info@potentialindustries.com

310-549-5901

720 East E St.

Wilmington CA 90744

Hours of operation : Production Mon-Sat 8:30AM – 4:30PM. Office Mon-Fri 8:30AM – 6PM

What’s New?

We are passionate about what we do

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China’s (Continuing) Impact on Recycling Markets

China’s policies with respect to import of recycled materials underwent a dramatic change in 2018, and the industry is continuing to feel its effects in 2019. We are seeing commodity pricing at some of the lowest levels in 10 years, and many municipalities are struggling with the economic impact of these changes. China will continue to require imported materials to meet the highest quality standards, which most MRF operators are unable to meet. At Potential Industries we work closely with our customers in China (and other markets, both domestic and export) to understand their requirements. In 2018 Potential Industries made a major investment in our MRF sorting equipment in order to improve recovery and quality, and strives to recover and market as many materials as economically practical.

Stormy Weather for Recyclers

California experienced record rainfall (and snowfall) this winter, ending a year’s long drought. Although the rains were welcomed by many, the wet weather brings many challenges in processing commingled recyclable materials. It is important that residents close the cart lid and only place clean dry material inside. Collection trucks operating during rain events causes material to come into contact with water, which is absorbed by paper and cardboard. Curbside material tends to stick together when it is wet, and modern sorting equipment (screens, optical sorters) does not function properly with wet materials. When material is so wet that it becomes clumped or wadded, then it is not sortable at all. Even material with slightly higher moisture content can have higher levels of contamination (plastic and glass in paper) due to materials sticking together. Excess moisture (over 20% in paper) is a serious problem for end user mills and can cause loads to be rejected entirely. Potential Industries takes a proactive approach with municipalities and suppliers during rainy periods to minimize the complications and costs associated with wet material.

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The Plastics Dilemma

Plastics markets have been extremely volatile since 2018, as China and other countries have imposed bans on Mixed Paper and Low-grade Plastics. Although there are stable domestic markets for #1 (PET) and #2 (HDPE), many types of plastics (#3 - #7) which were primarily shipped to China, and that market no longer exists. Many post consumer plastics traditionally sorted at MRFs, such as Mixed Rigid Plastic (MRP) and Mixed Film Plastic (MFP), no longer have markets. Some plastics which had been sent to China are now going to other markets in SE Asia, such as Indonesia, and Malaysia. However, other plastics do not have stable outlets, so many of these items are being sent to waste to energy plants or to landfills. Potential Industries is continuing to look for innovative solutions and markets for low grade plastics.

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