Plenary PPT for 2016 R3 Conference

1. The Story of Recycling in 2016
Dylan de Thomas,
Resource Recycling
MassRecycle R3 2016
Recycling & Organics
Conference
Mar. 29, 2016

2. About Resource Recycling, Inc.

3. About Resource Recycling, Inc.

4. Recycling is Dying…

5. And It’s All Glass’ Fault

6. And It’s All Oil’s Fault

7. And It’s All Single-Stream’s Fault

8. And It’s All Our Fault?

9. What We’re Talking About Today
• Why is the Sky Falling?
• Going Global
• From MRFs to Markets
• Sustainable Materials
Management
• Partnering Up for Next Steps

10. Recycling Commodity Markets Overview

11. The Big Picture
• Strong dollar +
• Excess production of crude and
other commodities +
• Changes in China +
• = Down market, disappearing
margins, hurting industry

12. Strong U.S. Dollar

13. Low Oil Prices
Source: New York Times, Mar. 24, 2016

14. Excess Capacity
----
10
20
30
40
50
60
70
80
90
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0
2.5
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
DAK Indorama M&G
Nan Ya Selenis Eastman
OperatingRate,Percent
North American Capacity Growth
© 2016 IHS
MillionMetricTons
Source: IHS

15. Recycling Commodity Markets Overview

16. It’s Not Just the Green Fence…

17. Context of China

18. China’s Working-Age Population Peaking
Source: United Nations World Population Prospects

19. Going from this:
China’s Shifting Labor Landscape

20. To this:
China’s Shifting Labor Landscape

21. From this:
China’s Shifting Labor Landscape

22. To this:
China’s Shifting Labor Landscape

23. Which Leads (In Part) To…

24. Aggregate Scrap Material Values
Source: Institute of Scrap Recycling Industries, 2016

25. Value of a Commingled Ton
Source: Scott Mouw, NC DNER, 2016
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00

26. From MRFs to Markets

27. Growth of Single-Stream
Processing in No. Am.
Source: Government Advisory Associates, Inc., 2013
& Resource Recycling, 2016

28. Single-Stream MRFs in the U.S.
• Map
Source, Resource Recycling, 2013

29. Increasing contamination
• According to WM figures, contamination of loads is an average of 16% of
inbound tons.
• Contamination can be up to 50% of incoming loads
• Processing costs continue to increase as markets demand reduced
contamination. This drives up cost to customers.
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
20.0%
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
Contamination Percent
Inbound Tons Residue %
Source: Waste Management, 2015

30. The Evolution of Packaging
From steel can, paper
label adhesive to
multi-layer, foil-lined
flexible film pouch
From glass jar, metal
lid and paper label
adhesive to multi-
layer, multi-resin
pouch with PP
enclosure

31. The Evolution of Packaging
Coffee
Cookies /
CrackersPharma /
Over-the-counter
Personal Care
Pet Food
Shaving
Juice
Baby Food & Formula
Nuts

32. Reframing Recycling in Sustainable
Materials Management

33. SMM & Recycling
Source: Oregon DEQ, 2015

34. Growing Partnerships

35. Growing Partnerships

36. And the Good News Is…
• SE Asian Markets
Growing
• Markets Cyclical
• Low Oil Also Means
Fuel Savings
• Increased
Partnerships/Industry
Engagement
• Innovations Abound
• Acting Local…

37. And Thank You!
Dylan de Thomas
Editorial Director
Resource Recycling, Inc.
dylan@resource-recycling.com
503-309-5142
Resource-Recycling.com