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HDPE PLASTIC SCRAP – “Scrapping Plastic for Dividends”

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by - 9/16/2015 5431 Views

Plastic TRASH is CASH

HDPE is a hydrocarbon polymer prepared from ethylene/petroleum by a catalytic process. It is a kind of thermoplastic which is famous for its tensile strength. Its unique properties can stand high temperatures.

HDPE plastic recycling is a blessing in disguise to developing countries like India where it is used to prevent groundwater pollution. It can be easily molded and welded together. The high chemical resistance property of HDPE plastic helps in the manufacture of pipes. HDPE pipes are used to both carry potable water and hazardous waste. It is used in making backpacking frames, bottle caps, food storage containers, vehicles fuel tanks, folding chairs etc.

As per my study of the present market, the HDPE plastic recycling industry is in a growth mode with supply and demand increasing at 4.5–5.5% at least till 2020. Demand will continue to be dominated by Asia, primarily China. Northeast Asia alone is estimated to account for 31% of the total global consumption. Historically, traditional established economies, such as North America, Western Europe and Japan, produced HDPE. The recent growth of the polyethylene industry has resulted in a shift to production centers in the Middle East—Iran, Qatar and Saudi Arabia.

In 2014, a worldwide turnover of 61.8 billion US$ was achieved with HDPE. The market research institute Ceresana expects annual revenues to increase by 4.2% p.a. to approximately 85.8 billion US$ until 2022.

The biggest consumer of HDPE plastic scrap is considered to be from the Asia-Pacific region: The world market share increased from 33% to 44% in the last eight years. Also, in the near future, this region will continue to emboss its growth, however not to the same extent as in the past. Eastern Europe and the Middle East experience a constant growing demand. A boom is in the waiting for the markets in North America and Western Europe within the next few years, whereby especially North America is expected to create a historical turnaround.

(Source: Chemical Economics Handbook)

HDPE plastic production output in Western Europe is likely to fall due to the closure of production sites and an absence of capacity increases. In all other world regions, production will further increase.  According to market analysts, the highest increases are expected to be realized in Asia, the Middle East and North America. Due to their low initial level, Africa and South America will show the highest growth rates in production.

Western Europe will be increasingly dependent on imports, due to decreasing capacities. North America increases its net exports over the following eight years by presumably over one million tonnes. The Middle East is the biggest net exporter worldwide with approximately 4.8 million tonnes.

HDPE plastic recycling market is establishing itself as a profitable institution and I would say it is going to bring in a revolution in both imports and exports, thereby generating dividends. It is TRASH being converted to CASH. 

 

Category : Plastic

Tags : HDPE Plastic Scrap, HDPE Plastic Scrap Recycling, HDPE Plastic Scrap Market, HDPE Plastic Scrap Market Trend


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About Georgy Abraham

As the bright morning of 28th May dawned in the year 1972, in the fulfillment of time according to the plan & will of Almighty Godbrought me forth into this world and I was brought up & educated in Orissa. My parents provided me with the best of education in an English medium school with high standa .... more info

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