Meaning
Market pricing reductions are applied to thermoplastic scrap generated during manufacturing processes compared to the price of prime virgin resin. A post industrial scrap discount reflects the lower quality and potential contamination of molding sprues, runners, and off-spec parts. It allows molders to source raw material at a lower cost, which improves the margins of less demanding molded products.
The magnitude of this discount depends on the sorting, cleanliness, and consistency of the scrap. This pricing adjustment applies only to industrial waste streams and excludes post-consumer materials.
Price Reduction
Discount levels are determined by the effort required to reprocess the scrap into usable pellets. Highly sorted, single-polymer scrap commands a smaller discount, while mixed or dirty scrap is heavily discounted. Molders negotiate these prices based on the current market price of virgin resin.
This keeps the scrap economically attractive.
Processing Impact
Using reprocessed scrap can introduce process variations due to inconsistent melt flow properties. Since the material has already been through at least one heat history, it may have lower molecular weight. Molders often blend this scrap with virgin resin to maintain stable molding conditions.
This prevents the occurrence of part defects.
Economic Value
Incorporating discounted scrap reduces the overall material cost for the molder. It enables them to offer competitive pricing to their customers while maintaining healthy margins. For high-volume runs where material costs dominate, this discount is a major economic factor.
It supports a more circular manufacturing model.