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AQSIQ

Happy New Year | Year of the Dragon 2012

| Recycling | 02/03/2012

Chinese New Year is officially over and it’s now the year of the DRAGON! First, I want to wish all the readers and supporters of recycledplastic.com a happy new year and wish everyone a successful business for 2012! 2011 has been a great year for me and I’m crossing my fingers that 2012 will be even better. For those that know me personally, I’m having another child (and I just found out it is going to be another boy).

The end and beginning of each year always has detrimental effects on the plastic recycling trade in China. For all those dealing with companies in China, October to February is always going to be rocky. This is because there is a week long holiday in October (National Week), Christmas and New Year in December, and Chinese New Year in January/February. On top of all the national holidays, environmental licenses expire on December 31st making the import of recycled goods unstable and usually more expensive. Its therefore important to time your shipments so you don’t accrue unnecessary fees at the ports.

Even now, environmental license quotas are tight and the government has increased the necessary paperwork required to renew licenses. The Chinese government is doing its job for making the average trader suffer, yet rewarding the larger, more established recyclers.

As the year just started, plastic prices is still somewhat unstable and while buyers have already come to my facilities to purchase, I still waiting for prices to settle before selling inventory. The plastic market recovers a bit now and peaks between March and June. When summer hits, electricity becomes an issue and some manufacturers are placed on schedules where they get electricity only 3-4 days out of the week. With this being said, it’s the perfect time to setup long term deals now and I’m already crossing my fingers for some of my larger deals to go through!

Lastly, I want to end by saying that I’ve learned a lot in 2011 and have learned some very valuable lessons. If you’re new to the recycling business, don’t give up, you’ll get there someday. Be smart, learn from your mistakes, try a new direction, and cross your fingers.

The Life Cycle of Recycled Plastic

| Recycling | 01/29/2012

Pretty much everyone is going green these days, and thus, more value is placed on products made of recycled material. And among recyclable products, plastic has got to be the easiest to recycle since it doesn’t degrade like organic materials — you can either find new uses for any existing plastic bags and containers you may have, or send these products to a recycling plant to be remade into ‘new’ material. But have you ever wondered just what happens behind closed doors of a plastic recycling plant? Just what takes place to make something as seemingly indestructible as plastic into something new?


In an article by Heather Wansbrough and David Yuen on plastics recycling, they give us a quick rundown of what happens to plastic products in a recycling plant:

The 5-Step Plastic Recycling Process

  1. Collection – Recycling facilities gather available recyclable material in their area, and from roadside collections, special recycling bins, or even directly from industries, post-consumer and post-industrial plastic items are collected.
  2. Manual sorting – All items that are collected are then sorted according to the types indicated by the recycling symbols and codes on them. Unnecessary non-plastic materials found in the piles are promptly taken out.
  3. Chipping – After sorting, the plastic products are prepared for melting by being cut into small pieces. The sorted plastic items are then fed into a machine which has sets of blades that slice through the material and break the plastic into tiny bits.
  4. Washing – At this step, all residue of products originally contained in the plastic items and various other ‘contaminants’ (e.g. paper labels, dirt) are removed. A particular wash solution consisting of an alkaline, cationic detergent in water and a wash tank are used to effectively get rid of all the contaminants on the plastic material, making sure that all items are clean and ready for the final step. During washing, the wash tank agitator serves as an abrasive, stripping the adhesive off any labels and shredding any paper mixed in with the plastics. An alkaline, cationic detergent (which is similar to the formulas used in shampoos and fabric softeners) is used for the task of washing plastics because plastic materials have a positive surface charge, and only positively-charged chemical compounds (which in this case are cationic detergents) can properly clean them, effectively removing dirt and grease.
  5. Pelleting – The chipped pieces of plastic are then melted down and put through a machine called an ‘extruder’. The extruder shapes the melted plastic into thin noodle-like tubes. The plastic tubes are then cut into small pellets by a set of rotating knives, which are then ready to be reused and remade into new items.

In the bag

Plastic bags go through the same five-step process as other plastic products, and are also washed and rinsed according to their plastic types. These also go through a ‘chipping’ stage, but in the case of plastic bags, these are chopped rather than chipped. The chopped shreds of plastic bags are then melted down accordingly to go through the pelleting stage.

