Recycling cardboard after the holidays? Economists say costs for the material on the rise | WTVC - WTVC
Recycling cardboard after the holidays? Economists say costs for the material on the rise | WTVC
CHATTANOOGA, Tenn. — Recycling centers across Chattanooga have been seeing long lines of cars following Christmas.
Workers say that people are recycling cardboard the most this season.
While this is typical this time of year, it’s the price of that cardboard that is getting the attention of economists.
The costs of cardboard have made a significant increase this year and experts say this may be an indicator of a major shift in post-pandemic market dynamics.
According to SoFi, it’s the first time cardboard prices have risen since the start of the Federal Reserve’s latest cycle of interest rate hikes.
The price of linerboard, according to SoFi, which is usually used for cardboard boxes, has risen by as much as $70 to $75 per ton.
Prices for fluted medium cardboard—which are the wavy liners you can see in packaging—have increased from$100 to $110 per ton.
According to SoFi, an increase in cardboard prices are an indicator to the packaging industry that consumer demand is increasing.
Cardboard producers say the increase in prices makes sense because of inflation, however the increases are coming at an unusual time.
SoFi says historically, rising cardboard prices have led to economic growth.
Popular cardboard producers like International Paper, WestRock, and Packaging Corporation of America are expected to raise prices in 2024.
Related Knowledge Center: Climate economics
Climate change is now a driver of the world’s economy. The impact is profound:
- Catastrophic weather events — hurricanes, floods, droughts, high temperatures — are more frequent and more extreme. The cost can be measured in both the initial damage caused and the longer-term impact on the economy.
- Vulnerable communities are increasing climate-related investments, hardening infrastructure and taking other protective measures.
- Investment in carbon capture and storage technologies is increasingly rapidly.
- Governments are making investments and crafting regulations to reduce emissions of carbon dioxide and other greenhouse gases.
On top of all of this is the cost of uncertainty. As the Fourth National Climate Assessment, released in 2018 by the U.S. Global Change Research Program, says, “The assumption that current and future climate conditions will resemble the recent past is no longer valid.”