The pandemic outbreak has resulted in the Scrap paper plastic market hit both horizontally and vertically.
Oscillating demand and supply forces
- Scrap paper plastic market hit is attributable to the condition of penultimate markets for recycled materials which are due to various factors including the pandemic and local production capacity.
- In these times, the demand for recovered fiber and mixed paper has experienced a significant outlook in Northern American markets, as expressed by Bill Moore of Moore & Associates at the WasteExpo Together Online 2020, a virtual event.
- At the same event, another expert namely Stephanie Baker of KW Plastics also deliberated upon demand for recycled plastic as well as the investment decisions taken by her company to remain in tandem with the vagaries of demand.
- The spawning quantum of Old Corrugated Cartons (OCC) has been mainly due to the e-commerce market while the Scrap paper plastic market hit has largely affected the recycling industry.
- The OCC recovery rates are greater in the commercial sector as compared to the residential recycling space which respectively stands at around 90% and 40%.
- As per the recycling industry’s latest news, the OCC exports suffered a decline of around 20% while the recovered fiber exports declined 25% during the first six months of the year 2020.
- China’s recent policies for reducing imports are also the contributory factors for such a drop in the export figures and it is expected that this Chinese regime will maintain its status quo even in the forthcoming years.
- On a comparative timeline for the first five months of 2020 versus 2019, the following enumerated recycled paper mills have contributed to the growth of domestic demand for OCC to 6% (approximately):
- International Paper in Riverdale, Ala.;
- McKinley Paper in Port Angeles, Wash.;
- Nine Dragons (ND Paper) in Rumford, Maine;
- North Pacific Paper Company (NORPAC) in Longview, Wash.; and
- Verso in Duluth, Minn
- Moreover, as the Scrap paper plastic market hit, the Materials recovery facility (MRF) made some functional transformations to cope with the challenges imposed during the pandemic by inefficient sort lines caused by a lack of manpower.
- Those into plastics recycling operations are experiencing a sudden surge in demand for resin because the single-use products got an upper stacking advantage with the belief of consequent prevention of spreading of the deadly virus.
- Natural HDPE saw soaring demand on account of wide usage of resin across the varieties of consumer goods products. The mixed-color HDPE though had a roller-coaster demand ride due to slowdown in the automotive sector and spiking demand in plant pots and similar rigid plastic products for the agricultural market.
It is expected to have the above demand-supply trends for some more years to come.