Trends in Recovered Paper - NC State: WWW4 Serverrichardv/documents/tissueday2016recovered...Trends...

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Trends in Recovered Paper Dr. Richard A. Venditti Professor Paper Science and Engineering [email protected] Tissue Day 2016 | Tissue Pack Innovation Lab | go.ncsu.edu/tissue

Transcript of Trends in Recovered Paper - NC State: WWW4 Serverrichardv/documents/tissueday2016recovered...Trends...

Page 1: Trends in Recovered Paper - NC State: WWW4 Serverrichardv/documents/tissueday2016recovered...Trends in recovered paper demand • Trend of paper prices steady/increasing. • For 2014-2017

Trends in Recovered Paper

Dr. Richard A. Venditti

Professor

Paper Science and Engineering

[email protected]

Tissue Day 2016 | Tissue Pack Innovation Lab | go.ncsu.edu/tissue

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US Paper Recovery (AFPA) Statistics(as RR increases: $ up and quality down)

Tissue Day 2016 | Tissue Pack Innovation Lab | go.ncsu.edu/tissue

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US Paper

Recovery (AFPA)

Statistics

Tissue Day 2016 | Tissue Pack Innovation Lab | go.ncsu.edu/tissue

OCC

P & WONP

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Trends in recovered paper demand

• Trend of paper prices steady/increasing.

• For 2014-2017 domestic OCC demand increased by

1 million tons

– Due to new or converted containerboard capacity

• 35% of OCC in US is exported, 70% is destined for

China

• Asia has grown their domestic collections but will

always need to import fiber from US due to the virgin

content

Tissue Day 2016 | Tissue Pack Innovation Lab | go.ncsu.edu/tissue

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Trends in recovered paper supply:

sources

• On-line shopping

– Less sold at Walmart,

grocery stores, retail

stores and more sold

through internet

– More at home deliveries

– Boxes collected at the

curb or thrown away

• Store recycling rate: 100%

• Home recycling rate: 50%

• Mixed paper from curbside

waste….more contaminants

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Trends in recovered paper supply:

sources• Single stream continues to

grow.

• Dual stream (two bins: paper

and others) recycling almost

non-existent.

• Single stream decreases

quality of the recovered

paper

– Increased non-fiber

contamination

– Increased fiber based

contamination• Mechanical pulps from

board into OCC

• OCC and mechanical into

mixed papers

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Profitability Challenges in a MRF

• Material Recovery Facilities (MRF)

• MRF in US have grown from 465 in 2006 to 627 in 2014

• Almost always accepting single stream recycling

materials

• Trend of decreasing quality recovered materials

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Revenue drivers in a MRF

• Weighted

average price

(WAP) of input

material

• Paper is about

50% of input

mass

• Paper is about

75% of the WAP

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MATERIALS CURBSIDE % Value

Fraction

GLASS 0.2462 -9

ALUMINUM CANS 0.0109 19

NEWSPAPER (PS 8) 0.1237 16

STEEL 0.0153 2

HDPE Color 0.0109 7

HDPE NATURAL 0.0093 8

PET 0.0338 8

Mixed Paper (PS 1) 0.1869 23

Plastics 3-7 0.0032 0

OCC (PS 11) 0.2208 37

Trash 0.1390 -11

Weighted Average Price $66/ton input

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Revenue drivers in a MRF• WAP is about $70 / ton

• Garbage and glass can have tipping fees associated with them

• Currently MRF total costs are circa $70/ ton

• The value of recyclables has decreased over the years…

• CEO of Waste Management went on CNN and stated that

recycling is not going to be profitable

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Fiber quality trends

• OCC quality degradation from

short fibers from

– Containerboard, recycled

board and boxboard

content

– More overseas content

– Single source recycling:

ONP and mixed

• ONP and High grades quality

deterioration from

– Boxboard like cereal

boxes, unbleached kraft,

poly coated, envelopes

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Bale quality: Moisture• Moisture content of 7% is normal

