2014 Postconsumer Plastics Recycling in Canada Postconsumer Plastics Recycling in Canada "1 ... • Moore conducts an electronic survey of market participants in ... 2014 Postconsumer

2014 Postconsumer Plastics Recycling in Canada

April 2016

Prepared by Moore Recycling Associates for the Canadian Plastics Industry Association

Moore Recycling Associates Inc PO Box 1327 Sonoma, CA 95476 707-935-3390 707-935-1998 www.MooreRecycling.com

http://www.MooreRecycling.com

2014 Postconsumer Plastics Recycling in Canada "1

Introduction This is the sixth year that Moore Recycling Associates has conducted a survey to determine the amount of postconsumer plastic recovered in Canada for recycling. This report documents how much Canadian postconsumer plastic was collected and reclaimed by U.S or Canadian reclaimers and how much was sold to overseas markets. This study is sponsored by the Canadian Plastic Industry Association (CPIA) and is made possible by the businesses that cooperated by providing data.

Executive Summary In 2014, at least 320.7 million kilograms of postconsumer (including commercial) plastic material in 1

Canada was collected for recycling. This represents a 3% increase over 2013, primarily due to increases in film and HDPE bottle recycling.

Postconsumer Plastic Collected (kgs)

Throughout this report the term “postconsumer” refers to plastics that have been used for their intended purpose by 1

consumers and by businesses. Commercial materials that have met their intended use are often recovered outside of curbside or drop-off collection programs and include items such as totes, pallets, crates, and other commercial packaging. (This report does not cover the recycling of postindustrial (preconsumer) materials, which the U.S. EPA defines as materials, such as scrap and trimmings, that are generated in manufacturing and converting processes.)

" Moore Recycling Associates Inc PO Box 1327 Sonoma, CA 95476 707-935-3390 707-935-1998 www.MooreRecycling.com

PET Bottles HDPE Bottles PP/Other Bottles Non-bottle Rigid Film Foam



Overall, 78% of the material reported was reclaimed in Canada or the U.S. and 17% was exported overseas. The destination is unknown for the remaining 5%. Even though this study continues to indicate that the vast majority of material collected in Canada for recycling routinely remains in North America rather than moving to overseas markets, the percent reported as staying domestic did drop by 6% to the lowest percent seen since the study’s inception 6 years ago. 234

Summary of Canadian Postconsumer Plastic Recycling

Increased collection, primarily for curbside film, contributed to the growth in postconsumer plastic reported. The plastic recycling data provided in this report is the minimum amount collected. A greater survey response rate would provide a more accurate—and likely higher—documented

2014 Material Processed in Canada can include imports from the US, Mexico and outside of North America. In 2014 2

imported material came solely from the US.

Capacity for processing bottles often overlaps with capacity to process non-bottle rigid plastic and/or film. Thus, adding 3

the capacities reported here for bottle, non-bottle rigid and film could result in some double counting.

Utilization is determined using estimated capacity and reported purchases of material from Canada, the U.S., Mexico 4

and outside North America by Canadian reclaimers.


2014 Collection (millions of

kgs)

Change in Collection 2013-2014 (millions of

kgs)

2014 Material

Processed in Canada2

2014 Capacity3

(millions of kgs)

2014 Utilization4 of Capacity

North American End Markets

PET Bottles 113.1 0.3 103.3 NA NAfiber, food & beverage bottles, film &

sheet, strapping, and non-food bottles

HDPE Bottles

69 2.4 86.3 100 86%bottles, pipe, film & sheet,

automotive applications, lawn & garden products, lumber & decking

PP/Other Bottles

7.2 -1.9 NA NA NAFor PP: automotive applications,

crates & buckets, caps & closures, lawn & garden products

Non-Bottle Rigid

Plastics66.7 0.4 67.1 115 58%

automotive applications, crates & buckets, lawn & garden products, pipe, film & sheet, fence posts,

consumer and household products

Film 61.8 7.8 23.9 60 40%

film & sheet, pipe, automotive applications, lawn & garden

products, pallets, lumber & decking, crates & buckets

Foam 2.9 0.2 2.8 NA NAprotective packaging, building

products, picture frames



amount of Canadian plastic collected for recycling. This report’s findings are based on data from two surveys: a postconsumer plastic recycling survey of export markets for all postconsumer plastic categories and all domestic markets (except PET bottle reclaimers) conducted by Moore Recycling, and a separate survey of PET bottle reclaimers conducted by the Association of Plastic Recyclers (APR) and the National Association for PET Container Resources (NAPCOR). Data for this report was provided by 60 companies —24 Canadian and 19 U.S. plastic reclaimers , as well 5 6

as, 17 exporters. Data gathered in the survey is cross-checked with data available from Canadian provinces and other recycling industry information. This is a voluntary survey; the amounts reported here represent the minimum known to be recovered for recycling.

All major recycled plastic categories—Bottles, Non-Bottle Rigid, Film and Foam—increased collection compared to 2013. The Film category represents most of the growth: a 7.8-million-kilogram increase; all other categories combined had an increase of 1.4 million kilograms. Plastic bottles continue to make up the majority of the recycled plastic.

