Strict new limits on plastic scrap imports into Southeast Asia, including recent announcements by Thai authorities, could have a “devastating” impact on Chinese recyclers, according to the head of one of the recycling associations of the country.
In the latest move to suggest that Southeast Asian nations are following the Chinese government’s initiative to limit imports of waste, Thai authorities announced a June 24 crackdown on electronic waste and plastic scrap, including plastic waste. intended for recycling plants.
In a statement on June 26, China Scrap Plastics Association Chairman Steve Wong noted that the tightening of import regulations comes as some Chinese companies moved their operations there, or made plans to do so, in response to Beijing’s previous ban. .
Beijing-based CSPA said Thailand plans to inspect 2,240 plastics recycling factories for illegal imports of e-waste and other violations of environmental and labor laws, and import permits.
“Major import problems have surfaced in recent weeks in major markets in Southeast Asia, including Thailand, Vietnam and Malaysia,” Wong said. “Environmental concern over the smuggling of highly contaminated e-waste led to the tightening of regulatory controls on imports of plastic scrap by Thailand and has now practically paralyzed the normal flow of trade to this country.”
CSPA said more than 30,000 containers sit idle in Thai ports, following similar problems at Vietnam ports.
“Thousands of containers have not been authorized by consignees for months,” said CSPA. “The probability of moving these containers from the port is increasingly reduced, while demurrage charges accumulate daily.”
Wong said Malaysia continues to accept waste plastics, but the industry is concerned that the authorities will enact similar restrictions: “A depressing view on the trade has prevailed.”
“The latest changes have had a devastating effect on waste pickers, particularly those [who] moved their businesses out of China due to the plastic ban,” CSPA said. “Some of them will have to withdraw their operations once again and may suffer huge losses even before the factory starts operations.”
Earlier, Wong had estimated that about 20% of China’s plastic recycling companies that relied on imported raw materials had moved to other countries in the wake of Beijing’s crackdown on plastic imports, mainly to Southeast Asia, he said. . About 60% of companies in the industry were closed, he said.
In a speech at a May conference at NPE2018 in Orlando, Florida, Wong warned that Southeast Asian nations could follow China’s lead and crack down on waste imports.
Some reports in May said that Vietnam was making plans to restrict imports of scrap plastics and paper, in part because rising volumes were limiting capacity at ports.
In a related development, local media in Vietnam reported on June 27 that the country’s environment minister promised to crack down on single-use plastic products, in a meeting with the head of the UN environmental agency. during a UN forum in the country.