Plastic scrap gains as prime prices rise

By Surendra Borad Patawari of Recycling International

Larger converters still have to realise the value of using plastic scrap.

2021 started with uncertainty in the trading of plastic waste worldwide because many countries did not adopt the new Basel Convention rules when they came into force on 1 January. There was an absence of information from importing nations about how localised legislation was being updated. They appeared to be unable to respond to the queries sent by countries looking to export plastics scrap about how to secure consent to trade between their two countries.

There was enormous concern from those in the European market that this movement of plastic might have to end because the rules were unclear. In 2019, Europe exported over 1.85 million tonnes of recyclable plastic scrap and this volume was at stake due to this uncertainty.

EU GUIDANCE

The European Commission published guidelines about how green-listed waste could be traded within Europe under the new Basel Code EU3011 and within OECD countries under the new code B3011. The guidance also mentioned WSR 1418/2007 by which shipments to non-OECD countries are subject to a notification process. The Commission is expected to update the WSR shortly to establish rules and regulations under which traders in member states can export plastic scrap to non-OECD countries.

Most European countries resolved to stop the export of plastic scrap to non-OECD countries, increasing fears that the trade would slow down substantially, resulting in lower prices for plastic scrap.  On the other hand, the prime plastic market worldwide enjoyed high demand as national economies recovered well during January.