PET bottle collection increased only slightly in 2014, and remains the highest volume plastic product segregated by resin. HDPE bottles are the second largest category segregated by resin, showing an increase of just over 2 million kilograms year over year.

In 2014, non-bottle rigid plastic recycling increased slightly over 2013. No significant increases were reported in the bale categories for resin-separated or mixed rigid plastic, but there was a shift: domestic purchases of mixed rigid bales decreased and export purchases increased in 2014. This shift is likely in part to a rebound from China’s Green Fence import enforcement effort in 2013 and shifts in domestic buyers. One key reclaimer in Canada ceased operations in 2014.

North American reclaimers continue to report expansions that enable them to begin processing non-bottle rigid plastic or to process more of it. The volume of non-bottle rigid recycling reported

In contrast to reports for 2012 and earlier, the total for companies responding includes those responding with Canadian 5

sourced postconsumer plastic scrap to the Moore Recycling survey, as well as the APR/NAPCOR PET bottle reclamation survey.

Moore Recycling surveys and counts material from reclaimers, defined as companies that wash postconsumer material 6

or otherwise process unwashed material into a clean feedstock or end product.


Postconsumer Plastic Recycledby Major Category (kgs)



here is likely still conservative, particularly the volume reported as non-bottle rigid plastic segregated by resin (primarily from the commercial sector).

The 14% increase in film recycling in 2014 over 2013, is attributable to increased collection, primarily of curbside film; the destination is unknown for much of this volume.

The majority of the foam reported was foam polystyrene (PS), which was predominantly from protective packaging for durable products and some food packaging, e.g., meat trays, clamshells and coffee cups.

Postconsumer Plastic Recycled By Resin (kgs)

PET and HDPE make up the majority of postconsumer plastic recycled in Canada. With the same breakdown as 2014, the majority of the PET is from bottles (90%), and the remaining 10% is non-bottle rigid PET. For recycled HDPE, non-bottle rigid decreased while film and bottles increased by 3% and 1% respectively. In 2014 the HDPE category comprised of 69% bottles, 18% non-bottle rigid and 13% film. The third largest resin collected for recycling is LDPE, consisting primarily of film (99%). PP consists of 79% non-bottle rigid and 21% bottle material; trading a 2% increase in non-bottle rigid and a 2% decrease in bottle in 2014.




Methodology Moore Recycling Associates conducts the Canadian survey simultaneously with the annual U.S. Plastic Recycling Survey. This is a voluntary survey. The survey gathers data on all Canadian- and U.S.-sourced plastic except that purchased by PET bottle reclaimers in Canada or the U.S.; as previously mentioned, that data is provided by a study conducted through APR and NAPCOR.

To prepare the report: • Moore Recycling continually updates its markets database to include current exporters,

reclaimers and other handlers of plastic scrap; • Moore conducts an electronic survey of market participants in plastic recycling to collect

data; and • Moore provides a verification step for survey-collected data, checking the accuracy of the

data through follow-up calls, conversations with industry contacts, and reviews of other public sources of recycling industry information, including available provincial data.

Data Collection and Analysis As noted, Moore Recycling continually updates a proprietary database of plastic exporters, processors, reclaimers and key brokers to ensure that the survey reaches the key plastic scrap buyers from North America. 7

Moore Recycling uses a custom-designed web-based survey system to gather data. Although the overall methodology has not changed since the first report, Moore Recycling continually seeks ways to improve the completeness and timeliness of the survey responses. For example, beginning in 2013, Moore Recycling updated the names for many of the mixed rigid plastic categories to reflect bale specifications released by the Association of Plastic Recyclers (APR) bale terminology. 8

In 2014, Moore added new categories to the segregated resin section e.g., PET x-ray film, PP bulky, and expanded the postindustrial plastic section.

An email with a unique link and message is sent to each contact. After an adequate amount of response time has passed, Moore Recycling employees send follow-up emails and make telephone calls to retrieve data. This follow-up process can take weeks or months, depending on

Through Moore Recycling’s project work in the industry and web sites it manages—PlasticsMarkets.org, 7

RecycleMorePlastic.org and PlasticFilmRecycling.org—Moore Recycling regularly receives requests from new contacts for information on material and markets. Moore also identifies potential buyers through published market databases and conversations with suppliers, such as material recovery facilities (MRFs) and key reclaimers.

Bale specifications released by APR utilize the “Terms and Tools,” found at https://www.recycleyourplastics.org/recy8 -cling-professionals/education/terms-tools-app/.


https://www.recycleyourplastics.org/recycling-professionals/education/terms-tools-app/


http://www.plasticsmarkets.org/

http://www.recyclemoreplastic.org

http://plasticfilmrecycling.org/


responses. Data are entered into the online survey tool, either directly by the company surveyed, or by Moore Recycling staff when the survey is completed over the phone, by email or fax. Incoming data are reviewed for accuracy, and follow-up calls are made as needed. After data collection is complete, Moore Recycling compiles the data and categorizes them based on the detail reported. 9

The final data totals are reviewed and analyzed, then reported with as much detail as possible without compromising the participating companies’ confidentiality. In order to determine trends and identify anomalies that may require further vetting of data, the analysis includes year-to-year comparisons of totals, material categories, and buying trends among export and domestic buyers. Describing how the data are collected, as well as what is and is not included in the survey, provides readers of this report with the context necessary to cross-reference results with other available industry data.

