The authors of this article in Renewable News thought it would be interesting
to readers who are in the recycling industry to see the kind of commodity pricing issues that were discussed in a recent analysis for a large recycling project study.
The data on price variability and waste composition were used to prepare several scenarios in Pro Forma modeling to predict the “downside” of market shifts in project performance. In our experience, this provides stakeholders with good ideas of potential market risks and the potential sharing of anticipated revenues with high, medium, and low-end pricing of recyclables.
The U.S. is heavily dependent on the Chinese market for absorbing a major percentage of
recyclable paper and plastics we generate. So, potential changes to that market initiated by the Chinese is a cause for concern and for assessing contingencies. Officials for the Scrap Recycling Industries, China Scrap Plastics Association, and Bureau of International Recycling all indicated that China may be rolling out a new policy for expanding the list of banned materials and tightening the quality standards of recyclables coming into their country. Increasing knowledge of the markets and the impact on your program is a good way to get ahead of the potential impact of China’s new restrictions.
Increasing knowledge of the markets and the impact on your program is a good way to start getting ahead of the potential impact of China’s new restrictions.