2020-048 Recycling Market UpdateDate: May 8, 2020 Report No. 2020-048
INFORMAL STAFF REPORT
TO MAYOR AND CITY COUNCIL
SUBJECT:
Recycling Market Conditions Update
BACKGROUND:
The Solid Waste and Recycling Department provided the City Council an update on solid waste
and recycling services amid the COVID-19 pandemic in the May 1, 2020 Friday report. While the
City continues to identify and utilize opportunities to beneficially reuse materials collected as part
of its recycling program, staff continues to implement strategies to improve the quality of the
recycling stream, educate customers, and track results. Current and historical recycling market
conditions and contamination trends are now being provided as part of this report.
DISCUSSION:
The coronavirus pandemic has added a layer of complexity to an already fluctuating and fragile
recycling market, creating unprecedented challenges for material recovery facilities in meeting
sustainability commitments. In a recent webinar held by the National Recycling Coalition, U.S.
EPA and industry consultancy RRS, experts laid out current market conditions and their
projections for the future, outlining that the entire recycling system, from collection through end-
market demand, is feeling crunched.
The market value of old corrugated cardboard (OCC) has increased by 62%, reaching its highest
level in almost two years, $71 per ton versus $45 per ton last month. Mixed paper remains negative
but shows recent price increases, with a national average price of negative $1.88 per ton, compared
with the negative $2.50 level it has been at for the past year.
Curbside metal prices are down significantly, trending 30-40% down from this time last year. Steel
sells for $97 per ton versus $169 per ton in the same month last year. Aluminum is now $40.13
per ton versus $56.13 per ton in the same month last year.
For plastics, the market impact has been from historic drops in oil prices, meaning virgin plastic
could be significantly cheaper than recycled resin for the foreseeable future. The national average
price of PET beverage bottles and jars is 9.25 cents per pound, compared with 15.54 cents per
pound one year ago. The natural high-density polyethylene (HDPE) price dropped again this
month, now at 33.44 cents per pound, compared with 37.13 cents this time last month. This grade
traded at 21.88 cents per pound one year ago.
In addition to market turbulence nationwide, contamination of the recycling stream is on the rise.
In Denton, when comparing April collection volumes to February’s pre-COVID data, residential
tonnages collected have increased by 103 tons per month while commercial collections have
yielded 94 fewer tons in that same time period. Combined, we are collecting approximately the
same volume of material, 9.31 tons more for the month of April, but can recycle 47 tons less than
Date: May 8, 2020 Report No. 2020-048
pre-COVID due to contamination increases. This has resulted in a net loss of $600 per month in
commodity revenue. The characterization of this material is significantly more residential than
prior months and significantly (6%) more contaminated, increasing the City of Denton overall
combined contamination rate to 44%. Here are some recent examples of the quality of recycling
loads delivered the materials recycling facility (MRF). These loads were highly contaminated with
plastic film, organic matter, textiles, and non-program material.
Residential
The City of Denton continues to apply outreach efforts to combat increases in contamination. The
residential cart tagging program remains active. Using social media outlets, Public Outreach staff
continues to communicate best practices and program materials (see below). We are aligning our
messaging with the “Know What To Throw” regional collaborative effort to improve the quality
of recycled materials and decrease contamination managed through the North Central Texas
Council of Governments (NCTCOG).
Date: May 8, 2020 Report No. 2020-048
Commercial
Due to the COVID19shelter in place orders, the Solid Waste and Recycling department elected
to place route audits on a temporary hold. We continue to monitor the routes and contamination.
Prior to mid-March over 300 audits on seven routes had been completed, addressing the most
highly contaminated first. The targeted routes are selected by percentage and frequency of
contamination. Each route is inspected stop by stop and each container is examined for
placement, condition, clear labeling, and the materials. Each container is given a visual
percentage of contamination by weight. Outreach efforts will be made for each container over
10% contamination. Staff will work with each business and provide educational materials
(pictured below).
CONCLUSION:
Solid Waste and Recycling staff continue to implement nimble strategies to improve the quality
of the recycling stream, centered on digital communications, data monitoring of markets and
collected tonnages trend analysis. While we have lost momentum in our auditing programs due to
the pandemic, we are creating plans to continue with new practices and increased communications
with our materials recycling facility. Pratt audits have transitioned from facility visits to reviewing
pictures on a shared drive and providing timely responses to concerns. We are proactively
monitoring data to calibrate the contamination percentages and ensure we are being as supportive
as we can considering current circumstances and constraints. A recent trend in wet contamination
is of particular interest. and our next efforts will be focused on the collection of empty, clean, dry,
and loose programmatic materials.
A June 16th work session presentation is being prepared to review recycling drop off site efficiency
and operations.
STAFF CONTACT:
Brian Boerner
Director of Solid Waste
940-349-8001
Date: May 8, 2020 Report No. 2020-048
REQUESTOR:
Council Member Meltzer
PARTICIPATING DEPARTMENTS:
Solid Waste and Recycling
Public Outreach
Sustainability
STAFF TIME TO COMPLETE REPORT:
3 hours