Survey Categories The survey conducted by Moore Recycling requested data for PET bottle exports, and for reclamation and export of:

• HDPE bottles (natural, colored, mixed) • PP & other bottles • Commingled bottles • Mixed rigid plastic bale categories (detailed below) • Categories for Non-Bottle Rigid Plastic Segregated By Resin - A list of recovered

products that are generated as segregated commodities or have been sorted into segregated categories and then sold. The list is based on categories respondents have offered in previous surveys (e.g., PET thermoforms, HDPE injection (drums-buckets-crates), PP hangers, PVC Flooring, PC CDs). Moore Recycling also provided an “other” category for PET, HDPE, PP, PS, PVC, ABS, and PC.

• Film (detailed below) • Foam - EPS (Expanded Polystyrene), EPP (Expanded Polypropylene), EPE (Expanded

Polyethylene), Flexible Polyurethane, Rigid Polyurethane, Other Foam

The APR and the National Association for PET Container Resources (NAPCOR) conduct a separate, but similar survey of domestic PET reclaimers. Moore Recycling does not survey these reclaimers and receives data on domestic processing of PET bottles and the following non-bottle rigid plastic data from APR/NAPCOR: strapping, thermoforms—both from PET bottle bales and purchased separately—and cap and label material from the PET bottle reclamation process.

Moore Recycling conducts the survey and maintains confidentiality of individual responses; no individual company data 9

are released, nor any specific data that does not have at least three companies reporting.




Detailed mixed rigid plastic bale categories:

• All Rigid Plastic: No Bulky (mixed bottles and containers) - All bottles, all household non-bottle containers (includes thermoform packaging, cups, trays, clamshells, food tubs), with no bulky items.

• All Rigid Plastic: With Bulky - All bottles, all household non-bottle containers (includes thermoform packaging, cups, trays, clamshells, food tubs), and all bulky rigid plastic (includes carts, crates, buckets, baskets, toys, lawn furniture).

• Pre-picked Rigid Plastic: No Bulky (bottles and containers with PET & HDPE bottles removed, primarily non-bottle containers) - All household non-bottle containers (includes thermoform packaging, cups, trays, clamshells, food tubs), with very few bottles and no bulky items.

• Pre-picked Rigid Plastic: With Bulky (all rigid plastic with PET & HDPE bottles removed) - All household non-bottle containers (includes thermoform packaging, cups, trays, clamshells, food tubs), all bulky rigid plastic (includes carts, crates, buckets, baskets, toys, lawn furniture) with very few bottles.

• Bulky Rigid Plastic - All bulky rigid plastic (includes carts, crates, buckets, baskets, toys, lawn furniture), and no bottles or containers.

• Tubs & Lids - Non-bottle household containers, including buckets, predominantly PP and PE, with no bulky items.

• PE/PP Bottles, Containers & Bulky (Olefin) - Primarily polyethylene and polypropylene bottles, non-bottle containers and bulky items (includes carts, crates, buckets, lawn furniture).

• PP Bale - Primarily polypropylene bottles, non-bottle containers and bulky items (bulky as described above).

• HDPE Colored Bottles with containers - Primarily HDPE bottles, with some HDPE or PP household containers, no bulky items.

• Mixed Resin Clamshell Bale - A mixture of PET, PP, PS, PVC clamshell-type containers.

• Other Mixed Rigid Plastic - A “catch-all” category, defined on a case-by-case basis.

All the mixed rigid plastic bale categories contain some non-bottle material. The categories may be a mixture of resins, or some combination of bottles, containers, bulky items and other non-bottle rigid plastic. Most are a combination of both resin and product type. The non-bottle rigid plastic portion of the mixed rigid bales reported by respondents is calculated for this report by applying 10

Only the plastic portions of the mixed rigid bales are included in the volume; the waste is removed, unlike gross 10

volumes used for most other recycled commodities.




content percentages of resin and product type from the 2014/15 mixed rigid bale composition study. Previous reports back to 2011 used the 2011 study. 11 12

Moore Recycling also asks for data in these categories:

• Post-Commercial Mixed Rigid Plastic - A “catch-all” category for mixed resin rigid plastic that is generated from businesses, defined on a case-by-case basis

• Mixed Electronic Scrap - Primarily high impact polystyrene (HIPS), acrylonitrile butadiene styrene (ABS), polycarbonate (PC)

Detailed Film categories:

• Commercial Clear Film - Clear, clean PE (polyethylene) film, including stretch wrap and poly bags

• Commercial Mixed Color Film - Mixed color PE film, including stretch wrap; no postconsumer bags

• Mixed Film - Mixed color, clean PE film, including stretch wrap and retail collected postconsumer bags, sacks, and wraps

• Curbside Film - Mixed PE film generated at MRFs

• Clean Ag film - Dry and from uses that do not touch the ground; up to 10% contamination

• Dirty Ag film - From the ground; up to 50% contamination • Other film - A catchall for film that does not fit in any of the categories above; mostly

non-PE films such as polyvinyl chloride (PVC), boat wrap film, and bags collected through bottle redemption programs

