You may have heard that some municipalities are recently being charged for paper recycling. Why the sudden change? There are a number of factors that can impact the pricing for recyclable paper, plastics, and metals. These factors include the strength of the US or World economy, weather, transportation costs, and what we are now experiencing, government intervention, (see “China” here, here and here.)
There are times when these factors combine, and the result is a dramatic decline in material value. Sometimes it only takes just one or two to cause a negative impact.
What do all these factors have in common? They result in reduced demand.
The recycling markets have and always will be dictated by supply and demand, regardless of what type of regulatory laws and guidelines are put in place by local or state government. Successful recycling is determined by the value of the material being recovered. If the value decreases – the “costs” related to collection, transportation, processing, and marketing these recyclable materials still remain.
This is something we are currently experiencing. The State of Massachusetts DEP instituted “waste bans” as part of their overall Solid Waste Matter Plan in 1990. This plan included the ban of a number of materials from landfills, including cardboard and paper. The state should be applauded for their forward thinking – however bans and regulations such as these can only be supported if strong, long-term end-markets exist. You cannot create supply and then expect demand to follow.
Unfortunately implementing such bans does nothing to create market demand for these grades of paper, at least not in the short-term. When we experience conditions of oversupply, these can have a negative affect – as collection and processing costs are now in place, and there are no options other than to continue. The result is that cities, towns, and commercial entities are now being charged a fee to recycle paper and other materials because unlike before, the end value no longer covers the costs outlined above.
The MassDEP is now developing a new “Beyond 2000 Solid Waste Plan”, setting new “Zero Waste” goals. How are we to obtain zero waste – when we do not have sustainable markets in place to consume what we are now generating – without even discussing future growth?
Due to the current oversupply situation, a number of industry groups and recycling related organizations are now requesting that MassDEP implement “waivers”, thereby circumventing these waste bans. The reason? They need State approval to begin to put recyclable materials that currently have no markets into landfills.
Who will cover the cost associated with landfilling thousands of tons of material which is no longer recyclable? As stated in the title of this article, “WHY DO WE NOW HAVE TO PAY TO HAVE OUR PAPER RECYCLED?”
One thing businesses and municipalities can do to combat the problem of putting recyclable material into landfills or paying to recycle is to keep the paper and cardboard clean. In a previous blog post, we covered the importance and value of clean corrugated cardboard. Many municipalities are now asking residents to separate boxes and to contact Public Works department about a pick-up so that it doesn’t get contaminated by the single stream collection process.
For additional ideas or to get a competitive quote for your paper recycling, contact us.