DATE: October 25, 2017 TO: Waste Management Authority Board FROM: - PDF document

DATE: October 25, 2017 TO: Waste Management Authority Board FROM: Tom Padia, Deputy Director SUBJECT: Recycling Markets Update SUMMARY At the October 25 WMA meeting, two guest speakers will discuss the current state of markets for recycled materials, especially in light of recent actions by the Chinese government (“National Sword”). Michael Peltz is Materials Marketing Manager at Waste Management Recycle America (and a Recycling Board member) and has worked in international recycling sales, trading and mill supply for the last 27 years. Evan Edgar has been involved in the California solid waste and recycling field for the last 33 years as a solid waste engineer, lobbyist, and project development consultant. DISCUSSION Recent announcements and actions by the Chinese government aimed at restricting the levels of contamination in imported recycled commodities and the level of such imports overall have caused turmoil and uncertainty in secondary commodities markets, especially for mixed grades of scrap paper and plastics but even for higher grades such as Old Corrugated Containers (OCC). Trade organizations such as the Solid Waste Association of North America (SWANA), the Institute of Scrap Recycling Industries (ISRI), the National Waste & Recycling Association (NWRA) and others have filed comments with the World Trade Organization or taken other public actions to try to bring more clarity and stability to this volatile situation. Potential impacts could be sustained lower revenues to municipal recycling programs and even the possibility of no markets at all for some processors at certain times for some lower grades such as mixed paper, and small and large mixed rigid plastics. Attached to this memo are a recent letter issued by SWANA to state governments on this topic, and a recent newsletter, “Bale Out,” published by Edgar & Associates. Speakers will discuss current dynamics, trends and impacts of National Sword, and what, if anything, local governments and haulers can do to help their recycling programs survive and thrive in the times ahead. RECOMMENDATION This item is for information only. Attachment A: SWANA letter dated October 11, 2017 Attachment B: Edgar & Associates October 2017 “Bale Out” Newsletter