What’s next?

The recycled plastic pellets are usually sold by the recycling company to other businesses which would then mold the plastic pellets into an assortment of products for various uses. Some products use a combination of recycled plastic pellets and virgin plastic ones. Though people tend to go for fully virgin plastic when available, the value of recycled plastic is undeniable, because recycling cuts down on landfill contribution and the process creates an avenue to reuse plastic, which is a non-renewable resource, which in turn reduces the rate of pollution and promotes overall wellness.

PlasticPlace.com believes in using recycled material in their products, and the company aims to popularize the idea of reusing and recycling through their own unique line of garbage bags made with 80% recycled material (10% of which is post-consumer, 70% post-industrial).

Plastic Recycling Forum

| Recycling | 11/25/2011

Plastic Recycling Forum

After spending several weeks developing and fine tuning the forum, the Plastic Recycling Forum is finally ready for public use! The goal of putting this forum together is to bring together enthusiasts and professionals to discuss topics, latest trends, and knowledge related to plastic recycling, plastic scrap, and recycled plastics. As plastic recycling is becoming an international concern, it’ll be great to hear what YOU have to say about new regulations, news, methods and technology.

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2011 Resources Recycling Industry Exhibition

| Recycling | 09/15/2011

2011 Resources Recycling Industry Exhibition Shanghai 01

It’s the first day of the 2011 Resources Recycling Industry Exhibition. I woke up early, hopped onto the subway line 1, exited the Caobao Road (exit door 1), made a left, and walked about 5 minutes to the Shanghai Everbright Exhibition Center (East Hall). After a painless registration process which requires a business card showing you’re in the recycling industry, I was in with a yellow registration tag dangling around my neck.

It’s 9:30 AM and most of the exhibitionists were still setting up their booths. At the entrance, the exhibitors were greeting visitors with a smile and passing out company brochures. They were eager to make the most of their exhibition fees.

All in all, while I didn’t see anything super innovative, I had a wonderful time chatting with some of the companies which ranged from plastic scrap suppliers/buyers to plastic recycling machinery technicians (pelletizers, washing lines, shredders/crushers/granulators, etc…). There were also companies in the rubber recycling industry sharing their developments.

2011 Resources Recycling Industry Exhibition Shanghai 02

2011 Resources Recycling Industry Exhibition Shanghai 03

2011 Resources Recycling Industry Exhibition Shanghai 04

As I’m in the market for a LDPE washing/pelletizing line, I spent most of my time speaking with the technicians at the recycling machinery booths, which were mostly from the Zhangjiagang/Jiangsu area. The companies offered fully automated lines run by conveyor belts with prices between 100K-200K USD. While you would think a machine of this value would at least offer a 5-10 year warranty, the standard warranty is only 1 year. What does that tell you about quality? After the one year period, repair costs will be charged “at cost”.

I also met several suppliers/buyers of plastic scrap that I had wonderful conversations with. Again, while I didn’t learn or see anything innovation, it’s always a pleasure meeting new friends in the plastic recycling industry.

Plastic Scrap Optical Sorter

| Recycling | 09/05/2011

I was in Ningbo (Zhejiang Province) several days ago to visit a friend that recently purchased a TiTech Optical Sorter. Basically, the machine uses a conveyor belt to drive shredded plastic pieces under an optical sensor which then uses an air-jet to pick or “shoot” out the desired plastic type. While the optical sorter can only pick out 1 plastic type at a time, it’s able to separate a wide variety of plastic scrap including ABS, ABS/PC, HIPS, PS, PET, PETG, PVC, PP, etc…

This is definitely a step up from the manual separation of e-scrap plastics, however, the machine has many limitations:

  1. The plastic you feed into the conveyor needs to be around 3-5cm.
  2. It takes 2-3 passes before the plastic is completely sorted.
  3. The sorter is not very sensitive to black or dark pieces.
  4. The regrinds need to be clean or relatively clean.

One of the largest issues with plastic recycling is sorting by plastic type. If we can perfect this technology, it would make the recycling of plastic a much simpler process which will lead to the increase of plastics recycled.

