PET Container Recycling Declines
Chuck Heschmeyer | October 20, 2016Postconsumer PET container recycling in the U.S. declined about 1% in 2015, according to figures from the National Association for PET Container Resources and the Association of Plastic Recyclers. The drop most likely reflects poor recycling market conditions as well as the impact of lightweighting bottles, the report says.
The price per bale of recycled PET bottles has fallen to near record lows. Nearly 6 billion pounds of PET bottles were sold in the U.S. in 2015. Some 1.797 billion pounds were collected through recycling programs and sold domestically or abroad, representing a recycling rate of 30.1%. That was down from the 1.812 billion pounds, or 31%, collected and recycled in 2014, the report says.
In addition to poor market conditions that may have caused certain commercial collectors to reduce or eliminate recycling collections, the report says other contributing factors likely included the continued impact of lightweighting, downsizing of single-serve beverage containers, and reduced sales of carbonated soft drinks.
In terms of lightweight water bottles, the report says that industry data suggests that these bottles are more likely to be lost or misdirected in a materials recovery facility. A portion of these bottles that were initially separated for recycling may not have made it to the PET bale for sale to reclaimers.
U.S. reclaimers decreased their purchases of U.S. bottles by 25 million pounds, or 1.8% in 2015 compared to the prior year. This drop was offset, however, by Canadian reclaimers who increased their purchases of U.S. bottles last year to 75 million pounds, up from 45 million pounds in 2014.
As for pricing, PET bottle bale prices fell in the U.S. last year. The average price per pound of baled material fell to average lows of $0.05 to $0.09, down from the mid to high teens reached in the fourth quarter of 2014. This is the steepest fall in prices since the market collapse of late 2008 and early 2009, the report says.
The report blamed the price decline on a combination of market factors including falling oil prices, excess virgin PET supply globally, and a softening of Asian and other global economies.