Why a Market-Based Tire Recycling System Shouldn’t Be Scrapped

March 12, 2019

March 12, 2019


This guest blog is courtesy of Paul Arellano.


Tire recycling is a mixed industry. There are government regulations that determine how to legally dispose of used tires, yet the system is still largely market-based. There are some who favor greater government control of the tire recycling industry. While it’s true that government regulation is a necessity, a market-based system shouldn’t be scrapped entirely.


Pros and Cons of a Market-Based System


Although a market-based system has its benefits, there is no doubt this industry would look very different without government involvement. Many businesses and individuals would probably choose not to recycle, but rather dispose of their tires in a landfill if there were no penalties for doing so. There might be less of a demand for rubber in the civil engineering industry if the government did not award tire recycling grants.


The current system has seen great success, however, and greater government regulation may not be necessary.


A 90% Success Rate


In any recycling effort, a 90% success rate is cause for celebration. The recycling programs in the state of Maine and the City of San Francisco serve as two shining examples. Maine’s 90% success rate for beverage reclamation is lauded as an industry benchmark. In San Francisco, the city’s 80% diversion rate frequently garners praise.


The recycling rate for the scrap tire industry is particularly impressive when one considers that anything metal typically enjoys a more mature recycling market than that of non-metallic recyclables.


It’s worth noting that U.S. laws have largely taken a hands-off approach to requiring vehicle or home appliance manufacturers to finance the recycling costs of their products. This is because the recycling markets within these industries continue to thrive without product stewardship laws, just as the recycling markets for scrap tires do.


Pros and Cons of a Government-Controlled System


Government regulation increases the demand for tire recycling services and tire-derived products. It incentivizes proper disposal of tires and protects the environment. A system entirely controlled by the government, however, would ultimately be detrimental.


Well-intentioned lawmakers often meddle with a well-functioning system in an effort to make it work even more efficiently. The effect can be deleterious, to say the least. Take, for example, Connecticut Senate Bill 869, which would explore the benefits of establishing licenses or permits for tire haulers, along with developing a new stewardship program. This program would force tire producers to increase prices to cover the end-of-life costs associated with the disposal of their products.


In its support of SB 869, the Connecticut Recyclers Coalition (CRC) points out that it has supported other producer responsibility efforts in the areas of e-waste, paint, and mattresses, and each of those programs have resulted in significant savings for taxpayers and municipalities.


While it is difficult to argue with the successes the CRC identifies regarding paint, electronic waste, and mattresses, scrap tires shouldn’t necessarily be brought under the same umbrella.


The TIA Weighs In


In its written testimony to the Connecticut Senate Environment Committee, the Tire Industry Association (TIA) writes: “Based on the knowledge we have from within the industry, the shared responsibility approach to scrap tire management has been very successful in the United States.”


Continuing this line of discussion, the TIA elaborates:

“The free-market based shared responsibility approach has established a successful, stable scrap tire management infrastructure, regulated by state laws governing tire hauling, storage, processing and end-use markets to ensure the system is properly maintained and operated.”


A Self-Governing and Self-Sustaining Industry


The tire recycling industry has taken great care to clean up its act and its image. Technology has assisted this effort tremendously.



This is not to say, of course, that the scrap tire industry hasn’t been helped by state and local laws regulating tire hauling, storage and processing. It has. The difference is that these regulatory efforts have worked in concert with the industry. Additional legislation like Connecticut SB 869, by contrast, would disrupt the industry by adding unnecessary layers of bureaucracy, increasing costs without adding appreciable benefits, and creating barriers to a system already known for innovation and efficiency.


Paul Arellano is the Sales & Marketing Manager at Lakin Tire, a tire recycling company that was founded in 1918—its motto—giving new life to old tires through creative thinking, innovative recycling processes and optimized scrap-tire management.


NERC welcomes Guest Blog submissions. To inquire about submitting articles contact Lynn Rubinstein. Disclaimer: Guest blogs represent the opinion of the writers and may not reflect the policy or position of the Northeast Recycling Council, Inc.

