Worldwide recession crunches recycling

The lagging global economy has created a huge problem for recycling firms and local authorities - no one wants to buy rubbish any more.

Councils across the UK have reported lower prices and less demand for recycled materials.

As industries across the world enter a downturn, the demand for raw materials has declined - knocking down the price of waste resources and scuppering waste management strategies which until now had seemed well thought out.

The Environment Agency this week revealed that in the last month 56 councils have applied to stockpile waste that can no longer be recycled for a profit.

To support local authorities through the downturn, the government-funded Waste & Resources Action Programme (WRAP) has set up an online advice forum.

Local authorities can visit the website and post any questions they have relating to material prices and the worldwide recession.

WRAP will respond with answers that will be visible to other users.

WRAP is adamant that demand for high-quality recycled goods is still going strong, but is concerned that if it begins to seem as though recycled materials are unwanted, councils and the general public may lose their enthusiasm for recycling.

In the US, prices for recycled goods have already entered free fall.

The price of recycled cardboard has fallen from $100 per ton to $25 per ton in the past three months.

Meanwhile, plastic that once sold for $0.20-$0.30 per pound(lb) now only achieves $0.03-$0.15 per pound.