Saturday, August 6, 2011

Trading PET Soda Bottles to China

By Sandeep Singh


Since the beginning of the plastic scrap trading industry, PET has been a hot selling commodity. This is because the common plastic soda/water bottle (made with PET plastic) can be processed into recycled polyester staple fiber (PSF), which can then be manufactured into clothing.

The very first thing to understand about exporting and importing PET bottles to China is, like other plastic scrap, it must pass CCIC pre-inspection. As soda/water bottles usually have residual liquids like leftover juices, soda, etc. Dirty plastic bottles are usually smelly and attract many insects such as ants and flies, which is a firm "no-no" in the inspector's eyes. To properly export PET bottles to China, they're shredded (release liquids) and put thru a quick water bath. To scale back the humidity inside the PET flakes, the semi-cleaned flakes are left out in the sun for drying then was compressed and baled for cargo.

If the PET bottles aren't properly cleaned, that is, baled full, they're typically sent to other countries for processing such as Hong Kong, Vietnam, Philippines, for example.

On the China side of things, a correct environmental license is needed for importing PET plastic bottles. Actually the common import license needs the PET to be shredded or flaked. More often than not, buyers of PET flakes are end-users that own the environmental certificate. This allows the buyer to not only lower the costs for importing; it gives the buyer certain tax refunds. I've been told reports the Chinese executive plans to release environmental import licenses for whole plastic bottles , however , it has still to come out.

PET flakes are usually specified by type and colour. The costliest is clean, clear, dried PET flakes without labels or bottle tops. At the time of this tract, this commodity sells for about $1100 Greenbacks per metric ton CNF China. The less fascinating is clear PET flakes with labels and bottle tops which are made with PP or PE plastic. Once these arrive in China, they must go through additional processing before usage. The price for this is around $950 Bucks per metric ton CNF China. The above costs are primarily based on extraordinarily low, nearly no humidity and PVC content (or other plastics).

This should have given you fundamental info on plastic scrap trading that should also help you in understanding it's pricing and what you can do to help ensure you get the very finest price for your scrap.




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