EPS Salvage material

EPS Salvage Material Faces Global Trade Disruption After U.S. Ban

Expanded Polystyrene (EPS) salvage material, once considered a valuable component in the international plastic scrap market, is now at the center of global regulatory and environmental debate. Recent legislation in the United States has placed strict limitations on EPS usage, disrupting the flow of this material to major importing countries, including the United Arab Emirates

What is EPS Salvage Material?

EPS salvage material refers to used or discarded expanded polystyrene products such as foam takeout containers, plates, cups, and packaging that are recovered for recycling or reuse. Lightweight and moisture-resistant, EPS has been widely used in the food and packaging industries but is notoriously difficult to recycle.

California Bans EPS Food Service Ware

On April 4, 2025, the California Department of Resources Recycling and Recovery officially began enforcing a ban on EPS food service ware, a policy passed under Senate Bill 54 in 2022.

The law required EPS producers to demonstrate a minimum 25 percent recycling rate for all EPS covered materials by the end of 2024. This benchmark was not achieved, prompting a complete halt in the legal sale, import, or distribution of EPS food ware across California.

Though consumers are not penalized directly, manufacturers, importers, and retailers are now legally barred from supplying these foam products. The move significantly reduces the volume of EPS salvage material entering the recycling stream, especially from California, a major exporter of scrap plastics.

Health Hazards Associated with EPS

EPS is not just an environmental burden—it is a health concern. The material contains styrene, a substance that the U.S. Department of Health and Human Services lists as a possible human carcinogen. When EPS containers are used with hot food or beverages, styrene can leach into consumables, posing health risks over prolonged exposure.

In addition, EPS breaks down into microplastics, contaminating oceans and food chains. Its lightweight structure allows it to scatter easily, polluting coastlines, waterways, and ecosystems.

Impact on Dubai scrap market and Recycling Industry

The Dubai, a key player in the global scrap trade, has historically imported large volumes of plastic waste from the United States—including EPS salvage material—for recycling and processing. Reduced availability of salvage material in global markets is influencing the Dubai scrap rate, leading to higher scrap price and decreased supply for local recycling businesses.

With California’s ban now active, exporters from the U.S. are expected to face tightened restrictions and reduced volumes of EPS salvage material, affecting overall supply to Middle Eastern markets.

This development may lead to

This change is expected to create a noticeable shortage of EPS scrap material available to recyclers operating in the UAE. As a consequence, many recycling businesses may face rising operational costs due to the need to source alternatives or upgrade their existing systems.

The market, in response, is likely to experience a gradual shift in dynamics, where traders and recyclers begin turning toward other recyclable materials such as PET, HDPE, or even biodegradable plastics to maintain continuity in their operations and meet evolving environmental standards.

For businesses dealing with EPS recycling or trade in UAE scrap market, the ban represents both a logistical challenge and a strategic inflection point. Companies will need to reevaluate sourcing options, recycling technologies, and possibly diversify into sustainable materials that align with emerging international regulations.

The Future of EPS Salvage Material Trade

As more U.S. states and global markets follow California’s lead, the availability of EPS salvage material for international trade will continue to decline. For countries like the UAE, which rely on imported scrap for domestic recycling operations, this signals a need for long-term planning.

EPS salvage material is widely used during the Ramadan fasting time, especially for take-home food during fasting hours. Mosques, restaurants, and charity kitchens often rely on disposable foam containers to serve iftar meals. This seasonal spike in usage significantly contributes to the overall volume of EPS waste, raising environmental and health concerns linked to its excessive and short-term use.

Investment in modern recycling infrastructure, adoption of more sustainable plastic alternatives, and alignment with global environmental standards are critical steps forward. The phasing out of EPS marks the beginning of a new era for the global plastic waste economy—one that prioritizes human health, environmental integrity, and material sustainability.