BIR: Low Margins, High Costs and Market Challenges Threaten Plastic Recyclers

SEATTLE (Scrap Monster): The low pricing of virgin materials and the sluggish demand are still having an impact on the profitability of plastic recyclers, according to the Bureau of International Recycling (BIR). In general, the plastic recycling sector is seen to be confronted with many obstacles, with numerous enterprises finding it difficult to survive.

The market assessment is released right before the BIR World Recycling Convention, which is scheduled for late October in Singapore.

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The main challenges facing recycling companies, according to the trade association, are low profitability, high energy costs, and rising loan rates. Although there have been increases in processing capacity investments, the market has been unenthusiastic for some time. The competition from low-cost virgin plastics and the updated Waste Shipment Regulation have further complicated the situation.

The Plastics session in Singapore, chaired by Divisional President Henk Alssema will address the above topics.

Steve Wong, Executive President of the China Sustainable Plastics Association (CSPA) will give a presentation on WEEE recycling. Alev Somer, Trade and Environment Director at BIR will provide an overview of the International Plastics Treaty during the summit. Max Craipeau, CEO of Hong Kong-based Greencore Resources Ltd. will update on the current recycling situation in Southeast Asia.

Also, Bashar Ehsan Gadawala, Director of Operations at ALA International FZE will participate in the panel discussion, which will be chaired by Henk Alssema.