The chairman of the Bureau of International Recycling (BIR) plastics committee has warned that emerging export markets for plastics scrap could introduce sudden import restrictions, a scenario which he said would “again push international trade into a tailspin”.
Surendra Borad issued the warning as part of his outlook on the global plastics scrap market
Surendra Patawari Borad issued the warning as part of his outlook on the current state of the global plastics scrap market.
Mr Borad pointed to the recent increase in plastic export prices, as trade to emerging markets including Thailand, Vietnam, Indonesia and Malaysia have filled the void left by China, which has sought to ban some materials from entering its borders.
This has had a particular impact on the market for low quality plastic materials, which had been traded in large volumes with Chinese reprocessors.
However, Mr Borad warned that the industry should remain cautious over the demand for material from users in other South East Asian markets.
He said: “Exports to these countries have increased many times over. However, there is a lurking fear of some sudden change in import regulations, a scenario which would again push international trade into a tailspin. Vietnam is not accepting the containers.”
Production scrap
In April 2018, China announced further import restrictions, which included imports of production scrap from the end of 2018. Something which took the industry by surprise, Mr Borad said.
“This was clearly a shocking development,” Mr Borad added.
“Earlier, the industry had the impression that China’s actions were designed to combat the dumping of low-quality materials, but the ban on production waste imports clearly shows that the Chinese have a different agenda. It is quite possibly a purely protectionist measure designed to promote domestic collections of plastics scrap.”
EU regulations
Mr Borad also urged the European Commission to review its “Note Verbale” clause.
Surendra Borad said there is a “lurking fear” of sudden import restrictions to new markets
This relates to a regulation, whereby the European Commission sends a request to each non-OECD country seeking written confirmation of whether “waste” may be exported to that country.
In cases where there is no response, it is assumed that the country would like restrictions and so imports can take place only with prior written notification. He says the USA does not have such a regulation, giving it an advantage.
Mr Borad concluded: “Exports of plastics scrap cannot take place to many countries without prior notification. This is hindering exports of plastics from Europe to the rest of the world. Such restrictions are not applicable to exports from the USA, thus giving it an advantage as it is able to export scrap to, for example, Africa and the Middle East without any restrictions.
“Hopefully, a re-evaluation of the EU’s waste shipment regulations will lead to changes ensuring a smooth trade in scrap.”
plastics scrap market
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Source: letsrecycle.com Plastic
