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2015 Rate Report

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2015 Rate Report 2015 PET Recycling Rate Report Register for Upcoming Webinars! Today’s Presenters Kate Eagles NAPCOR Program Director Kara Pochiro APR Communications Director SteveResa DiminoAlexander APRNAPCOR Executive Director of DirectorPublic Policy Steve Alexander APR Executive Director Rick Moore NAPCOR Executive Director Agenda & Acknowledgments • Deep dive into 2015 PET recycling rate and supporting data • Jointly released by NAPCOR and the APR • Thanks to the following data providers, funders, and contractors: – PET Reclaimers and Converters – Providers of additional market data and perspectives – Consulting support from Moore Recycling Associates and HDR Who is APR? International trade association The Voice of Plastics Recycling® Companies committed to the success of plastics recycling Technical Authority on Plastics Recycling Technical Programs APR Design®Guide for Plastics Recyclability Test Methods/Guidance Protocols Brand Owner Training APR Committees Communication/Education/Advocacy APR Primary Goals Increase Enhance Communicate Supply Quality Value Increase the Value Proposition of Recycled Plastics Introduction to NAPCOR • NAPCOR is the trade Container PET association for the PET Producers Reclaimers packaging industry in the United States, Canada and PET Suppliers to Resin the PET Mexico Producers Industry • 52 members encompass all facets of the PET value chain Sheet & Thermoform Producers NAPCOR Membership 2016 PET Industry Suppliers PET Container Manufacturers American Starlinger-Sahm, Inc. Nissei ASB Company Amcor Rigid Plastics AMUT North America, Inc. Penn Color Plastipak Packaging, Inc. BP Plastic Technologies, Inc. Yoshino America Corporation ColorMatrix Polymetrix Erema North America REPI Husky Injection Molding Systems Sidel Inc. PET Sheet / Thermoformers Krones Inc. Sorema Plastic Recycling Sys. Muehlstein Sukano Polymers Corporation Dart Container Corporation National Recovery Technologies TABB Packaging Solutions, LLC Direct Pack, Inc. TOMRA Systems ASA Genpak LLC Nu-B, Inc. PET Reclaimers Octal Extrusion Corporation Polar-Pak, Ltd. BMP Recycling PetStar Peninsula Packaging Company CarbonLite Industries, LLC Plastic Reclamation Partners Plastic Ingenuity, Inc. Clear Path Recycling, LLC Plastrec, Inc. Custom Polymers PET Polyquest, Inc (PQ Recycling) Evergreen Plastics QRS Recycling PET Resin Manufacturers Marglen Industries Reterra Mohawk Industries Inc. Signode DAK Americas LLC Parallel Products UltrePET LLC Indorama Ventures USA Inc Peninsula Plastics Recycling Wellman Plastics Recycling, LLC Nan Ya Plastics Corporation Perpetual Recycling Solutions 4 PET Materials Flows in the US Disposal US PET Bottles Available (5,971) Total US Bottles Recycled (1,797 Clean Flake (1,044) RPET Use in Domestic Markets (1,421) Promoting and Protecting the PET Package 3 2015 PET Bottle US Recycling Rate 1.797 Blbs Bottles Collected = 30.10% 5.971 Blbs Bottles Available 2014 rate at 30.98% 2015 PET Bottle Denominator Volume of bottles sold into the US marketplace: • Approximate 2.1% growth over 2014 by weight • Total bottles available – 5,971 MMlbs (2014 was 5,849) Factors Affecting 2015 Denominator • Denominator includes domestic virgin and RPET resin sales into bottles, as well as imported resin to bottles • Volume sales up in water, specialty beverages • Conversion into PET Factors Affecting 2015 Denominator • CSD sales down; lightweight water bottles don’t make up the difference • Bottle down-sizing (“right” sizing) continues Factors Affecting 2015 Numerator • Increase in CA CRV • Slight decrease in other deposit • Small decline in curbside/drop off volumes, possibly due to: – Reduction in market-driven commercial collections – Misdirection of lightweight PET bottles in MRFs 2015 Numerator by Purchaser (MMlbs) 2009 2010 2011 2012 2013 2014 2015 US Reclaimers 642 776 916 1,135 1,329 1,398 1,373 Canadian Reclaimers 54 44 55 54 47 45 75 Other Export 796 737 633 528 422 369 349 Total 1,492 1,557 1,604 1,718 1,798 1,812 1,797 2015 Numerator by Purchaser • US Bottles Collected for Recycling (MMlbs) 2000 1500 Exporters 1000 Canadian Reclaimers US Reclaimers 500 0 2009 2010 2011 2012 2013 2014 2015 PET Bottle Recycling Rate History Total US Bottles on Gross Year Bottles US Shelves Recycling Collected (MMlbs) Rate (MMlbs) 2004 1,003 4,637 21.6% 2005 1,170 5,075 23.1% 2006 1,272 5,424 23.5% 2007 1,396 5,683 24.6% 2008 1,451 5,366 27.0% 2009 1,444 5,149 28.0% 2010 1,557 5,350 29.1% 2011 1,604 5,478 29.3% 2012 1,718 5,586 30.8% 2013 1,798 5,764 31.2% 2014 1,812 5,849 31.0% 2015 1,797 5,971 30.1% PET Bottle Recycling Rate History 7,000 35% 6,000 30% 5,000 25% Bottles on US Shelves 4,000 20% (MMlbs.) 