How Much Is Industrial Plastic Scrap Worth?

If your manufacturing facility generates thousands of pounds of plastic scrap, one of the first questions you may ask is:

How much is industrial plastic scrap worth?

Unfortunately, there isn’t a universal price per pound.

Industrial plastic scrap is a commodity, and its value can change according to resin type, quality, color, contamination, volume, location, transportation costs and current demand for recycled material.

Two companies can generate what appears to be the same plastic and receive different quotes because the underlying scrap streams are different.

Understanding those differences can help manufacturers improve their recycling programs and potentially recover more value from material they are already generating.

What Determines the Value of Plastic Scrap?

Several factors typically determine whether industrial plastic has value and what a buyer may be willing to pay for it.

1. Resin Type

The first question a plastic buyer will usually ask is:

What type of plastic is it?

Common industrial plastics include:

• HDPE
• Polypropylene (PP)
• LDPE
• LLDPE
• HMW polyethylene
• PET/PETE
• ABS
• Nylon
• Polycarbonate
• PMMA
• TPO

These materials have different applications and downstream markets.

Simply telling a recycler that you have “plastic scrap” usually isn’t enough information to determine its potential value.

Knowing the resin grade, manufacturing process and original application can make evaluation significantly easier.

2. Material Form

Plastic scrap exists in many forms.

A manufacturer may generate:

• Purge
• Sprues
• Runners
• Rejected parts
• Off-spec parts
• Regrind
• Pellets
• Film
• Pallets
• Totes
• Crates
• Dunnage
• Knockdown bins
• Buckets
• Bottles

Form matters because it affects processing and transportation.

Large pieces of plastic purge, for example, may require significantly more processing than clean regrind that is already appropriately sized.

Bulky plastic pallets may occupy considerably more trailer space than dense regrind.

The resin might technically be identical, but the economics can be different.

3. Color

Color can have a significant impact on plastic scrap value.

Natural and clear materials frequently provide recyclers and manufacturers with greater flexibility.

A manufacturer purchasing natural recycled HDPE, for example, can potentially add pigment and create numerous colors.

Mixed-color material already has limitations.

This doesn’t mean colored plastic has no value. It means that separating natural material from mixed colors can potentially create a more desirable recycling stream.

Manufacturers should therefore consider color separation before scrap enters a general collection container.

Once colors become mixed, separating thousands of individual parts may no longer be economically practical.

4. Contamination

Clean plastic is generally easier to recycle.

Contamination can include:

• Metal
• Wood
• Cardboard
• Paper
• Dirt
• Water
• Oil
• Chemicals
• Food residue
• Labels
• Adhesives
• Other polymers

Contamination adds processing costs and can sometimes make an otherwise recyclable load unacceptable.

For manufacturers, contamination prevention should begin at the production line.

It is considerably easier to keep a piece of metal out of an HDPE Gaylord than to find and remove that piece later from thousands of pounds of scrap.

5. Quantity

Volume matters in industrial recycling.

Transportation is a major part of the economics.

A recycler may be interested in 20,000 pounds of a particular resin but unable to economically collect 500 pounds of the same material from hundreds of miles away.

This is why industrial recycling programs often involve accumulating material until commercially viable quantities are available.

Manufacturers generating material continuously can have an advantage because consistent volume allows transportation and processing to be planned more efficiently.

6. Location and Transportation

Where your material is located affects its value.

A truck has to travel to your facility, load the material and transport it to a recycler, processor or end user.

Distance, fuel, freight rates, trailer utilization and material density all influence that cost.

This means the question isn’t simply:

“What is HDPE worth?”

A better question is:

“What is this quantity and grade of HDPE worth at my facility under current market and transportation conditions?”

7. Virgin and Recycled Resin Markets

Industrial plastic doesn’t exist in an isolated market.

Manufacturers purchasing raw material can often choose between virgin resin, recycled resin or blends of both.

When virgin resin becomes inexpensive, recycled material can face greater price competition.

When virgin resin prices increase or demand for recycled content strengthens, recycled resin can become more attractive.

Those changes can eventually affect demand for the scrap used to produce recycled material.

That is one reason your scrap can have a different value today than it did six months ago.

Why Did My Plastic Scrap Price Go Down?

A lower quote doesn’t automatically mean something is wrong with your recycling program.

Possible causes include:

• Reduced demand for that resin
• Lower virgin resin pricing
• Excess recycled material supply
• Increased freight expenses
• Manufacturing slowdowns
• Changes in downstream demand
• Greater contamination
• Mixed colors or polymers
• Lower quantities
• Changes in regional processing capacity

Some factors are completely outside your control.

Others aren’t.

How Can Manufacturers Improve Plastic Scrap Value?

The best approach is to focus on variables you can control.

Keep Resins Separate

Don’t mix PP with HDPE simply because both are plastic.

Separate collection containers should be clearly marked.

Keep Material Clean

Prevent employees from using plastic scrap Gaylords as general trash containers.

Separate Natural Material

If natural material represents a significant portion of production, consider keeping it separate from colored material.

Know What You’re Producing

Maintain records of resin type, grade, approximate weight and production process.

Generate Efficient Loads

Work with your recycler to determine how material should be accumulated and packaged.

Establish a Consistent Recycling Program

Recurring, predictable streams can be easier to manage than random collections of unidentified plastic.

Price Per Pound Isn’t the Entire Value

Manufacturers frequently focus exclusively on the quoted commodity price.

But the actual financial impact of recycling can include:

Scrap Revenue + Avoided Disposal Costs + Reduced Handling + Transportation Efficiency + Recovered Facility Space

Suppose a manufacturer receives slightly less per pound from a recycler that reliably removes material, reduces transportation complexity and keeps the production floor clear.

That arrangement could produce a better overall financial result than a higher quoted price accompanied by operational problems.

Industrial scrap should therefore be evaluated as part of the entire waste-management process.

Get a Quote for Industrial Plastic Scrap

Seraphim Plastics purchases and processes commercial quantities of post-industrial plastic generated by manufacturers and other businesses.

Materials can include HDPE, PP and other recyclable industrial plastics in forms such as purge, parts, runners, pallets, totes, crates, film, regrind and pellets.

If your business generates significant quantities of clean industrial plastic, the best way to determine its current value is to have the actual material evaluated.

When requesting a quote, provide:

• Resin type
• Material form
• Color
• Approximate weight
• Frequency generated
• Facility location
• Photographs of the material

The more information available, the easier it is to evaluate potential recycling options.

Industrial plastic scrap isn’t priced simply because it’s plastic. Its value comes from what it can become next.

Contact Seraphim Plastics to discuss your material and determine whether it fits an industrial recycling program.