• Moisture above 12% is penalized

• Probe -- highly unreliable due to

subjective nature of the probe ---

can expect 3% noise in

measurement and 10% in

sampling

• Paddle – recommended, can

expect 1-2 % noise and low

sampling error

• China is using paddle type

meters to read bales from flatbed

trucks

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Bale quality: Lignin

• Mechanical pulp detection for

P & W or deinked market pulp

• Phloroglucinol turns red to

deep purple in presence of

mechanical pulp

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Fiber quality trends:Price of fiber on a per ton of produced product basis

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2016 Jan Mar Jun Nov

Soft mixed paper (2) 40 45 40 45 60 65 75 80

News (6) NA NA NA NA NA NA NA NA

Boxboard cuttings (4) 55 60 60 65 65 70 85 90

Corrugated containers (11) 75 80 75 80 90 95 100 110

New double-lined kraft corrugated cuttings (13) 85 90 85 90 95 105 110 120

Special news, deink quality (8) 50 55 55 60 65 70 80 85

Magazines (10) 90 95 95 100 90 95 95 100

Coated groundwood sections (44) 90 95 95 100 90 95 95 100

White blank news (24) 225 235 225 235 215 225 215 225

Unprinted bleached board (47) 280 290 280 290 280 290 270 280

Hard White Shavings (30) 300 310 300 310 300 310 300 310

Hard white envelope cutt. (31) 315 325 310 320 310 320 310 320

Sorted office paper (37) 105 115 110 120 130 140 150 160

Manifold (preconsumer) Colored ledger (39) NA NA NA NA NA NA NA NA

Coated book stock (43) 105 115 110 120 130 140 150 160

Bleached board cuttings (45) Heavily printed 130 140 135 145 140 150 160 170

Sorted (postconsumer) White ledger (40) 195 205 190 200 180 190 200 210

Manifold white ledger (41) 195 205 190 200 185 195 205 215

Bleached board cuttings (45) Lightly printed 190 200 185 195 180 190 190 200

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Fiber quality trends:Price of fiber per ton of finished product

• Fiber cost per ton of finished product:

– Moisture in bale

– Deinking/recycling yield

– Operating costs, eg. Bleaching agents, Sludge tipping

fees

– others

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Fiber quality trends:Price of fiber on a per ton of produced product basis

• Compare the following two fiber costs

per ton product:

– Mixed paper, $80, 65% fiber

yield, +20% operating costs

– $150/ ton finished product

– Hard white shavings, $200, 95%

fiber yield, -20% operating costs

– $170/ ton finished product

• However, this data can not be

determined for bales on a practical

basis

Tissue Day 2016 | Tissue Pack Innovation Lab | go.ncsu.edu/tissue

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Fiber quality trends:Price of fiber on a per ton of produced product basis

• Compare the following two fiber costs on measurables:

– Mixed paper, $80, 12% Moisture, 8% gross

contaminants, 15% ash, 10% short fiber, process has

a 95% yield on long fiber, +20% operating costs

– $163/ton finished product

– Bleached board cuttings, $200, 7 % Moisture, 2%

ash, 2% short fiber, 95% long fiber yield, -20%

operating costs

– $200/ton finished product

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Recommendations to buyers:

• Investing in someone on the dock, may pay for itself….. … moisture

content/contaminants….need some balance….

– Suppliers might not supply

– Suppliers send good bales to you

• Utilization of a fiber price per finished ton of product audit on a

regular scheduled basis

• Deinking mills should look out for groundwood

• Drum pulpers…

– Allow the use of lower grades

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Other Resources on Paper Recycling• Richard A. Venditti,

[email protected], 919 515 6185 (office), 919 649 4017 (cell phone), go.ncsu.edu/venditti

• Website with over 800 powerpoint slides on paper recycling: go.ncsu.edu/Venditti (downloads)

• Video taped lectures on paper recycling. 23 videotaped lectures with approximately 25 hours of lectures available at go.ncsu.edu/Venditti (youtube.com, search for Venditti paper recycling)