Cost of Electronics Recycling: Why It Fluctuates

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The Cost of Electronics Recycling: Why It Changes?

 

 

Why the cost of electronics recycling fluctuates

 

Some of you out there, may or may not have noticed that the cost of electronics recycling has fluctuated over the past couple of decades. Whereas most goods and services tend to steadily increase or decrease, the costs of electronics recycling is more like what we see happening to gas prices ( no where near as eradic of course). Although the reasons for these fluctuations is far from a simple one, it boils down to one simple relationship. Supply & Demand. 

the costs of electronics recycling fluctuates because of basic economics. Supply and demand

Supply and Demand of what you ask? That, is a very long list of precious metals like gold and copper, recyclable commodities like plastic, and reusable parts and components.  Fundamental supply and demand tells us that when demand for these commodities increases, their price increases. Going on with that concept, when demand for these commodities decreases, their price decreases. 

 

The 2008 housing market crash. Chinese Yuan hitting record highs or lows. Gas prices dropping by over 50%.  These major world events, along with thousands (if not millions) of other things going on around the world, affect the supply and demand of these commodities.

 

 Why Should That Effect The Cost of Recycling?

Part of how recycling facilities cover the cost of properly processing ewaste, is through the revenue generated from recovered precious metals and reusable commodities. When commodity values decrease, the recycler bears a larger burden when it comes to labor costs. When values increase, they are able to pass savings on to their clients, through reductions in service costs and revenue sharing programs. 

 

Please keep  in mind that this is a simple part of the much more complex puzzle of why the cost of electronics recycling changes. If you are interested in more information related to the ewaste industry, follow our blog, or better yet get in touch. 

 

 

 

 

 

 

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