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Planet Aid

By Sophie Leone • January 20, 2026
Planet Aid is a nonprofit established in 1997 to divert clothes and shoes from the U.S. waste stream and fundraise for community development programs around the world. With thousands of donation bins and centers across the Northeast, Mid-Atlantic and Midwest, Planet Aid’s mission is to inspire positive change by making it easy for donors, partners and communities to take small steps that add up to a big impact. Over three decades, Planet Aid has collected more than two billion pounds of clothes and shoes for reuse. These donations have helped Planet Aid raise more than $100 million to fund community-led projects in the U.S., Africa, Asia, and Latin America. With headquarters just outside Baltimore, MD, Planet Aid serves thousands of communities in 14 states, including New York, New Jersey, Maine, Massachusetts, Connecticut and more. For those without a yellow collection bin or white donation center nearby, they've developed a donation through mail option. By partnering with Give Back Box, you can pack up and mail your donation items directly to their thrift store. This inclusive approach allows them to reach more communities, diverting even more waste that may have gone to a landfill or incinerator. “Planet Aid is excited to join NERC, an organization that shares our goals of minimizing waste, conserving natural resources, and advancing a sustainable economy,” said Uli Stosch, Planet Aid’s Chief Officer of Strategic Development. “We looking forward to collaborating with NERC’s members to help U.S. communities in the Northeast minimize textile waste while maximizing reuse to limit the negative impacts of fast fashion.” NERC is excited to welcome Planet Aid into our growing group of nonprofit members. We look forward to helping share the excellent work they are doing in the NE and around the world. For more information on Planet Aid visit.

Collaborative Solid Waste Strategies

By Sophie Leone • January 20, 2026
Collaborative Solid Waste Strategies (CSWS) is a New Hampshire based nonprofit committed to improving the waste management landscape in NH and other states. Their work is centered around education, advocacy, and innovation. Educating the public is an essential part of effective waste management, and CSWS has an extensive list of resources on municipal solid waste management, including how to manage materials such as glass, metal, and food waste as well as strategies on how to manage landfills, incineration and more. CSWS is a small but mighty team led by Executive Director Carol Foss. Carol sees Collaborative Solid Waste Strategies as an opportunity to help shape the next stage of evolution for solid waste management in New Hampshire. Her dedicated approach allows CSWS to lead as a strong example in the waste management advocacy field. “CSWS strives to be a catalyst for pragmatic and comprehensive approaches to sustainable solid waste management in New Hampshire.” NERC is thrilled to welcome CSWS as members. As a fellow nonprofit, we understand how important their voice and presence are within our industry, and we look forward to collaborating with them and working to achieve our shared goals. For more information on Collaborative Solid Waste Strategies visit.

