Date: December 14, 2008
Source: News Room
Community recycling programs across the US are taking a big hit this year as the global economic downturn is eroding demand and driving down prices paid for recycled materials. Some communities are likely to give up recycling programs altogether especially since once profitable programs now represent a significant expense. The collapse in the recycling market is a direct by-product of the financial crisis, as demand has slumped for material to be converted into everything from boxes, to car parts and construction materials. For example, newsprint, which was selling for $160 per ton as recently as September, is now selling for less than $40; corrugated cardboard is down from $50 per ton to $10; tin is down from $25 per pound to $5. Aluminum is off 34% this year while copper is off by as much as 52%. Some materials such as glass and plastic cannot even be given away, forcing communities to instead pay for their disposal in a landfill. As a consequence, collection and disposal costs are likely toincrease as communities impose surcharges or raise prices to cover their costs and as demand for landfill disposal increases.
Among Many Places Whose Recycling Programs Are Suffering:
Kanawha County, W.Va.: Residents were asked to stockpile their plastic and metals, which the county essentially quit picking up last week.
Frackville, Pa.: The recycling program was suspended because it's cheaper to dump than to recycle.
Yellowstone National Park, Mont: The recycler now takes only cardboard.
Austin: October's $27,444 in net sales of recyclables was down 75 percent from city estimates. Austin expected to recoup $1.9 million this fiscal year after reselling paper, plastic, glass and aluminum collected curbside. Ecology Action of Texas, a nonprofit that depends on recycling programs for the bulk of its income, expects to earn only half of a projected $5,000 a month from its recycling operations. Cycled Plastics Ltd., a private recycling company, laid off 15 employees last month.
East Lansing, Mich.: Recyclable collection and resale are running a monthly deficit of about $6,000, but the city's budget didn't anticipate income from the program. "We're not going to have to cut any [recycling] services," said Dave Smith, East Lansing's environmental specialist.
Tucson, Ariz.: The city still makes about $100 per ton on recycled materials. Officials credit their contract with Recycle America, which is run by Waste Management. Recycle America sells what Tucson collects and keeps half the revenue. The city gets the other half, minus a tipping fee, now $16.86 per ton. In October, the city received $133,687.34, and almost $10 million during the first seven years of the contract.
Sources: The New York Times, Austin American-Statesman, Lansing (Mich.) State Journal, The Associated Press
The prices of many recyclable materials have plunged in the last few months
Recycled newspaper: $156.96 a ton in September; $35.27 a ton in November.
Cardboard: $89.93 a ton to $44.54 a ton.
No. 2 plastic recyclables: $880 a ton to $260.
Source: Waukesha County, WI Government
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