The loss of waste recycling personnel is serious

More and more people are unwilling to engage in waste recycling.

According to the "Research Report on the Development of China's renewable Resources Industry (2016)" issued by the China Renewable Resources Recycling Association, In 2015, there were 130,000 recycling enterprises in China, 7,000 fewer than in 2014; There were 300,000 recycling stations (points) of all kinds, 50,000 less than in 2014; More than 15 million people were employed in the recycling industry, more than 3 million fewer than in 2014.

Low scrap prices are among the reasons for the turnover. In 2015, the recycling value of the top 10 types of renewable resources, including scrap steel, scrap non-ferrous metals, scrap plastics and waste paper, was 528.74 billion yuan, down 17.8 percent year on year, according to the report.

"Recycling of renewable resources is a semi-public welfare industry, after the decline of waste prices, profits will be less", said Cao Yang, vice minister of the member department of the China Renewable Resources Recycling Association, "do not rule out the situation of some enterprises operating at a loss."

Low raw material prices, overcapacity is behind the reason

The waste market is largely affected by the trend of raw material prices.

Take plastics, for example, of which oil is the main raw material. Since the second half of 2014, the international oil price has fallen from $100 per barrel to hover around $40 per barrel. "The price of raw plastics has fallen with the international oil price, and the price of waste plastics will also be suppressed because of the need to maintain a certain price gap," said Shi Lei, a plastics analyst at Longzhong Information.

He said that after the price of raw plastics fell, the demand for waste plastics also decreased. For example, plastic film is made of raw plastic and waste plastic ratio processing, and now the proportion of waste plastic is greatly reduced, or even not used.

Price chart of scrap steel in key markets in East China. Photo source: Zhuochuang information

Overcapacity also has a certain impact on the scrap market. From the point of view of scrap prices, Zhuochuang information data show that the price of scrap in key markets in East China dropped from a high of about 3,000 yuan per ton in early 2013 to 1,050 yuan per ton in early 2016.

"Scrap steel prices follow steel price fluctuations", Zhuo Chuang information analyst Cui Hong said, "steel prices fell because steel projects put into production too much in previous years, resulting in excess capacity. At the same time, the demand for steel in real estate and other industries has declined, and steel inventories have surged, leading to a continuous decline in steel prices. In order to maintain profits, steel mills have to continue to reduce the price of scrap steel raw materials."

State policy subsidies to be strengthened

Wang Zhao said that in the waste household appliances, can not be used as second-hand sales of water heaters, hoods, especially low prices, air conditioners, refrigerators are relatively better.

"This is because the government has policy subsidies for the recycling of TV sets, refrigerators, washing machines, air conditioners and computers, that is," four machines and one brain ", and there are special dismantling equipment ", Cao Yang explained.

According to the "Management Measures for the Collection and Use of Waste Electrical and Electronic Products Disposal Fund" issued in 2012, "four machines and one brain" became the first products to be included in the fund's subsidies. The "Waste Electrical and electronic products disposal Catalog (2014 edition)" released in 2015 expanded the category from 5 to 14 categories, and the range hood, electric water heater and mobile phone were included in .

"However, for the new nine categories of products, the government has not yet issued detailed rules for subsidies", Cao Yang said, "enterprises are generally reluctant to disassemble."

Data picture. Photo: Visual China

Due to the reluctance of waste recyclers to collect, some low-value waste that was originally recyclable enters the garbage recycling process in large quantities, putting pressure on incineration and landfills, she said. "In Beijing, for example, the surrounding landfills have been overwhelmed", she said. Cao said that the "two-network integration" of waste separation and renewable resource utilization, which is currently being implemented, will work to solve the above problems, and she suggested that the government increase policy subsidies.

The issue of renewable resources has aroused the attention of the government. Recently, the National Development and Reform Commission on the "circular development leading Plan" (draft) to solicit public comments, proposed to strengthen the record management of renewable resources recycling enterprises, improve waste electrical and electronic products recycling fund. (Some people in the article are pseudonyms)(end)