US Recycling Companies Face Upheaval From China Scrap Ban (wsj.com)

An anonymous reader quotes a report from the Wall Street Journal: U.S. companies that collect waste for recycling are weighing higher prices and other changes to their operations since China upended the industry when it stopped accepting much of the scrap material Americans have been shipping there for decades. The top two solid waste services companies in the U.S., Waste Management Inc. and Republic Services Inc., both recently pulled back profit projections in their recycling divisions based on China's new policies, which have created a glut in scrap markets and sent global prices for scrap material plummeting.

According to the Institute of Scrap Recycling Industries Inc., 31% of U.S. scrap commodity exports worth a total of $5.6 billion were sent to China last year. It was cheap for recycling collectors to send scrap to China because ocean carriers offered deeply discounted prices to get shipping containers back to Asia after they had arrived at U.S. ports packed with goods made in Chinese factories. "We were happy to send material back in them for pennies on the dollar," Mr. Coupland said. Now it's gotten more complicated. Mr. Coupland said Republic Services has found new buyers in Malaysia, India and other markets, but fewer ships make direct trips there from the U.S., driving up transportation costs. Global prices for used materials have plummeted, so Republic loses money on most of the recycled scrap it now sells overseas. That cost is increasingly likely to get passed along to U.S. households and businesses.