2024_0423_PWETC_Packet - Laserfiche WebLink

Home

HDPE Color followed a similar trend as PET but the sale of this material is more reliant on the agriculture industry, as much of this material gets made into drainage tile and piping for farms. When there is significant uncertainty (such as due to a pandemic or concerns about ability to trade agricultural products to other countries) farmers tend not to invest in new irrigation infrastructure, which can negatively impact the HDPE Color markets. HDPE Natural is the same type of plastic as HDPE Color, but because it has no coloring added it is a more versatile product and can be turned into any type of product— most of our HDPE Natural is turned back into bottles. Both HDPE Color and Natural took a surprising dip last spring and slowly climbed back up in the fall. Many in the industry believe the reduced pricing was caused by unused petroleum being dumped on the market as many were worried about a recession and didn't want to hold on to inventory that may lose its value. Extended Producer Responsibility in the form of minimum content rules (which would require manufacturers to use a minimum amount of recycled content) would reduce this type of market fluctuation and is one type of EPR for which Eureka advocates. The third type of plastics we sort, polypropylene (PP, #5) remained flat throughout 2023 and markets expect to hold steady in the upcoming year as well. Metals markets strengthened slightly at the beginning of 2023 and then fell towards the end of the year. Even with the decrease aluminum has remained the most valuable material in the stream (unlike 2021 when HDPE Natural was worth more for a few months). Experts believe aluminum pricing will remain higher than other materials, although this material is especially sensitive to the impacts of tariffs and trade agreements. Market Dynamics and Public Policy Initiatives are intertwined because how policy is designed can support or weaken end markets and recycling programs. Eureka Recycling continues to advocate for EPR and policies that strengthen recycling in our communities and minimize the environmental impact of manufacturing. The potential enactment of Extended Producer Responsibility (EPR) legislation in Minnesota holds the power to profoundly reshape the plastics markets, influencing both operational strategies and market dynamics. Under EPR, producers would be accountable for the entire life cycle of their plastic products/packaging, stimulating a fundamental shift in material and design choices. This shift puts pressure on producers to prioritize recyclable and recycled materials in their designs, creating a surge in demand for recycled plastics and a reduction in non -recyclable plastics in the marketplace. Prioritizing recyclability in product design would present a dual benefit. As producers incorporate recycled materials into their products, the potential for heightened demand in recyclable materials emerges, which could positively influence pricing dynamics. Simultaneously, the legislation aims to mitigate the proliferation of problematic packaging that cannot be sorted at Material Recovery Facilities (MRFs), thereby diminishing residual rates and capturing a more substantial volume of recyclable material. In essence, the prospective implementation of EPR in Minnesota represents a crucial juncture to enhance recycling effectiveness, contribute to a cleaner and healthier environment, and alleviate the recycling burden and confusion experienced by residents and average consumers. Page 25 of 69