brian hawkinson, af&pa 16 th annual texas recycling & sustainability summit october 14,...
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Growing and Sustaining Markets: Paper Recycling. Brian Hawkinson, AF&PA 16 th Annual Texas Recycling & Sustainability Summit October 14, 2013 Houston, Texas. About AF&PA. Advances a sustainable pulp, paper, packaging and wood products manufacturing industry - PowerPoint PPT PresentationTRANSCRIPT
Growing and Sustaining Markets: Paper Recycling
Brian Hawkinson, AF&PA16th Annual Texas Recycling & Sustainability
SummitOctober 14, 2013Houston, Texas
About AF&PA
Advances a sustainable pulp, paper, packaging and wood products manufacturing industryFact-based public policy and marketplace advocacyAF&PA member companies make products essential for everyday life from renewable and recyclable resourcesCommitted to long-term success of industry, communities and environmentBetter Practices Better Planet 2020 Sustainability Initiative
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Historical Paper Market Trends
U.S. Recovery of Paper & Paper-based PackagingOverall: 65.1%Second highest recovery rateTrue environmental success storyOn track to meet Better Practices Better Planet 2020 goal:
Exceed 70% recovery by 2020
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U.S. Paper Recovery Rate 1990-2012
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70% Actual
Trend
Source: AF&PA
Historical Paper Market Trends
Historical Paper Market Trends
5
20032004200520062007200820092010201120120
5,000
10,000
15,000
20,000
25,000
U.S. Recovered Paper Consumption by Major Grade 2003-2012
Corrugated
Newspapers
Mixed Grades
High Grade Deinking
Pulp Sub-stitutes
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Historical Paper Market Trends
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Mixed14%
Newspapers13%
Corrugated60%
Pulp Substitutes4%
High Grade Deinking9%
2012 Consumption of Recovered Fiber by Grade
Historical Paper Market Trends
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2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
0
5000
10000
15000
20000
25000
U.S. Consumption of Recovered Paper by End Use 2003-2012
Paperboard
Paper
Construction Paper & Board
Other
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Historical Paper Market Trends
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2003 2004 2005 2006 2007 2008 2009 2010 2011 20120
10000
20000
30000
40000
50000
60000
Total U.S. Recovered Paper Consumption and Exports 2003-2012
Domestic Consumption U.S. ExportsThou
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Affect of Quality on End Markets
Recovered Paper quality is marketplace issueMust meet production specifications:
CostAvailabilityMeet performance attributes of finished product
Processing requirements vary by gradeMills procure fiber that best meets production specifications
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“Advanced Resource Recovery” Affects
Marketplace issueQuality
Single stream collectionOutlet for non-recyclable paper
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Policy: Extended Producer Responsibility
Shifts responsibility form municipality to brand ownerWould disrupt existing effective infrastructureImpractical and unnecessaryIncrease costs for consumersIncrease costs for marginal returnFree markets should guide paper recovery & utilization
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Policy: Mandatory Commercial Recycling
Recovery should focus on meeting end user needsPotential for disrupting free flow of recovered paperUse and improve existing collection infrastructure
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Policy: Export Controls
Unlikely to increase paper recovery or utilizationStrong demand from export markets increase incentives to recover more paper Export restrictions:
Would eliminate incentives to increase recoveryWould leave large amounts of municipal single-stream mixed paper by creating an oversupply for domestic manufacturers…exports are the relief valveWould hurt municipalities and businesses across the supply chain Likely violate international trade rules
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Policy: Increased Recycled Content Mandates
Unlikely to increase paper recovery rateU.S. Paper Recovery and Recovered Fiber
Utilization
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1992 1996 2000 2004 2008 2012 20150%10%20%30%40%50%60%70%80%
Recovered Fiber Utilization Rate Recovery RateSource- AF&PA
estimated
“Best Practices” for Sustaining Recovered Paper Markets
Free marketplaceCollectionUtilization
System designed to meet end user requirements
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