PSI Goes High-Profile

at PPRC Chicago

The PSI Chapter had a high-profile presence at last week’s Paper and Plastics Recycling Conference (PPRC) in Chicago, beginning with an Oct. 18 “PSI Palooza” reception. The event—which had been postponed the past two years due to the pandemic—attracted more than 100 PSI members and friends, who gathered at the Marriott Marquis Chicago to catch up and kick off the PPRC action. Notably, the reception doubled as a thank-you event for those who donated to PSI’s 2023 scholarship fund. And as an extra bit of fun, PSI handed out tie-dyed “PSI Palooza” bandanas that recipients could bring to the PSI-led “OCC/Mixed Paper” session on Oct. 20 to earn a chance to win gift-card door prizes.

PSI Chapter President Shawn State of Pratt Industries moderated the “OCC/Mixed Paper” session, which featured Evan Barrett of GFL Environmental Recycling, John Grinnell of Greif, Jeff Ryalls of International Forest Products (IFP), and Sean Davidson of Davis Index. The session examined how the speakers’ companies are navigating current market challenges, how the pandemic period affected the quality and volume of curbside recyclables, how the export market has changed, how their companies have focused on safety in recent years, and how they are attracting the next generation into the recycling industry, among many other topics.

PSI Chapter President Shawn State (far left) moderated the "OCC/Mixed Paper" panel discussion, with speakers (beginning with second from left) Sean Davidson, Jeff Ryalls, John Grinnell, and Evan Barrett.

Current market conditions are “testing the economics of recycling” and forcing recyclers to “focus on the basics,” including closely managing costs, narrowing their “freight circles,” and strengthening partnerships with suppliers to keep material flowing, Grinnell said. Finding and retaining truck drivers has been particularly challenging in recent years, prompting IFP to increase wages for drivers, compensate them when they face delays, and ensure they are home—rather than on the road—every night, Ryalls said.

In light of dwindling supplies of high grades and changes in the curbside recycling mix, recyclers are “seeing a lot more activity and appetite for mixed paper,” Barrett said. “We’ve figured out how to make it a more consumable product, one that requires less handling and processing.” Ryalls agreed, noting that “more domestic mills are using it than ever before, and we’ll continue to see that happen.”

On the export side, recovered fiber that used to go directly to China now goes to India, Europe, and Southeast Asia, where it often is converted to recycled pulp that ultimately ends up in China, the speakers noted. That dynamic adds complexity to the transportation market, Grinnell said. While recyclers used to get export bookings easily on freight lines, the carriers have dictated the market in the past three years, so IFP—for one—has “shipped material to where we could get a booking,” Ryalls said.

Regardless of the grade or the market, quality is the key factor, especially in the era since China imposed its National Sword program. “If you have the proper quality, you have less trouble with markets,” Barrett said. Fortunately, Ryalls added, “the industry is really moving in the right direction and doing things the right way.”

As for attracting the next generation into the recycling industry, Grinnell asserted that “one of the greatest things you can have in a career is a sense of purpose, and this business has it. That particularly resonates with the millennial generation.” The entrepreneurial aspect of the recycling business—in which everyone has a chance to contribute and make a difference—also appeals to younger workers, Grinnell said. “That gives our industry a unique platform.” And it’s important to give younger staff the opportunity to advance or they’ll move on, he said. As for where to find new talent, Ryalls recommended recruiting on college campuses, and Barrett said to look to different industries.

At the end of the “OCC/Mixed Paper” session (and at a “Fast & Furious” breakout session in the PPRC expo hall), Sean Davidson (pictured here) discussed how his company, Davis Index, plans to offer new price indexes, market analysis, and news for recycled paper and plastic commodities in the coming months. In his view, there is “no real structure or process in current price assessments.” Instead, Davis will apply to paper and plastics the same rigorous price-indexing practices it already uses for many metal commodities. The company plans to offer domestic U.S. price indexes as well as prices in the domestic markets of export countries for comparison.

***Stay tuned! Reports on other PSI-led workshops

at PPRC will follow in additional eBlasts!***

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