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Companies warned as recovered fibre prices continue to fall

Posted at December 5, 2014 | By : | Categories : News | Comments Off on Companies warned as recovered fibre prices continue to fall

The Recycling Association has urged waste producers to temper expectations on how much value they can get from recyclable commodities in 2015.

Against a background of falling commodity prices and increased costs, businesses and organizations such as retailers and local authorities are being warned to be pragmatic in their expectations.

As well as the fall in commodity prices, operational costs incurred by paper and plastics merchants at depot level continue to rise – we are seeing increases in business rates, Insurance, labour and red tape such as driver CPCs, site licensing and general compliance.

It is becoming increasingly important for producers such as retailers, manufacturers, printers and local authorities to manage their expectations accordingly. There is simply not the revenue rebates to be gained from the sale of recyclables that there were even 12-24 months ago. Like any business, the collection and processing of recyclables has to be sustainable and a partnership approach needs to be adopted which reflects the true costs of the whole recovery system.

The waste & recycling sector is a growing industry and its evolution in the UK is something everyone should be proud of. However, we are in a commodity market and, as such, prices will fluctuate. We urge a sensible and pragmatic approach from waste producers to assist in sharing the burden in the difficult times as well as benefitting in the good times. By doing so, we can ensure a bright and sustainable future.

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