This week, Berg Mill provides market updates regarding Malaysia’s new plastic import requirements, as well as talks of India’s developing domestic recycling plan.
Plastic import changes in Malaysia
Malaysia is following in the footsteps of China, which has largely banned most scrap plastic imports. Despite its reputation as the one of the top importers of the U.S.’s scrap plastic, according to Plastics Recycling Update, government officials in Malaysia plan on banning scrap plastic imports over a three-year period. In the meantime, Malaysian authorities are imposing tighter restrictions on plastic import shipments.
The ultimate goal of Malaysia’s new three-year plan is to replace plastic imports with domestic materials. The plan’s guidelines set up new requirements for each importer:
In year one, scrap importers can use up to 70 percent imported material as feedstock but the remaining 30 percent must be domestic material. For year two, 60 percent of their material can be imported, while the percentage of domestic material will rise to 40 percent. In the third year, the ratio will balance out at 50-50. After the three years, overseas importers will need to rethink their strategies, as Malaysia will enforce a ban on all plastic scrap imports.
The Malaysian government will issue permits to operators that meet the new import criteria. But so far, there is no set date for when those permits will be released, as officials have put a halt on issuing any permits for scrap plastic.
There will also be limitations on countries that can import to Malaysia. Once permits for scrap plastic are reissued, the only imports allowed will be from the U.S., the European Union and Japan. Imports will be subject to a levy of $3.60 per metric ton, according to Plastics Recycling Update.
India works on new recycling regulations
Indian officials are seeking to create a more comprehensive domestic recycling plan that may benefit exporters in due time. Although no official documentation has been released yet, officials are hoping have recycling policies in place soon.
In August, Indian officials held a series of meetings called “Sustainable Growth Through Material Recycling: Policy Prescriptions,” which covered various growth opportunities in the recycling industry. Topics included environmental benefits of recycling, economic issues, and circular economy topics, among others.
Officials hope that once policies for India’s domestic recycling plan are finalized, there will be an opportunity for trade in the near future, possibly becoming a reliable trade partner with the U.S. and other countries.
“Recycling will increase growth, create wealth and generate employment,” Nitin Gadkari, minister for road transport and highways, stated in a press release from the Indian government.
Berg Mill has a long history as one of the pioneers in the industry, and we are not going anywhere even when faced with recyclable import changes. Every day we are making progress, as new homes start to become more and more real for your material whether it be paper, plastic, metal, textiles, etc. If you continue to handle large amounts of recycled waste and are looking for solutions to offload idle scrap, please contact our industry veterans at Berg Mill Supply.