2025 Recycling Markets Took a Beating in a Weak Retail Year

By Chaz Miller • January 5, 2026
2025 was not a good year for recycling markets. Prices went down for everything in your bin. The only real difference is how badly each material got hit and why. Let’s start with paper, the most important recyclable in terms of weight and volume. Old Corrugated Container (OCC, boxes) prices started rising in the spring of 2023, peaking for several months in the summer of 2024. A long slide then began and lasted for almost all of 2025. Prices for Residential Mixed Paper (RMP) did the same. Nationally, OCC is now at $46.88 per ton and RMP is $20.31 a ton. OCC went down by a third while RMP went down by half. The “good” news is that these prices have been lower in the last five years. RMP, after all, had a negative value early in 2020 and then for a few months in late 2022. (All prices in this article are national prices from RecyclingMarkets.net as of December 31). The 2023 rise and then fall of recycled paper prices was the result of increased capacity to use OCC and RMP as raw materials along with declining overall demand for boxes. New recycled content paper capacity started coming online in 2017, peaking in 2023 when five new mills opened. Those new mills, eager to build up supply lines, caused prices to go up. Existing capacity had no choice but to also pay more. At the same time, demand for new boxes was going down. In fact, box demand has been going down for four years. Something had to give. In 2025, nine existing paper mills announced they would be closing. Old, more expensive, and less efficient to operate, they couldn’t compete with the new mills. All four plastic resins lost value but the impact varied by resin. Natural HDPE, (mostly milk jugs) lost a third of its value. Polypropylene (mostly dairy products) went down by 40 percent. Color HDPE (consumer products such as detergent and shampoo) went down by 48 percent and PET beverage bottles went down by two thirds. Natural HDPE is 46.81 cents a pound. Even at the lower price, this resin remains in a good price range. PET and polypropylene are both 5.38 cents a pound. Recycled PET rose steadily from the summer of 2023 to the summer of 2024. Then it declined equally steadily until it reached a record low of 4.19 cents in early October of this year. Cheap recycled resin imports, too much domestic virgin PET resin and lower summer beverage demand gave prices nowhere to go but down. Recycled PET resin imports are now subject to tariffs, which may be responsible for its recent increase. Nonetheless, its price remains in the doldrums. Polypropylene generally has a low price except when new capacity is coming online and building up capacity. For 46 of the 72 months since January 2020, its price has been less than a dime a pound. For 17 months, it’s been at its current not very good price or less. Color HDPE is 2.81 cents a pound. This resin depends on construction markets because the color can’t be taken out of the resin. New housing starts have been in decline for four years. It also set a record low price in 2025. Aluminum and steel cans are recycling market’s happy place. Their prices went down by 9.3 and 8.7 percent. Aluminum cans have a national average price of 78.75 cents while steel cans go for $158.75 a ton. Over the last few years, the aluminum industry smartly expanded into non-alcoholic beverages such as water and fruit juices. Those new uses keep demand up. After sliding last year, steel can prices stabilized. As for glass, it’s price rarely changes. Clear glass bottles go for $38.56 a ton, brown for $27.19 and green for $10.31. Those prices all rose slightly in the spring of 2023. Mixed glass from single stream curbside collection has a “negative tipping fee” of $25.31 a ton. In other words, the MRF pays the end market to buy it. That price became slightly more negative this year. The glass industry has been in decline for some time, a victim of lighter weight aluminum cans and plastic bottles. In addition, Americans are drinking less alcohol. That’s the biggest user of glass bottles. Our beleaguered economy is hurting recycling markets. Recyclables are just raw materials looking for a buyer. Those buyers are purchasing managers making a bet on how much raw materials they will need for their companies’ products. This can be, say, aluminum cans, boxes to ship those empty cans to beverage companies or boxes to deliver filled cans to retail outlets. When buyers are optimistic, they buy more. In 2025, they were gloomy. Prices of all of these recyclables have been hurt by declining unit sales of consumer products and the resulting decline in box demand. We are in a “ K-shaped” economic recovery from the pandemic. This means the recovery’s impact varied by economic status. Wealthy households now account for half of consumer spending on goods and services. They spend more on “services” such as trips and entertainment than on goods. Lower income households, however, are squeezed between paying for necessities such as housing, health care, insurance and food before everything else. They are pinching their nickels and looking for bargains. Simply stated, due to the K-shaped recovery, sales are down and we need fewer packages and shipping boxes. So what will happen in 2026? The loss of so much older paper capacity is bringing demand and supply back into a better balance. Look for prices to rebound a bit. Plastic prices will remain soft barring a reversal of the K-shaped recovery. PET prices, have the most potential if beverage demand returns. Color HDPE, will remain in the doldrums until new housing construction increases. Natural HDPE will stay where it is or go up a bit. Polypropylene will probably stay where it is. As for glass, change isn’t likely. I realize that’s not optimistic. Given the projected rise in health, insurance and energy costs this year, Americans will still be pinching pennies. Box production will decline as unit sales fall. Our K-shaped economy needs to become a rising economic tide lifting all boats. Recyclables, afterall, are commodities subject to the economy’s ups and downs. When our economy truly rebounds, recycling markets will thrive again. Read on Waste360.