Meaning
Financial assessment establishing the economic value of re-processed internal or post-industrial scrap polymer relative to prime virgin resin guides material blending economics. Regrind valuation accounts for thermal history degradation, particulate contamination risk and processing flow variation present in reprocessed material. The calculation stops applying to clean virgin polymer resins that have undergone no previous melt processing cycles.
Recycle Discount
Cost accounting models apply a financial discount to regrind stock to reflect potential mechanical property loss and processing instability. Lowering regrind asset value on balance sheets ensures realistic inventory valuation and prevents cost overstatement. High quality regrind with known thermal history retains higher value than mixed or contaminated post-industrial scrap.
Thermal History
Repeated extrusion cycles break down polymer chains, reducing molecular weight and altering melt flow characteristics. Degraded regrind exhibits lower melt strength and reduced impact resistance compared to virgin polymer resin. Quality labs test melt flow index values of regrind lots to establish safe blending ratios for primary production lines.
Feed Stock
Incorporating regrind into primary extrusion feeds reduces virgin material purchase requirements but introduces raw material variability. Processing inconsistent regrind flake sizes causes hopper bridging and feeder rate fluctuations in automated dosing systems. Pilot testing with pristine factory regrind overstates product performance compared to using commercial post-industrial scrap containing variable heat histories.
Resin suppliers do not guarantee processing performance when regrind content exceeds recommended blend limits. Setting regrind valuation too high on internal accounting records inflates inventory assets and masks the true cost of scrap generation.
