Scott.mouw_at_ncmail.net
• 919-715-6512