More Scrap Recycling Woes

Barberton Junk Cars is back with more news relating to vehicle scrap and recycling. We are an auto buyer that specializes in paying cash for cars. As a buyer of scrap cars with a commitment to protecting the environment, you can be sure we are a junk vehicle buyer that will not pollute our air or water. Green companies like our scrap my car operation are good for the environment and also create green jobs.

On May 1, 2016, Wilson Walker of CBS SF Bay Area, composed an article titled ‘Weight Of Cheap Commodities Crushing North Bay Recycling Company’ with the following details: “Joe Garbarino has been moving trash for over 60 years, and for most of those he could do it profitably. Not so much anymore. Despite that he recycles 75% percent of what comes in he is being crushed by the weight of low commodity prices. Garbarino started working as a garbage man in the 1940s. 

It has been a while since recycling became popular in CA. Back then, the promise was saving the planet and it also made economic sense, since collecting recyclables was worth it. For years, that worked enough to keep the cans & bottles moving. According to him, China, Taiwan and Hong Kong wanted recyclables. A lot of our waste wasn’t getting recycled here, but getting shipped over to China’s surging economy—which has since collapsed. The price of oil is directly tied to the value of our used plastic bottles. When oil prices were up, plastic was being made out of plastic, now they make plastic out of oil.

If recycling is in trouble here in CA, the rest of the US is in a crisis. High costs have major cities like Houston scaling down curb-side pick-ups, and dozens of plants for recyclables have been shuttered, sending more waste into landfills. Waste Management, the US’ largest such hauler, has closed 20% of its recycling-based facilities. For Joe Garbarino, he’ll likely have to increase collection rates, to cover costs of handling plastic that nobody wants to buy.” The complete article is available at this link.

So we encounter yet another story of a recycler who is struggling with the reduction in scrap and recycling related value. Any buyer of scrap cars can likely express the same such concerns. When we pay cash for cars, our auto buyer is able to be more responsive in his role as a junk vehicle buyer. Providers like the one mentioned in the story in CA, are likely bound by pricing established over a multi-year contract, thus has fewer options to counter the downturn. We are optimistic that the overall market will begin to improve, but in the meanwhile the best course of action is to limit your losses.