Data Gaps and Assumptions Participation in the survey is voluntary and the data reported are based on responses received. Many companies have limited resources to put towards participation in the survey and some companies may choose not to respond due to confidentiality policies. Therefore, as there is not 100% participation, the totals presented represent the minimum amount of plastic recovered for recycling and sold into the marketplace. Only data provided by North American reclaimers—predominantly U.S. and Canadian—and exporters selling directly overseas are included in the totals reported, unless it is determined that data are missing in areas where substantive information from other reliable resources is available. Data provided by brokers and MRFs are primarily used as

National Mixed Rigid Plastic Bale Composition Study, Association of Plastic Recyclers (APR), July 201511

National Mixed Rigid Plastic Bale Composition Study & Analysis of Non-Bottle Rigid Plastic Available for Recycling, 12

Association of Plastic Recyclers (APR), 2011




reference to better understand the flow of material, but Moore Recycling may include their data if enough information is provided that would enable us to attribute material sold to a non-responder.

Except for the largest exporters, players in the export market come and go, and may frequently change the materials purchased. This can make the export market difficult to track. Moore Recycling tracks exporters handling plastic through a number of industry resources and most of the large exporters respond to the survey.

Moore Recycling cross-checked the 2014 data with available provincial collection estimates and also referenced Statistics Canada’s estimated national totals. If there were large gaps between the survey responses and other industry data, we conducted additional research to ensure the results represent a reasonable accounting of postconsumer plastic collected in Canada for recycling. For example, as was the case in previous years, the 2014 survey responses from exporters and reclaimers reflected a lower total for curbside film than what the provinces reported as recovered. After additional information was gathered from industry contacts, we added the curbside film data from provincial collection estimates to reflect the minimum amount of postconsumer collected for recycling in 2014.

Again, since participation in the survey is voluntary, Moore Recycling sometimes receives responses from existing companies that did not previously respond. Increases in year-over-year recovery rates are often a combination of increased collection along with material that was recycled in previous years but not reported. When Moore Recycling can conclude the nature of an increase (or decrease), the reasoning is indicated; although, it can be difficult to make a solid determination in any given year, depending on the depth of information Moore Recycling receives from plastic handling companies for previous years and taking into account confidentiality concerns.

Often, Moore Recycling must follow up with responders due to inconsistent placement of data in survey categories. Quality control is essential to determine if there has been an actual shift or just an entry error. Clarification is often needed to determine if material reported can be counted as postconsumer, commercial or is in fact industrial scrap. Mixed rigid bale commodities often require follow up and a data quality check due to the inconsistent terminology used in the marketplace to describe these commodities.

Postconsumer commercial material can be difficult to track because it is often purchased by companies also handling industrial scrap. The survey now specifically includes a detailed section on postindustrial plastic recycling to encourage responses from industrial/commercial scrap recyclers. Having an additional focus on postindustrial recycling, enables us to engage these recyclers about material handled that they may not realize is considered postconsumer—that is, it has met its intended use.




As mentioned, Moore Recycling applied the bale composition results from the 2014/15 study 13

commissioned by the Association of Plastic Recyclers (APR) to the mixed rigid plastic bale volumes reported by responders to arrive at the non-bottle portion of these bales, separated by resin.

When reclaimers do not report capacity volumes, the volume of material acquired is used to estimate capacity.

Findings: Overview In 2014, a minimum of 321 million kilograms of postconsumer plastic was collected for recycling in Canada; a 3% increase over 2013. As expected, most was plastic bottles and the remainder was non-bottle rigid plastic, film and bags, and a small amount of foam. Seventy-eight percent of the plastic was reported as recycled in the US and Canada; yet there was a 10.8 million-kilogram drop in the total volume of material that stayed on-shore. Conversely, exported material and that without a known destination, increased by almost 20 million kilograms over 2013.

Postconsumer Plastic Recycled Year-over-Year (kgs)

National Mixed Rigid Plastic Bale Composition Study, Association of Plastic Recyclers (APR), July 201513


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The Film category made up the majority of the increase for 2014; most of this increase was Curbside Film with a small increase of Commercial Clear Film. The destination of almost 70% of the curbside film is unknown; although, based on 2013 data and the dearth of reclamation capacity for curbside film, it is likely that this material was exported. Because of the lack of reporting for curbside film, we partially rely on provincial data to help account for this category. Bottles, Non-bottle rigid and Foam categories had modest increases in 2014 compared to 2013. As noted, non-bottle rigid recycling represented in this report is likely conservative, particularly the volume reported as resin-segregated non-bottle plastic generated by the commercial sector. This is due to the difficulty in tracking commercial scrap that is combined with industrial scrap. The reported figure for foam recycling is also still understated, since a number of companies do not yet participate in the survey. 14

Postconsumer Plastic Recycling By Major Category Year-over-Year (kgs)

The year-over-year increases represent a combination of increased recovery of material and improved participation in the survey.

Overall, 78% of the material reported was reclaimed in Canada or the U.S. and 17% was exported overseas: a 6% decrease in domestic and a 2% increase in export. The remaining 5% of the total volume of plastic reported is curbside film with an unknown destination, up 4% compared to 2013.

