Export uncertainty.

Export markets for plastic scrap may have US. plastics dealers scratching their heads these days.

According to a source based in the Southeast, Chinese tariffs on imports of plastic scrap have served to cool down that market during the last few months. However, a source based in the Midwest says he thinks things may be poised to change in favor of the United States.

"I have a feeling exports are going to go up in price," the Midwestern reprocessor says, citing China's three-month ban on the import of plastic scrap from the European Union as the driving force. The ban began July 12. As a result of the ban, he says, "The U.S. is the prettiest girl at the ball." Therefore, he says he expects exports of plastic scrap from the U.S. to China to increase during the next three months, as long as trade embargos, higher duty fees or quotas don't come into play.

While Malaysia doesn't have the appetite for plastic scrap that China has, the country has announced a ban that could affect exporters of the material. According to news reports, Malaysia has banned the import of plastic scrap for five years. The country's International Trade and Industry Ministry issued a ruling July 4 that bans all plastic waste, parings and scrap beginning Oct. 1, citing contamination and potential environmental damage.

The ministry has also appointed three companies to handle and mange plastic scrap materials in the country, to the protests of 21 factory owners whose operations also rely on the material, according to local media reports.

While export markets are sending mixed signals to recyclers and reprocessors, the domestic front has shown relatively steady, if not spectacular, performance.

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Generation has slowed somewhat, which is typical of industrial markets during the summer months. Skittishness on the part of the housing and automotive markets has also played a role, according to the reprocessor in the Southeast. She says she hopes for an improvement come fall, as the automotive market gears up for the new model year and the agricultural market heats up in the South.

Currently, however, she says, none of her customers want to build up inventory, with some moving to just-in-time shipments. This approach to inventory may work with virgin plastics, she says, but the unpredictable supply of secondary plastics makes it a challenge.

(Additional news about plastics recycling markets is available online at ww.RecyclingToday.com.)