Local News: Recycling Grows Demand Falls
As Recycling Grows in Waco, Demand for Recycled Goods Falls
By J.B. Smith (Tribune-Herald Staff Writer)
From the Waco Tribune-Herald
Just as recycling in Greater Waco is taking wing, the recycling industry has gone into a free-fall.
Recyclers say the bottom has fallen out of the market for recyclables, and they blame the recession.
“When people quit buying products, there’s not as much of a need for boxes,” said Scott Jernigan, general manager of Sunbright Paper Recycling, which accepts paper and plastic from the municipal recycling programs of Waco, Hewitt and Woodway.
Jernigan said recycled cardboard prices have fallen in the last three months from $100 a ton to $25. Plastic that was selling for 25 to 30 cents per pound now sells for 3 to 15 cents, he said.
For now, Sunbright is stockpiling paper and bales of plastic in its warehouse and slowly selling what it can.
Jernigan is hoping the market will turn around in the next three to six months, but if it doesn’t, the company might have to start charging to take recyclables.
“That’s what we don’t want to do,” he said. “We want them to keep recycling.”
This may seem an inopportune time for growth in recycling, but Sunbright and city solid waste officials said they want to keep the momentum going.
“I talked to Sunbright a month ago about this, and they’re really dedicated to recycling,” said city solid waste director Ken Anthony. “Their response is, ‘We’re going to find a place to store the materials, and when the markets return, we can sell it.’ So right now, this isn’t having any impact on us.
“We realize what the economic times are, but at the same time we want to continue our growth so we can be prepared for when economic times change.”
In the last fiscal year, Waco’s recycling volumes grew a record 43 percent, from 1,685 to 2,415 tons.
The growth follows the city’s recent expansion of recycling programs. The city has new programs for recycling at schools, colleges, businesses, nonprofit institutions, apartment complexes and Baylor University athletic events. The city also is accepting green glass and electronic waste.
The apartment program hasn’t yet been heavily promoted, and so far only a handful of apartment complexes are participating, but Anthony said he would like to see it grow in coming years. The program is free to landlords who are willing to accept a large city recycling container on their premises.
Meanwhile, the recession also has hit the metal recycling industry hard, with prices falling by 80 percent or more in recent months because of a sharp drop-off in Chinese demand.
According to national news reports, the price of tin has fallen from $327 to $5 per ton in the last few months.
M. Lipsitz Co., the leading metal recycling company in Waco, has curtailed its business and is offering less for scrap metal, Anthony said.
Charles Johnson, the company’s general manager, declined an interview request for this story.
Published on Tuesday, December 09, 2008
