A representative from a European firm that has felt the direct impacts of China’s import restrictions on recovered plastic recently offered an inside look at the fallout from the unprecedented disruption to industry trade.
A representative from a European firm that has felt the direct impacts of China’s import restrictions on recovered plastic recently offered an inside look at the fallout from the unprecedented disruption to industry trade.
The manager of a shuttered mixed-waste processing facility in Montgomery, Ala. said depressed commodity prices and low waste volumes doomed the project. Additionally, bankruptcy filings outline millions owed to creditors.
An overhaul of the federal tax system was signed into law last month, ushering in major changes in how businesses throughout the recycling industry are taxed. At the same time, impacts may be felt at recycling nonprofit groups as some analysts predict declines in charitable giving.
The global recovered paper market experienced “a quite challenging year” in 2017, according to an expert at paper industry research firm RISI. And those challenges are only expected to continue as Chinese import restrictions ramp up.
China officially announced last month that most inbound loads of recyclables will be allowed no more than 0.5 percent contamination, which is slightly less stringent than initial proposals. But industry executives recently noted that when it comes to recovered paper, that’s largely a moot point.
The federal tax bill before Congress this week retains tax incentives and exemptions that could boost the recycling sector.
Pratt Industries plans to break ground on a sizable recycled containerboard mill in the Midwest next year, a move that’s part of the company’s vertical integration strategy.
A key unknown during the Congressional tax negotiations was the fate of tax-exempt private activity bonds, which are frequently utilized in the solid waste and recycling industry. It now appears they’ll be retained.
China is unprepared to effectively roll out and enforce its planned Jan. 1 ban on imports of certain recyclables, according to recycling leaders who recently traveled to the country in search of answers.
Graphic Packaging closed its Santa Clara, Calif. recycled paperboard mill at the beginning of December, citing high costs and market volatility as contributing to the decision.