Although most people refuse to admit it, it's widely recognized (by economists, not by politicians) that for most items, recycling costs more than producing them from raw materials. Now that some raw materials got a little bit more expensive, there are more items where recycling can be profitable, especially if you ignore the hidden costs.
Tim Worstall has an article in the Times, The Hidden Cost of Recycling.
And there's always the NY Times classic article, Recyling is Garbage.
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