In 2009 and 2010, foam plastic was included in PS reported as non-bottle rigid. Since 2011, foam data has been 14

collected separately in its own section.


Year Bottles Non-Bottle Rigid

Film Foam Total

2009 132,825,000 28,132,000 27,147,000 NA 188,104,000

2010 150,439,000 29,912,000 36,830,000 NA 217,182,000

2011 169,341,000 50,931,000 37,102,000 753,000 14 258,127,000

2012 174,689,000 65,544,000 43,744,000 983,000 284,961,0002013 189,539,000 66,337,000 53,963,000 2,680,000 311,518,0002014 189,321,000 66,763,000 61,772,000 2,880,000 320,736,000



Postconsumer Plastic Recycled Year-over-Year (kgs) 15

U.S. companies purchased approximately 42.3 million kilograms (13%) of postconsumer plastic from Canada for processing in the U.S., down 3% compared to 2013. The material purchased by U.S. reclaimers combined with the plastic exported overseas resulted in 96.4 million kilograms (30%) of postconsumer plastic leaving the country, only a slightly higher volume and 1 percent less than in 2013. Overall purchases by Canadian reclaimers were down by 7.8 million kilograms; Canadian reclaimers purchased 209 million kilograms of Canadian-sourced recycled plastic (65%, down 3% from 2013) and 78 million kilograms of U.S.-sourced plastic in 2014, down 4 million kilograms. Even though the majority of recycled plastic stays in North America, with Canadian and US reclaimer purchases down 10.8 million kilograms and the increase in volumes going export and with an unknown destination, the overall volume reported as staying domestic is the lowest it has been (78%) in the history of this report, which started in 2009.

Findings: Bottles Bottles are collected in Canada through municipal curbside programs, as well as depots and retail drop-off for the beverage deposit systems mandated in most provinces. Each province accepts different types of beverage containers as part of its program and each has a unique collection system. Collection efforts in Canada resulted in 189.3 million kilograms of postconsumer bottles sold into the

15 In 2009 157,140,000 kg of Canadian postconsumer plastic was reclaimed by Canada and the US combined.


Year Exported outside North America

Purchased for processing in Canada

Purchased for processing in US

Destination Unknown

Total

2009 22,168,000 NA15 NA 8,762,000 188,104,000

2010 34,728,000 149,197,000 27,929,000 5,329,000 217,182,000

2011 33,862,000 165,833,000 51,725,000 6,707,000 258,127,000

2012 41,106,000 193,589,000 43,849,000 6,418,000 284,961,000

2013 46,007,000 212,591,000 49,580,000 3,341,000 311,518,000

2014 54,076,000 208,985,000 42,345,000 15,330,000 320,736,000



marketplace for recycling. This represents an increase of 0.3% over 2013. The increases reported were mostly export.

Bottles By Resin Year-over-Year (kgs)

PET Bottles In 2014, approximately 106.5 million kilograms of Canadian-sourced postconsumer PET bottles were reclaimed in Canada and the U.S. and 6.6 million kilograms—6% of the PET bottles collected in Canada—were exported overseas, primarily to China. Most of the PET bottles exported were in PET bottle bales; a tiny amount was in mixed rigid bales. Similar to 2013, Canadian reclaimers purchased about the same volume of Canadian-sourced PET bottles and slightly less U.S.-sourced material; 21.8 million kilograms. US purchases of Canadian material held steady at almost 25 million kilograms in 2014 after nearly doubling from 2012 to 2013.

Capacity and End UsesThere were four PET reclaimers operating in Canada in 2014. The PET bottle collection volume and domestic reclamation capacity continued to be close to equilibrium, although capacity is starting to exceed PET collection volumes. In its Report on Postconsumer PET Container Recycling Activity in 2014, NAPCOR reports that fiber remains the dominant North American end use for recycled PET bottles. Film & sheet swapped places with rPET in food & beverage bottles as the second most common end use in 2014. Strapping, non-food bottles and other products also use recycled PET. The report states that Canadian rPET end uses were up overall with particular growth in sales to North American fiber and strapping producers. 16

HDPE Bottles An estimated 69 million kilograms of postconsumer HDPE bottles were recycled in 2014, a modest increase compared to 2013. Colored HDPE continues to make up the larger percentage of total HDPE bottles recovered for recycling in Canada, at 64% (44 million kilograms). More colored HDPE

Year PET Bottles HDPE Natural Bottles

HDPE Colored Bottles

PP Bottles Other Bottles

2009 88,133,000 13,263,000 27,693,000 3,476,000 261,000

2010 93,857,000 18,800,000 34,846,000 2,664,000 273,000

2011 98,141,000 20,268,000 46,260,000 4,454,000 218,000

2012 103,410,000 21,928,000 44,426,000 4,469,000 457,000

2013 112,817,000 24,166,000 42,502,000 7,346,000 1,709,000

2014 113,116,000 24,954,000 44,062,000 6,564,000 623,000

Report on Postconsumer PET Container Recycling Activity in 2014, NAPCOR & APR 16




bottles were shipped overseas in 2014 compared to previous years (11%, almost 5 million kilograms) resulting in 8% of all HDPE bottles exported overseas, compared to 3% in 2013. More natural HDPE bottles were recycled domestically in 2014, which continues a trend of the past few years.