AQSIQ Registration Requirements

| Recycling | 07/15/2011


I received several emails yesterday inquiring about the requirements needed for AQSIQ registration. You do not need to be a large plastic scrap processor to be eligible for the AQSIQ. In fact, any company that can provide the below mentioned items and submit a registration form is eligible:

  1. Notarized copies of your business license and tax registration documents. These documents need to be translated into Chinese and notarized.
  2. Blueprints of your office, storage facility, or processing plant (include size and units). You also need to provide a video AND 8 or more pictures with complete views of the office/storage/processing plant.
  3. You must own a radiation detector. If you do not own one, you can purchase one online.
  4. ISO 9001 is officially required (If you’re not registered with ISO 9001, it’s not complicated, search for an ISO 9001 registration organization in your country of business). If you have any other quality management system or RIOS system or any other related authentication certificates, provide color copies.

*Due to the confusing nature of registering for AQSIQ, I strongly recommend hiring a third-party registration company to fill out and submit the application on your behalf. If you have any questions regarding this article or AQSIQ/CCIC in general, email me at andrew[@]recycledplastic.com.

On-site CCIC Inspections in China

| Logistics | 06/29/2011

Is CCIC in your country?

In most cases, to ship plastic scrap or recyclables to China, the first step is to request CCIC inspection for your goods before or during loading. Without the proper CCIC pre-inspection certification (issued after passing the inspection), the recyclables will not be allowed into China.

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Reflective Plastic Scrap

| Plastic | 06/23/2011

Reflective Plastic Scrap

A difficult part of exporting plastic scrap to China is figuring out exactly what you can and cannot import. For most plastic brokers and dealers, it takes years of experience and trial and error before getting a clear answer. While I cannot cover this topic in a short article, a thing to be careful about is reflective (metallic) pieces or parts inside your plastic scrap loads.

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Importing & Exporting PET Soda Bottles (Flakes) to China

| Recycling | 06/02/2011

PET Flakes (clean, clear, dry)

Since the start of the plastic scrap industry, PET has been a hot selling commodity. This is because the common plastic soda/water bottle (made with PET plastic) can be processed into recycled polyester staple fiber (PSF), which can then be manufactured into clothing.

The first thing to know about exporting and importing PET bottles to China is, like other plastic scrap, it must pass CCIC pre-inspection. As soda/water bottles usually have residual liquids such as leftover juices, soda, etc. Dirty plastic bottles are often smelly and attract many insects such as ants and flies, which is a definite “no-no” in the inspector’s eyes. To properly export PET bottles to China, they are shredded (release liquids) and put through a quick water bath. To reduce the humidity inside the PET flakes, the semi-cleaned flakes are left out in the sun for drying before being compacted and baled for shipment.

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Top 5 Plastic Scrap Scams

| Recycling | 05/20/2011

I always meet with new suppliers before doing any sort of money transfer. If possible, I’d rather pay cash for commodities during loading than sending out a deposit and crossing my fingers hoping the supplier is legitimate. The goal of meeting each of my supplier is to not only build the initial relationship, I plan on working long term with each and everyone of them. In the end, I’ve become very good friends with many of my buyers and suppliers. To me, business is about building relationships.

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E-waste “Demanufacturing”

| Recycling | 05/16/2011

E-waste Separation in USA

Cnet posted an interested news article on the dismantling of e-waste in the United States with pictures. The e-waste business is composed of more than just plastic recycling, but metal, glass and battery recycling as well. The highest profits in an e-waste business comes from precious metals such as gold, silver, and copper that can be extracted (smelted) from circuit boards (cell phones, computer boards, etc…). You can find the full story here:

Demanufacutring E-waste for Profit (photos)

Enjoy!

Plastic Scrap Market Analysis 2011

| Plastic | 05/16/2011

Plastic Scrap Analysis - 2011 Price War

Plastic Scrap Market Analysis

Most Chinese businesses want to jump on the US bandwagon to search for plastic scrap they can trade or make money from. The magic formula seems to be to buy plastic scrap in the United States at low prices, export it to China, and make money. While many see the United States as an opportunity with open doors, I personally think that this window is becoming more narrow.

I say this because the United States is rapidly developing its own plastic scrap marketplace. Instead of shipping all plastic scrap into China for processing, most high quality, clean scrap is now being traded and sold locally at premium prices (at prices much higher than China). What gets exported is usually low in quality and or difficult and time consuming to separate and process.

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