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www.mathelinbay.com Canadian Plastics Resin Outlook Conference October 6, 2011 The Outlook for Recycled Resins
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Canadian Plastics Resin Outlook ConferenceOctober 6, 2011
The Outlook for Recycled Resins
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Agenda
The recycling industry is playing a significant role in helping companies develop and implement winning strategies to help offset rising raw material costs.
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Recycled Resin Overview
•Mathelin Bay Introduction
•Fundamentals Recycled Resin
•Prime Resin Markets
•Industry Outlook
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Mathelin Bay Associates
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INTRODUCTION
Mathelin Bay leverages extensive multi-disciplined experience and networking to help clients develop sustainable resin programs that reach the bottom line.
• Resin Procurement for Processors.• Non-Resin Procurement for
Processors.• Sales Support for Processors.• Mergers & Acquisitions and Private
Equity Supply Chain Rationalization.
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RECYCLED RESINSFundamentals
• Demand continues to increase• Supply continues to decrease• Prime & Secondary market correlation• Recycled content / environment• Alternatives for recycling industry
Just as in polymer resin industry economics, recycled resins have a unique set of drivers that impact their market .
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Demand CONTINUES TO INCREASE
Sourcing strategies for recycled resins are key.
• Despite economic downturn there is significant demand increase for plastic raw materials to help offset rising feedstock costs.
• Demand for historical scrap, regrind and repro is at all time high and will continue to rise.
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Supply CONTINUES TO DECREASE
Supply streams are valuable commodities.
• Despite increased recycling efforts, supply of post industrial feedstock is decreasing and post consumer feedstock is marginally improving.
• This will translate into higher costs across the entire value chain over the near term and increase scrap and repro pricing in the marketplace.
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Supply CLASSIFICATIONS
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Supply CLASSIFICATIONS
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Market Correlation VIRGIN PRIME and SECONDARY
Traditionally recycled resin prices lag in relation to virgin commodity pricing both in an up and down market.
• There is correlation exhibited between recycled resins Vs virgin prime and secondary markets over time.
• Recycled resins are becoming and establishing a unique market all onto themselves despite this correlation.
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EnvironmentRECYCLED CONTENT PUSH
We will continue to move into more creative and innovative ways to manage our waste and build efficiencies.
• 3R’s and zero landfill initiatives will stay as the norm.
• Major OEM brands are capitalizing on marketing.
• Alternative fuel option.• Waste to Energy movement.
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Alternatives RECYCLING OPTIONS
There will be further rationalization and competition for recycled resins and waste as these processes gain popularity.
• Recycled content standardized and verifiable content.
• EOL options to tackle fossil fuel reduced dependency and carbon footprint elimination.
• Alternative fuel/energy option.
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Prime Resin Market SNAPSHOT
Commodity resin markets will continue to react to supply and demand economics and recycling programs will grow.
• Commodity resin markets and producers are battling increased feedstock costs and business rationalization due to global competition.
• Significant social and economic drivers will continue to prevail.
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Industry Outlook RECYCLED RESINS
Recycled resins demonstrate a financial cost advantage and promote environmentally friendly solutions.
• Despite slower economic growth recycled resins will grow in demand and have a significant cost advantage over virgin and secondary commodity resins.
• Environmental initiatives will continue to create demand pull and promote the use of recycled resins
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Industry Outlook RECYCLED RESINS
Recycled resins have and will continue to carve their own special niche within the commodity resin market.
• Alternative fuels/energy and waste to energy EOL innovative technologies are on the rise which will provide additional outlets and competition for recycled resin feedstock.
• Reduction of carbon footprint and recycled content standardization will continue to favor the growth of recycled resins.
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Contact InformationMATHELIN BAY MANAGEMENT TEAM
• Phil Karig, Managing DirectorFormer CPO and VP Procurement, Spartech Corporation.Email: [email protected]
• Bruce Petersen, Chief Procurement OfficerFormer VP Materials Management, A. Schulman, Inc., President Diamond Polymers and SPE President.Email: [email protected]
• John Denzer, Executive PartnerCEO of The Polyven Group and former Director of Sales for PP at Formosa Plastics Corporation, U.S.A. and PP Market Manager at Millennium Chemicals (currently LyondellBasell).Email: [email protected] & [email protected]
This Team has Over 90 Years of Polymer Industry Experience.
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Thank You
![ROOFING ENVIRONMENTAL PRODUCT DECLARATION ......PVC Resin new material 40.6 Cardboard Core [kg] 0.05 0.05 PVC Resin recycled content 12.9 Wooden Pellet [kg] 0.13 0.13 Plasticizer 26.8](https://static.documents.pub/doc/80x56/606ff81336973b758a36e107/roofing-environmental-product-declaration-pvc-resin-new-material-406-cardboard.jpg)
