Recycling Costs May Be Hitting Everyone in the Wallet Soon

The only thing constant with recycling markets is change. The volatility of pricing for recyclable materials over the years has been challenging at times and now the recycling market is facing a crisis. China has lowered the limit of allowable contaminate in recycled material to levels so low it basically has constituted a ban on the acceptance of recyclables China has previously accepted in large quantities. When using the term contamination in this industry, it refers to the amount of non-recyclable material that is mixed in with the remainder of the recycled material. Historically, shipments with a lower amount of contamination have more value. Now the Chinese have established an acceptable limit that is impossible to meet.

In various areas around the country, materials tossed in the household recycling bins and sorted in large facilities is stacking up with nowhere to go. Some of the material is finding its way to the landfill as the situation continues to worsen.
In some areas of the country a new recycling fee has been instituted for household customers to offset the cost of recycling, which has climbed significantly since the effective closure of the China market.

China has also committed to utilizing the growing amount of consumer generated recycled materials within their own country as opposed to relying so heavily on sources from other countries. China’s growing manufacturing sector has a voracious appetite for recycled material. The fact China can have this type of negative affect on our waste system and segments of our economy brings to light another byproduct of America losing its manufacturing base. We ship recycled plastics to China and we buy the same plastic when we purchase a cell phone or a number of other consumer items.

We will carefully monitor how the suffering recycled materials market will continue to affect the country and if we will feel the effects here at home.