Kickstart: Rising resin prices and recycling

Rising resin costs may finally be making an impact on the business case for recycled materials.The Bureau of International Recycling says the market for recycled material has improved, thanks to demand for virgin plastics.”This has produced a run on raw materials, creating an imbalance between supply and demand,” Henk Alssema, chairman of the BIR plastics committee, said in a report on the website “The upward trend in prices began this year and has continued to historically high levels.”But at the same time, he warned, changing to a circular economy to get more materials into the recycling channel takes time.”We can state unequivocally that there is an extremely fragile balance in the transition to a circular economy,” he said. “Yet we all know that an extremely limited percentage of Plastic is recycled around the world, and that there is much more plastic waste available than the amounts currently recycled by our industry.” The latest survey tracking the relationships between automakers and their suppliers is out, and the results aren’t what was expected during a chaotic year. Rather than big shifts, suppliers are solidifying their bonds to favored carmakers.”Toyota and its purchasing operations still rank tops in the industry for supplier relationships. Honda still ranks second to only Toyota. General Motors still ranks third. And all three actually saw higher scores from their suppliers than a year ago,” writes Lindsay Chappell from our sister paper Automotive News.In fact, the Plante Moran study surprised even executives within the consulting group.”Typically, a crisis is not the time to improve established relations,” Dave Andrea, head of Plante Moran’s strategy and automotive & mobility consulting practice, told AN.Perhaps, Lindsay writes, it shows that suppliers appreciate customers that maintain strong and clear lines of communication.”So in other words, it’s not what you ask of your value chain — it’s how you ask,” he writes. “And if you’re going about it the right way, it doesn’t matter whether the world is in chaos or not.”You can find a short story on the survey , and at Automotive News.
 Americhem’s booth at Chinaplas in 2019. Today marks the start of a six-month celebration for compounder and masterbatch company as it marks its 80th anniversary.The Cuyahoga Falls, Ohio-based Americhem began in November 1941 with one facility. It now has 12 global facilities. It will mark the occasion with charitable donations and special recognition of its 12 longest tenured employees. One of those people has been with the company for 50 years.”You rarely hear people staying at one company for this long and that says a lot about Americhem,” Hailey Cassidy, global digital marketing manager, said in a news release. “These are people who have seen natural ups and downs over 25-plus years and still feel endlessly grateful for what Americhem has given to them. I am so excited to share these inspirational stories.”  Do you have an opinion about this story? Do you have some thoughts you’d like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at Staying current is easy with Plastics News delivered straight to your inbox, free of charge. Subscribe to Plastics News Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.Customer Service:

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