A method is provided of molding recycled EPS and other suitable expanded bead materials using a powder adhesive and steam. The method allows for molding EPS parts with over 5% and up to 100% recycled content. The method involves using an adhesive to fuse the regrind EPS particles under pressure from steam. The adhesive may be in powder form and preferably comprises small particles having a high surface area per unit weight and high static so the adhesive powder sticks to the surface of the regrind EPS particles during a dry blending step.