The recycling business has been hit hard in recent months by a one-two combo of decreased commodity prices and consumer demand.
As a result, small recycling companies are shutting down operations, while larger companies are stockpiling materials in the hopes that the market will rebound. Some recyclers are even charging to accept materials now, and others are sending collectors to the land fills.
China is the largest export market for U.S. recyclable materials. But as the global demand for new consumer products and packaging has fallen off, so has the market for cardboard, rubber and metal.
In the U.S., mixed paper is selling for $20 to $25 a ton on the West Coast, down from $105 in October, according to Official Board Markets, a newsletter that tracks paper prices. And recyclers say tin is worth about $5 a ton, down from $327 earlier this year. There is greater domestic demand for glass, so its price has not fallen as much, according to the New York Times.
Although economics have driven the recycling push in recent years the businesses and homeowners who set their cans and bottles by the curb are not getting paid, which suggests there is strong public desire for recycling to continue, despite a lack of profitability. Some have suggested that if the market for recyclables doesn’t improve, recyclers may need government subsidies to continue.
But in the meantime, it appears that recycling is still more cost effective than sending materials to landfills. According to the New York Times report, Boston official said even paying recyclers to collect its paper would be cheaper than sending it to the dump at $80 a ton.
Read the full report at the link below.
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