Downturn hits market for recyclable goods

20 November 2008

Councils are being urged to consider overhauling recycling collections and selling material in bulk with other authorities to protect themselves from an ‘unprecedented’ downturn in the market for recyclate.

The Environment Agency acknowledged that ‘the speed and breadth of the downturn in demand and price for some recyclable waste is unprecedented’. Corus, which had until recently been paying £230 per tonne for metals, is no longer buying any from councils.

The Local Government Association has requested that the Ministry of Defence make facilities available for storage should the market for metals, paper, card and plastic not improve soon.

An LGA spokesman said ‘there is no immediate need’ for new storage facilities, but that it was ‘prudent to be prepared, should the market not pick up soon, and local authorities and their contractors run out of storage space’.

The EA is allowing companies to temporarily store extra recyclable materials at existing facilities and highlighting that recyclate can be stored for 12 months without a permit ‘in a secure place’.

Environment minister, Jane Kennedy, stressed the need to focus on producing quality recyclates ‘to weather the instability of the commodities markets’, which the Technical Advisors’ Group said means that ‘amendments to recycling services may need to be made’.

Tim Walker, TAG regional chair for Northern Ireland, said: ‘Giving greater expectations of quality, local councils need to take stock and be prepared to make changes in response to market conditions.’

Storage needed to be ‘fit for purpose,’ he said, so paper must be stored inside if it was to be sold for A-grade paper, while technologies for segregating collected material could counter potential contamination of comingled materials.

Walker, of Belfast City Council, said authorities in Northern Ireland were suffering lower price reductions because they sold their waste in three regional groupings.

‘The loss of revenue is going to be greater for smaller councils, so it could pay to consider larger contracts with neighbouring authorities.’

The LGA was due to issue guidance on how councils could maximise the value of recyclate as Surveyor went to press.

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