Of the 69 million kilograms of HDPE bottles recovered in Canada for recycling, 58 million kilograms were recycled in Canada, up from 52 million kilograms in 2013. Canadian reclaimers also purchased 28.3 million kilograms of HDPE bottles from the U.S. for processing in Canada, up slightly compared to 2013: a change, as the purchase of U.S. material had been dropping slightly over the past few years. Only 5.7 million kilograms of Canadian-sourced HDPE bottles were sold into the United States; this is less than half of what U.S. reclaimers have purchased in each of the past three years.

Capacity and End UsesMoore Recycling estimates the 2014 Canadian HDPE bottle reclamation capacity at 100 million kilograms; a slight decrease from 2013, with a key HDPE bottle recycler out of business at year end. Capacity increases by the remaining reclaimers made up for most of the loss. There continue to be reports that a growing portion of this capacity is being used for non-bottle reclamation because the HDPE bottle supply continues to be tight. We calculate a utilization rate of 86% for 2014, up from 72% in 2013. Canadian and U.S. reclaimers continue to report new bottles as the primary end use for reclaimed natural bottles, followed by lumber and decking applications and film & sheet. Pipe continues to be the largest end use for colored HDPE bottles in the U.S. and Canada. In 2014, significant volumes also went into the following end markets: automotive applications, lawn/garden products, new bottles, and film & sheet.

PP and Other Bottles A minimum of 6.6 million kilograms of postconsumer PP bottles were reported as recycled in 2014, down from 7.3 million kilograms reported in 2013. This decrease was a combination of slightly fewer PP bottle bales reported, and the reallocation of the amount of each resin type found in mixed rigid plastic bales; the reallocation is based on the most recent mixed rigid bale composition study completed in 2014/15. About 7.3% of PP bottles were exported overseas as part of mixed rigid bales. U.S. reclaimers reported buying a significant volume of Canadian-sourced PP bottle bales in 2014.

LDPE, PVC and other bottles made up 623 thousand kilograms of the total material in this report, down from 2013 because the reallocation of the volume with the updated bale composition data. The Canadian reclaimers handling mixed resin bales can handle the non-olefin (PVC or Other #7) minority resin bottles in one of a few ways: either disposing of them, selling them (if a domestic or export market is available) or, in some cases, providing the material to waste-to-energy facilities.




The survey asked reclaimers reporting mixed rigid bales whether they utilized all of the material or disposed of, sold or otherwise provided any portion of it to another reclaimer, exporter, broker or intermediate processor. No bottle material was reported as disposed or sold.

Capacity and End UsesDue to limited data sources, information on PP reclamation capacity is not available. Recycled PP bottles are used to manufacture automotive applications, crates and buckets, caps and closures or items such as lawn and garden furniture.

Findings: Non-Bottle Rigid Plastic In 2014, 66.7 million kilograms of non-bottle rigid plastic were reported as reclaimed or exported. This represents an increase of almost 1% over the volume reported for 2013.

Non-Bottle Rigid PlasticBy Source

“Pre-picked Rigid” combines the “with” and “no” bulky categories of each. “Other Mixed Rigid” includes data provided as Mixed Post-Commercial, Other Mixed Rigid Plastic and any mixed rigid bale categories with less than 800 thousand kilograms reported.

Non-bottle rigid plastic segregated by resin increased by 1.8 million kilograms, to almost 37 million kilograms, making up 55% of the non-bottle rigid material reported. Mixed rigid plastic making up the other 45% was down by 1.4 million kilograms from 2013 to just under 30 million kilograms. Pre-picked Rigid Plastic made up 58% of the mixed rigid material reported in 2014. This is the second year that mixed rigid plastic has decreased and segregated resin has increased.




In 2014, 71% of all non-bottle rigid plastic was reported as purchased by domestic markets (Canadian or U.S. reclaimers)—down 15% from 2013. The majority (82%) of non-bottle plastic segregated by resin stayed domestic, whereas domestic purchases of mixed rigid bales went back to the 2011 level of 56%, compared to 89% in 2013, and 72% in 2012. U.S. reclaimers purchased a small volume of Canadian-sourced mixed rigid bales and resin-segregated material, for a combined volume of 7.5 million kilograms of non-bottle material, up slightly from 2013. The increase in mixed rigid bale exports overseas could be due in part to a rebound from China’s Green Fence: a 2013 enforcement effort to control postconsumer scrap imports into China as well as the market shift from one reclaimer going out of business.


0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

40,000,000

Mixed-Rigid

Segregated

Mixed-Rigid

Segregated

Mixed-Rigid

Segregated

Mixed-Rigid

Segregated

Mixed-Rigid

Segregated

Mixed-Rigid

Segregated

2009 2010 2011 2012 2013 2014

Domestic-(Canada-and-U.S.) Export-Overseas

Non-Bottle Rigid Domestic and Export Markets (kg) (Mixed Rigid vs Segregated By Resin)



Consistent with previous years, PP and HDPE make up the majority (64%) of the non-bottle rigid plastic recovered in Canada. PET is the next largest percent at 19% of the non-bottle reported. The PET non-bottle material in this report is from PET bottle bales and mixed rigid bales. The category “Other” made up just over 13%, double what it was in 2013, and representing the largest increase in non-bottle volume by resin. “Other” consists of other mixed rigid plastic material reported without the detail needed to break it down by resin, and it also includes the other resins from mixed rigid bales.

