Tag Archives: recycling industry

A Dirty Business: Recycling Other People’s Waste

Across India, from poor villages to expensive residential areas of cities, millions of trash pickers are at work to collect what other people dispose. They are called raddiwalas, ragpickers, scavengers and waste managers. Some go door-to-door, others gather iron rebar and used bricks on construction sites, still others clean parks and city streets. There are even specialists who gather hair, which is exported in bulk for wigs.  They’re the starting point of a multilayered, $25 billion industry in India that advances through increasingly specialized middlemen and industrialists to eventually turn garbage into new objects. The work is a moneymaker for conglomerates as well as a route out of poverty for some of India’s poorest people.

All of that has been upended by a crash in a global garbage market dominated by two players: China, which buys most of the world’s garbage, and the U.S., which sells the most. Last year, China dramatically cut the amount of garbage it buys. The reduced demand from China and continued supply from the U.S. flooded the world trash market and drove down the price of garbage everywhere….Indian recycling companies took advantage of the deep discounts and started importing more trash from the U.S. and elsewhere. In 2018, the imports of mixed scrap plastic to India rose 33%.  The jump in supply pushed prices down for the low-end Indian workers who pick through mountains of locally produced trash for raw materials to sell.

That’s impacting an Indian trash economy powerful enough to have prompted its own migration pattern: thousands of families left their rural villages to collect garbage in cities. Now, with their garbage hauls worth less, many are returning home.  For the pickers, the going price for a kilo, or 2.2 pounds, of plastic water bottles, which used to bring around 45 rupees—roughly 65 cents—is now worth only about 25 rupees—or 36 cents.The trash glut also lowered profits for industrial recycling companies who turn the trash into usable materials. Plastic pellets, the end-product after processing some plastic scrap, went from 80 rupees to 45 rupees a kilo.

China  ratcheted up restrictions on imports of recyclable materials to force its recycling industry to absorb more of the waste generated within the country. China also is nudging the country away from the role of accepting others’ garbage, which is viewed as a dirty industryThe global trash glut means India’s own trash is worth less to its domestic recyclers.

Excerpts from By Eric Bellman and  Vibhuti Agarwal, ‘We Are Swamped’: How a Global Trash Glut Hurt a $25 Billion Industry, July 28, 2019

The Future of Recycling

About 90 percent of the 8 billion soda cans sold in California every year get turned in for recycling and a 5¢ refund. But cheaper commodity prices, plus lower Chinese demand for America’s used bottles and cans, have upended the economics of the state’s recycling industry. Over the past two years, California’s recycling rate has fallen enough to relegate more than 2 billion containers a year to landfills.  About 700 of the 2,400 redemption centers California had in 2011 have closed, according to CalRecycle, the state’s recycling agency, the majority in the past year. The mostly small companies that run the shedlike centers in parking lots outside grocery stores are being squeezed by a commodity bust that’s lowered the price they receive for recycled glass, plastic, and aluminum. The price they have to pay consumers for this detritus has stayed fairly high. A state subsidy program that was supposed to help make up the difference hasn’t kept up.,,

The decline in the value of scrap is draining California’s Beverage Container Recycling Fund, which relies on the proceeds from bottle deposits consumers pay upfront to reimburse redemption centers. As of June 30, it had $195 million, down from $246 million a year earlier. At this rate, it’s expected to run out of money in the first half of 2018.

“There’s been a massive crisis and a massive failure to respond to that crisis,” says Susan Collins, president of the Container Recycling Institute, an advocacy group in Southern California. Collins says the state needs to boost its “outdated” payment formula by as much as $1 million a month or follow other states, where bottling companies pay recycling centers a fixed amount per container. A spokesman for CalRecycle says the state is looking at all options.

China is the largest destination for U.S. scrap exports, taking about 11 percent by volume in 2015. Since 2013, under a government program called Operation Green Fence, China has been aggressively inspecting and in some cases turning away bottles and cans that are mixed in with food waste or other nonrecyclable scrap. The policy has forced waste processors in the U.S. to screen discarded containers more carefully, driving up costs and diminishing the value of some waste.

Excerpts from California’s Recycling Industry is in the Dumps, Bloomberg Business Week, Oct. 6, 2016