Low Oil Prices Take Their Toll On Recycling Sector
That’s just as true today, despite many changes in societal priorities. Plastics are still ubiquitous, whether they’re made from oil or recycled from scrap. But a major change has come over the past 19 months, and there’s no telling how long it will be with us: The price of oil has fallen so low that it’s now less expensive to make plastic than to recycle it.
And this is hurting recycling, which is more than a social movement, it’s a $100 billion-a-year business in the United States. And it’s a complex one. One company sorts and cleans items such as used water bottles and food containers, then sells them to other companies that melt them down to make new items ranging from grocery bags to more water bottles.
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Now with the price of oil below $40 per barrel – down dramatically from more than $110 per barrel in June 2014 – it’s gotten to the point where making new plastic from oil makes more sense because there’s no additional process of cleaning and sorting, according to Tom Outerbridge, the general manager of Sims Municipal Recycling in Brooklyn, N.Y.
In an interview with National Public Radio, Outerbridge said negotiating with other companies over the price of cleaned and sorted plastics had become brutal over the past year. “You’re negotiating around a penny or a half-penny a pound,” he said.
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