BIR indicates weakness in Chinese plastics market

The Chinese scrap plastics market is “weaker than expected” in 2010 despite maintaining an integral position in the global plastics recycling industry, according to the Bureau for International Recycling.

The comments came at the Bureau of International Recycling's plastics committee round table event in Brussels last month, where it head how buyers in the Chinese market had taken a “wait-and-see policy” position with regards to plastics exports over the course of the past 12 months.

Jacques Musa of Veolia Propreté France Recycling told the plastics committee that this position was caused by a number of factors. This included a tightening of customs controls and fluctuating exchange rates.

Further to this, Mr Musa said that the development of prime polyethylene production, energy-saving restrictions and high labour costs had also played a part in the Chinese market not taking a stronger position in the market place over the course of the year.

However, Mr Musa did stress the importance of the Chinese market in the plastics sector. He pointed to the fact that 3.14 million tonnes of plastic scrap had been imported into China in the first five months of this year.

“Tremendous”

Opening the discussions, Surendra Borad, chairman of the Bureau of International Recycling (BIR) plastics committee and Belgium-based Gemini Corporation, stressed that there was a “tremendous” opportunity for the global plastics recycling market given new regulations, increased public support and resource conservation fears.

Mr Borad told the committee that green issues had become “increasingly popular” and said that it was becoming the “most obvious solution” given the issue of resource scarcity.

Looking at growing markets, Mr Borad claimed that there had been development in India, with it predicted that plastic consumption would rise from 6kg per person closer to the world average 27kg per person.

Although, Mr Borad noted a “significant” decline in plastics consumption in the weeks leading up to the round table event in Brussels.

Elsewhere, speakers discussed issues surrounding the export of material. Peter Daalder of Daly Plastics in the Netherlands complained about the substantial additional costs entailed by the increased frequency of container scans at ports.

And, Dirk Segers, managing director of Belgium-based Marsh SA, stressed the need for exporters to reevaluate risks on a regular basis in order to ensure optimum insurance cover. He also urged exporters to “know your customers” and to gain an understanding of shipping-related issues that may apply to their country or region.