www.foresightgroup.eu
One of the more unlikely sectors to be fuelling the economic recovery is the rubbish recycling industry, which has seen prices doubling since late last year – outperforming many traditional commodities.
Waste paper and plastics prices have risen dramatically since crashing last year. By November of 2008, prices were as low as £19 per tonne, but by this month, cardboard prices rose to £59 per tonne, above the average of £53 per tonne for the 2004-2008 period.
Rising at a rate nearly matching paper, PET plastic, which is used for drinks bottles, has seen prices more than double - from November’s £75 per tonne to £195 per tonne recently - and well above the 2004-2008 average price of £156 per tonne.
By way of comparison, the price of crude oil has only increased by 16 per cent and the price of gold by 14 per cent. The FTSE 100 showed an increase of less than two per cent in the last six months. With the government’s landfill tax that favours recycling, it is not surprising that Nigel Aitchison of venture capitalist group Foresight, considers waste management as a “timely place” for investment.
Currently, the UK recycling sector is valued at £12 billion, and is expected to expand to between £20 billion and £30 billion by 2025, according to the Waste and Resources Action Programme.
For more information on this article please visit www.ft.com.
www.foresightgroup.eu
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