Oil Price Impacts Recycling
Cash 4 Cars Cleveland is back with our latest post relating to how car buyers process a salvage vehicle, the ways of selling an old car and other related topics. We pay money for a scrap car or salvage car 6 days a week throughout Berea, Bedford, and Pepper Pike. Those seeking a quote for a junk car in Aurora, Shaker Heights, or North Randall can contact our car buyers to receive money for a scrap car, totaled car or other salvage vehicle. Today’s topic changes gears a bit and discusses the impact that sagging oil prices are having on other aspects of the recycling business.
In a January 17, 2016 article in oilprice.com authored by Andy Tully titled ‘Low Oil Prices Take Their Toll On Recycling Sector’ we learn the following: “Despite many changes in society, plastics are ubiquitous, whether they’re made from oil or recycled from scrap. Over the past 19 months, the price of oil has fallen so low that it’s now less expensive to make plastic than to recycle it. This hurts recycling, which is more than a social movement, it’s a $100B business in the US. One company sorts & cleans plastic bottles & food containers for sales to other companies that melt them down to make new items from bags to bottles etc…
The price of oil is below $40/barrel – down considerably from more than $110/barrel in June 2014 – it’s gotten to the point where making new plastics from oil makes more sense to avoid the processes of cleaning and sorting. In an interview with National Public Radio, Tom Outerbridge, who manages Sims Recycling in NY says negotiating with other companies over the price of cleaned & sorted plastics has become very difficult lately. The low pricing is particularly tough in NY, but isn’t exclusive to other cities with much lower costs of living. ReCommunity Recycling of PA, which includes operations also in NJ, says there business is hurting as well.
Commodity markets have been at historic lows, and there is a dramatic reduction in the value of scrap materials. Scrap plastic was selling at $2,000 per ton and has now fallen to approximately $30 per ton. Things are even worse at Genesee ARC of NY, an outlet that provides employment opportunities to the disabled. Next month they will be forced to lay off 14 disabled workers and two full-time staff members as a result of the low price of oil. Donna Saskowski, ARC’s executive director says they’ve hit the bottom of the business, as prices have dropped 40 to 60%. Most in the industry are experiencing similar struggles.
There seems to be a great deal of uncertainty for the future. Many expect the price of oil to remain flat for at least another three years. For the sake of the plastic recycling industry, hopefully this is not the case.” The article can be read in its entirety at this link.
Selling an old car
We make it easy to get money for a scrap car or salvage vehicle in Richmond Heights, Solon, and Walton Hills. You simply contact our car buyers for a quote for a junk car and salvage car removal via tow in included. There are a few salvage car buyers in the greater Cleveland area, but none have the same commitment to eco-friendly recycling within the auto scrap and removal business. When selling an old car to us you will know that over 85% of the materials contained in the salvage vehicle will be recycled to either extend the life of a car still on the road or to bring life to new products. Residents of North Olmsted, Avon, and Fairview Park are encouraged to call us for a junk car quote at (216) 359-1010. Those seeking cash for cars in Chesterland, Seven Hills, or Northfield that contact us regarding a price for a junk car, can expect same-day or next-day damaged vehicle removal. Is your car sitting at a local Firestone Service Center, a Midas or NTB location in Cleveland Heights, Wickliffe, or Brecksville? We are happy to pick up any damaged on non-running vehicle in Middlefield, University Heights, or Warrensville Heights.