Non-Bottle Rigid Plastic By Resin Year-over-Year (kgs)

Data from the report 2014/15 National Mixed Rigid Plastic Bale Composition Study performed by Moore Recycling Associates for APR were applied to arrive at the resin breakdown for 2014. Previous years used data from the

2010/2011 National Mixed Rigid Plastic Bale Composition Study.


2009 2010 2011 2012 2013 2014

PET 2,460,000 1,667,000 5,101,000 5,703,000 12,870,000 12,670,000

HDPE 10,778,000 10,256,000 12,798,000 22,089,000 21,940,000 17,706,000

PVC 924,000 1,359,000 271,000 1,342,000 1,412,000 650,000

LDPE 400,000 328,000 185,000 523,000 462,000 269,000

PP 10,764,000 6,933,000 21,790,000 23,248,000 24,820,000 25,288,000

PS 903,000 1,173,000 273,000 803,000 926,000 1,288,000

Other 1,902,000 8,195,803 10,513,000 11,836,000 3,907,000 8,892,000

Non-Bottle Rigid Plastic By Resin

LDPE <1%



The increase in the “Other “ category is because of mixed post commercial material that was reported undefined by resin. PP and PS had minor increases. All other resins had a decrease, because of the reallocation of the volume from the updated bale composition data, which included an increase in trash for the Pre-Picked Rigid: No Bulky bale, the most reported category.

Almost 7 million kilograms included in the non-bottle rigid fraction of the mixed rigid bales reported by domestic reclaimers is non-olefin plastic (PET, PS, PVC, Other). The survey asked reclaimers reporting mixed rigid bales whether they utilized all of the material or disposed of, sold or otherwise provided any portion of it to another reclaimer, exporter, broker or intermediate processor. Those that responded to this question said they utilized all of the material they purchased from U.S. and Canadian sources.

Capacity and End UsesA conservative estimate for non-bottle rigid plastic reclamation capacity is 115 million kilograms per year, an increase of 5 million kilograms since 2013. Similar to the HDPE bottle capacity, even though a key reclaimer was out of business at year end, capacity increases by the remaining reclaimers made up the difference and a little more. It should be noted that this capacity does not include a substantial amount of commercial/industrial scrap grinding and compounding capacity. An estimated 58% of non-bottle rigid plastic reclamation capacity was utilized in 2014, down from 72% in 2013.

Recycled non-bottle rigid plastic is commonly used in automotive applications, crates, buckets, lawn & garden products and pipe, as well as in film and sheet. Other uses include various consumer and household products, lumber and decking, and fence posts.

Findings: Film and Bags In 2014, a minimum of 61.8 million kilograms of postconsumer film and bags were collected for recycling, showing an increase of 14% for the film category compared to 2013. Curbside Film had the greatest increase of 5.7 million kilograms, followed by Commercial Clear Film with an increase of almost 2 million kilograms. Commercial Mixed Color Film, Clean Ag Film and Dirty Ag Film also increased, although less significantly. Mixed film (includes retail or depot drop-off collected postconsumer bags and film) and Other film both decreased by close to 1 million kilograms in 2014 compared to 2013.




The destination of 25% of the film recovered in 2014 is unknown, up from only 6% in 2013 and 14% in 2012. The film with destination unknown is curbside film known to be recovered based primarily on provincial data. Provincial data shows curbside film collection continues to increase steadily, although there are discrepancies between the provincial data and what is reported by reclaimers and exporters. In order to report an accurate recycling total, we included collection data from provinces, along with appropriate survey responses. The destination (e.g., domestic, export) of material is reported where possible, but because we were unable to get responses from all exporters, the destination of a portion of curbside film is unknown. Based on 2013 responses and the lack of domestic capacity for curbside material, it is likely the majority of the unknown material went export.

Film By Source Year-over-Year (kgs)

Beginning in the 2011 survey, Mixed Film was broken out into Commercial Mixed Color Film (no postconsumer bags) and Mixed Film (includes postconsumer bags, sacks and wraps). The amount of Commercial Mixed Color Film reported above for 2010 and 2009 was

previously reported under Mixed Film and may include some postconsumer bags.

Commercial Clear Film is by far the most valuable film in the marketplace. This is clean PE film, including stretch wrap and poly bags, recovered by the commercial sector from transportation and

Year Commercial Clear Film

Commercial Mixed

Color Film

Curbside Film Mixed Film Clean Ag Film

Dirty Ag Film

Other Film

2009 6,869,000 6,371,000 12,210,000 NA 1,477,000 181,000 38,0002010 13,537,000 7,103,000 12,371,000 NA 933,000 33,000 2,853,0002011 13,820,000 3,273,000 13,211,000 991,000 5,357,000 235,000 215,0002012 15,681,000 5,468,000 14,395,000 3,117,000 4,257,000 64,000 762,0002013 23,768,000 4,104,000 16,658,000 4,156,000 4,257,000 41,000 980,0002014 25,687,000 4,865,000 22,363,000 2,965,000 4,711,000 963,000 219,000


