2016 R3 Dylan de Thomas
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This document summarizes the current state of recycling and issues facing the industry. It discusses how weak commodity markets due to a strong dollar, low oil prices, excess production, and changes in China have led to declining margins. It also examines how the shift to single-stream recycling and increased packaging complexity have contributed to higher contamination rates at materials recovery facilities. However, the document ends on a positive note discussing growing partnerships within the industry and emerging Southeast Asian markets that could help improve recycling in the future.
2016 R3 Dylan de Thomas
- 1. The Story of Recycling in 2016 Dylan de Thomas, Resource Recycling MassRecycle R3 2016 Recycling & Organics Conference Mar. 29, 2016
- 2. About Resource Recycling, Inc.
- 3. About Resource Recycling, Inc.
- 5. And It’s All Glass’ Fault
- 6. And It’s All Oil’s Fault
- 7. And It’s All Single-Stream’s Fault
- 8. And It’s All Our Fault?
- 9. What We’re Talking About Today • Why is the Sky Falling? • Going Global • From MRFs to Markets • Sustainable Materials Management • Partnering Up for Next Steps
- 10. Recycling Commodity Markets Overview
- 11. The Big Picture • Strong dollar + • Excess production of crude and other commodities + • Changes in China + • = Down market, disappearing margins, hurting industry
- 13. Low Oil Prices Source: New York Times, Mar. 24, 2016
- 14. Excess Capacity ---- 10 20 30 40 50 60 70 80 90 -2.0 -1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0 2.5 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 DAK Indorama M&G Nan Ya Selenis Eastman OperatingRate,Percent North American Capacity Growth © 2016 IHS MillionMetricTons Source: IHS
- 15. Recycling Commodity Markets Overview
- 16. It’s Not Just the Green Fence…
- 17. Context of China
- 18. China’s Working-Age Population Peaking Source: United Nations World Population Prospects
- 19. Going from this: China’s Shifting Labor Landscape
- 20. To this: China’s Shifting Labor Landscape
- 21. From this: China’s Shifting Labor Landscape
- 22. To this: China’s Shifting Labor Landscape
- 23. Which Leads (In Part) To…
- 24. Aggregate Scrap Material Values Source: Institute of Scrap Recycling Industries, 2016
- 25. Value of a Commingled Ton Source: Scott Mouw, NC DNER, 2016 $- $20.00 $40.00 $60.00 $80.00 $100.00 $120.00 $140.00 $160.00 $180.00
- 26. From MRFs to Markets
- 27. Growth of Single-Stream Processing in No. Am. Source: Government Advisory Associates, Inc., 2013 & Resource Recycling, 2016
- 28. Single-Stream MRFs in the U.S. • Map Source, Resource Recycling, 2013
- 29. Increasing contamination • According to WM figures, contamination of loads is an average of 16% of inbound tons. • Contamination can be up to 50% of incoming loads • Processing costs continue to increase as markets demand reduced contamination. This drives up cost to customers. 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% - 100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 Contamination Percent Inbound Tons Residue % Source: Waste Management, 2015
- 30. The Evolution of Packaging From steel can, paper label adhesive to multi-layer, foil-lined flexible film pouch From glass jar, metal lid and paper label adhesive to multi- layer, multi-resin pouch with PP enclosure
- 31. The Evolution of Packaging Coffee Cookies / CrackersPharma / Over-the-counter Personal Care Pet Food Shaving Juice Baby Food & Formula Nuts
- 32. Reframing Recycling in Sustainable Materials Management
- 33. SMM & Recycling Source: Oregon DEQ, 2015
- 36. And the Good News Is… • SE Asian Markets Growing • Markets Cyclical • Low Oil Also Means Fuel Savings • Increased Partnerships/Industry Engagement • Innovations Abound • Acting Local…
- 37. And Thank You! Dylan de Thomas Editorial Director Resource Recycling, Inc. dylan@resource-recycling.com 503-309-5142 Resource-Recycling.com