Title: [GreenYes] Tanking Recycling Markets - A Perspective
Hi Ann, et al:
Here is a recent posting in an industry newsletter of interest relative to
the topic of the tanking recycling commodity markets:
"Rather than gently peeling a bandage away from a wound gradually, it is
less painful to remove it by quickly ripping it off all at once. Similarly,
it is less painful to accept the inevitable than to linger in a business
decision. These unavoidable pains cannot heal until they are seriously dealt
with. This pricing exposes the fact that more focused attention is required
to save our recycling programs.
In the fiber market, the World economy is telling recyclers to slow balers
down. Due to the economic nose dive, the need for raw baled fiber
commodities has come to a screeching halt. Fiber buyers know that as long as
exporters are not in the market they can name their own price on
non-contractual material. This is extremely bad news for recycling
organizations and environmental groups that have worked hard over the years
to build up community recycling programs.
So, unless your program is being subsidized by governmental funding OR you
are a hauler that is able to collect fees for providing recycling services,
all post consumer commodities being produced right now are under the cost of
production. With the inability to borrow funds during this down period, we
will soon start to see the liquidation of recycling depots in every state.
This collapse will occur as quickly as their auctions can be scheduled.
There are some states, such as California, where hauling cardboard to a
landfill is prohibited by State Land Quality Rules. In those states,
recyclers who operate material recovery facilities for recyclables and
construction debris need to adapt immediately for the abundance of inbound
cardboard that will be brought in. New added surcharges will be inflicted
ranging from $20 to $60 per ton (depending on the operating area's
This will especially be a shock to recyclers bringing in the material who
will think. "Are you seriously charging me for the cardboard I brought to
sell to you?!"
Principal & V.P. Business Solutions
WIH Resource Group
Environmental & Logistical SolutionsTM
Phone: 480.241.9994 ~ Fax: 623.505.2634
From: GreenYes@no.address [mailto:GreenYes@no.address] On Behalf
Of Ann Schneider
Sent: Saturday, November 08, 2008 5:43 PM
Subject: [GreenYes] recycling markets - source separated v single stream
Just curious if anyone can tell if the current down market is making
source separated materials more salable than single stream materials. Or
is it too soon to tell if the tightening markets are pushing for higher
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