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Understanding Recycling Economics Print

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Recovering value from material.

WHAT RECYCLING REVENUE DEPENDS ON

The volume of material recovered Its quality and cleanliness Commodity prices at the time of sale

WHY PRICE VOLATILITY MATTERS

Prices move substantially, and a material profitable one month may not be the next.

WHAT TO ESTABLISH

Which materials have reliable local markets.

WHAT TYPICALLY HAS VALUE

Metals, particularly non-ferrous Certain plastics Paper and cardboard Glass, where local processing exists

WHY LOCAL PROCESSING MATTERS

Material with no local buyer must be transported far, and transport frequently exceeds its value.

WHAT TO CALCULATE

Value per tonne, less collection, sorting, transport and handling.

WHAT DETERMINES MATERIAL VALUE

Cleanliness Separation by type Baling and density Consistency of supply

WHY CLEANLINESS DOMINATES

Contaminated material is rejected or heavily discounted.

WHAT CONTAMINATES IT

Food residue Mixed materials Moisture Non-recyclable items

WHAT TO ESTABLISH

Sorting that produces clean, separated material.

WHAT BALING PROVIDES

Density, which reduces transport cost per tonne.

WHY IT MATTERS

Transporting loose material is transporting air.

WHAT TO ESTABLISH ABOUT BUYERS

Who buys, at what price, in what quantity, and whether they pay.

WHY THAT LAST POINT

Non-payment by buyers is common in this sector.

WHAT TO TRACK

Tonnage by material Price achieved Rejection rates

WHAT TO REVIEW

Whether each material is still worth collecting.


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