Film By Source



other packaging. After Commercial Clear Film, the most valuable is Commercial Mixed Color Film, then Mixed Film, which again includes retail or depot drop-off collected postconsumer bags and film. While the bag and film material collected at retail drop-offs from the public is much cleaner than film collected curbside and sent through MRFs, it also has color and varying consistency in quality, depending on the program’s quality control, that can reduce its market value. Clean Ag Film is from agricultural uses where it does not touch the ground; it is dry, with up to 10% contamination. Curbside Film and Dirty Ag film (ag film that has touched the ground and has up to 50% contamination) are harder to recycle because they require a wash stage or an end product that can handle the contamination. Fewer than 5 U.S. and Canadian companies are able to process curbside film. Processors of postconsumer material collected curbside continue to express concerns about contamination from glass (and other abrasive material) and non-polyethylene plastic. Nearly all reclaimers expressed concern about the presence of PP and other non-polyethylene film in the recycling stream.

The data reported shows a minimum of 41% of recovered postconsumer film is being processed by Canadian or U.S. reclaimers, down just under 2% compared to 2013. U.S. reclaimers purchased 3% (1.9 million kilograms) of the film plastic recovered in Canada, a slightly lower percentage than in 2012 and 2013. Canadian reclaimers purchased less from the U.S. than in the past, only 500 thousand kilograms in 2014, compared to 3 million kilograms in 2013 and 5 million kilograms in 2012.

The export market has historically been a major buyer of film coming out of the U.S. and Canada. In 2014, a minimum of 34% of the recovered film was exported overseas, down from 51% in 2013. The main categories exported in 2014 were Commercial Clear Film, Mixed Color Film, Curbside Film and to a lesser degree Dirty Ag Film. Very little of the remaining material was exported, including Mixed Film. It is possible that we are either missing significant amounts of commercial film that is being recycled, but is not yet reported, material that could be collected and marketed as Commercial Film is ending up in MRFs and counted as Curbside Film given its contamination level, or there are opportunities to expand commercial film recycling in Canada.

Capacity and End UsesFor 2014, Moore Recycling estimates the film and bag reclamation capacity in Canada at 58 million kilograms, a slight increase over 2013; capacity utilization was 40%, down from 44% in 2013. Most of the capacity in Canada is for clean, clear commercial film and only a smaller amount for postconsumer retail or curbside film. The major end use for recycled film in Canada is new film & sheet, unlike the U.S., where the lumber and decking market continues to be the largest consumer. Additional end uses in Canada (and the U.S.) reported in 2014 are automotive applications, crate and buckets and lawn and garden products.




Findings: Foam In 2014, a minimum of 2.9 million kilograms of foam was recycled. Most of it—2.7 million kilograms—was foam polystyrene, predominantly from protective packaging, which is expanded polystyrene (EPS). Seventy-one percent of the Foam PS reported was processed domestically. The Foam PS total was up 177 thousand kilograms from 2013. While we have received more responses from domestic reclaimers in the past few years, there are still a number of companies that do not respond to the survey, so the total collected may be under reported. Very small volumes of other foam categories were reported; all the Expanded Polypropylene (EPP) collected was recycled domestically and the Rigid Polyurethane and Other foam was reported as exported overseas.

The use of densification equipment to compress foam has enabled efficient transport to markets in Canada, the U.S. and overseas. Sources of recycled Foam PS include commercial generators, depot operations (both municipal and private) and curbside collection programs.

Capacity and End UsesFoam PS is recycled into fire protection products, crown moldings and decorative frames for mirrors, pictures and wall hangings. Due to the limited number of reclaimers responding for domestic reclamation of Foam PS, no additional information is available.

Conclusions Postconsumer plastic collected in Canada increased again to a minimum of 320.7 million kilograms, an increase of 9 million kilograms over 2013. Year-over-year the data continues to show the vast majority of the material collected for recycling in Canada is staying in Canada for reclamation and remanufacture. Support of sustainability and recycling goals in Canada has led to domestic markets for most plastic scrap types and a low dependence on the export market.

Additional Information The Canadian Plastics Industry Association provides resources to communities, businesses and consumers to assist in increasing awareness and education of the recycling of plastic packaging and diversion from Canadian landfills. For information about plastics recycling, visit www.plastics.ca. For information on markets for postconsumer plastic, visit www.PlasticsMarkets.org and www.PlasticFilmRecycling.org.

The 2014 Postconsumer Plastics Recycling in Canada report has been prepared to provide information to parties interested in the recycling of plastics in Canada. This report is not designed or intended to define or create legal rights or obligations. CPIA does not make any warranty or representation, either expressed or implied, with respect to the accuracy or completeness of the information contained in this report; nor does CPIA assume any liability of any kind whatsoever



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resulting from the use of or reliance upon any information, conclusion, or options contained herein. The Canadian Plastics Industry Association sponsored this report.

This work is protected by copyright. The Canadian Plastics Industry Association, which is the owner of the copyright, hereby grants a nonexclusive royalty-free license to reproduce and distribute this report, subject to the following limitations: (1) the work must be reproduced in its entirety, without alterations; and (2) copies of the work may not be sold.



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