15% Total US Bottles MMlbs 3,000 Collected (MMlbs.) 2,000 10% Gross Recycling Rate 1,000 5% 0 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Promoting and Protecting the PET Package PET Bottle Utilization Rates • Bottle utilization is USA “bottle only” flake volumes produced as percentage of denominator Includes clean flake from US sourced bottles, both domestic and export 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 0.0% 5.0% 2001 2002 PET Recycling Utilization / Rates 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Utilization Rate Recycling Rate Clean Flake Production Rates by Collection Source 2012 2013 2014 2015 Curbside 65% 69% 67% 70% Deposit 75% 75% 73% 80% CA CRV 71% 77% 74% 74% Note: Clean flake production (material utilization) rates are not true measures of yield due to the impact of fluctuations in inventory and in use of dirty flake vs. bottle bale inputs. 2015 Bale Price, East Coast Average (picked up) East Coast East Coast average low average high January $.13 / pound 0.16 / pound February .115 0.150 March .105 0.135 April .105 0.135 May .105 0.135 MONTH June .110 0.140 July .115 0.145 August .110 0.135 September .090 0.120 October .050 0.090 November .055 0.090 December .065 0.090 Reclamation Capacity 2015 – Major Assets USA 3000 30 2500 25 2000 20 1500 15 Number of Plants 1000 10 Reclamation Capacity (MMlbs.) 500 5 0 0 Dec. '04 Dec. '05 Dec. '06 Dec. '07 Dec. '08 Dec. '09 Dec. '10 Dec. '11 Dec. '12 Dec. '13 Dec. '14 Dec. '15 Dec. PET Reclaimer Plant Utilization Rates • Plant utilization for 2015 at approximately 62%, for USA based on total PET “pounds in” of 1,548 million pounds and end 2015 capacity of 2,495 million pounds. Source Million Pounds US Bales and DF 1,373 Mexico, Canada, Other 82 Bales and DF Non-Bottle Material, including thermoforms, 93 strapping, pre-consumer, other TOTAL 1,548 Postconsumer Bottles Recycled / Used by Reclaimers (MMlbs) US US Postconsumer Postconsumer Postconsumer Bottles Bottles Bottle Imports Purchased by Purchased by Exporters US Reclaimers 82 424 1,373 Total US Total Postconsumer Postconsumer Bottles Bottles used Recycled by US Reclaimers 1,797 1,455 Promoting and Protecting the PET Package Postconsumer Bottles Recycled / Used by Reclaimers Total US Postconsumer Bottles Total Postconsumer Bottles Recycled used by US Reclaimers 2000 2000 1800 1800 1600 1600 1400 1400 Postconsumer Bottle Imports 1200 1200 1000 1000 Purchased by Exporters 800 800 600 600 400 400 200 Purchased by US Reclaimers 200 Purchased by US Reclaimers 0 0 Gross Weight Purchases (MMlbs) Purchases Weight Gross Gross Weight Purchases (MMlbs) Purchases Weight Gross 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Promoting and Protecting the PET Package Production of PET Flake from Bottles in 2015 (MMlbs) RPET RPET Produced Clean Flake Produced by by US Equivalent US Reclaimers Reclaimers from US from Imported from US Bottles Bottles Bottles Exported 69 1,001 296 Total US Total Clean Reclaimer Flake Produced RPET from US Production Bottles from Bottles 1,297 1,070 Promoting and Protecting the PET Package Production of PET Flake from Bottles in 2015 Total Clean Flake Produced from Total Clean Flake Production US Bottles from US Reclaimers 1400 1400 1200 1200 RPET Produced by 1000 1000 US Reclaimers from Imported Bottles Clean Flake Equivalent 800 Clean Flake Equivalent from 800 from US Bottles Exported 600 U.S. Bottles Exported 600 MMlbs MMlbs 400 400 RPET Produced by US Reclaimers RPET Produced by US Reclaimers 200 from US Bottles 200 from US Bottles 0 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Promoting and Protecting the PET Package Clean Flake Production 2015 (All feedstock MMlbs) Produced by 2009 2010 2011 2012 2013 2014 2015 US Reclaimers 583.8 666.5 685.9 930.3 1,243.4 1,237.7 1,044.1 Canadian Reclaimers 136.5 124.8 134.6 153.1 173.3 191.1 202.4 Total 720.3 791.3 820.5 1,083.4 1,416.7 1,428.8 1,246.5 Clean Flake Production 2015 (All feedstock MMlbs) 1600 1400 1200 1000 Canadian Reclaimers 800 US Reclaimers 600 400 200 0 2009 2010 2011 2012 2013 2014 2015 End Markets • RPET demand down about 9 percent in total • Fiber uses dropped most significantly (102mm lbs/16%) possibly due to low virgin prices driving price-sensitive customers from RPET • Food & Bev bottle markets steady; Non-Food up more than 5% • Sheet/Film down 5%, Strapping down 16% End Markets • Total package application use slightly down from 2014 at 758 million pounds (vs. 773 million) • Imported rPET material up over 2014, to approximately 174 million pounds RPET Product Categories (MMlbs) Product Category 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Fiber 463 422 383 391 344 381 398 512 558 638 535 Sheet & Film 71 74 128 153 159 195 202 307 315 365 347 Strapping 131
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