After looking at the federal PART Act and how close it came to shutting down catalytic converter recycling, Ed and Rich sat down with industry leaders to examine how state-level laws are already reshaping the industry — and in many cases, creating bigger problems than they solve. 

Ohio’s New Law Could Shut Down Businesses 

One of the most striking examples is in Ohio. A recent bill removes long-standing business-to-business exemptions. Under the new law: 

• Recordkeeping and reporting requirements now apply to B2B transactions. 

• Buyers can only purchase one catalytic converter per day, per business. 

That restriction makes normal operations impossible and threatens to shut down legitimate businesses overnight. 

This follows the path of states like Minnesota and Illinois, where laws were pushed through without industry input and created immediate compliance nightmares. 

Lessons From California and the Past 

This isn’t the first time overregulation has backfired. In the 1970s, California tightened secondhand dealer laws and required reporting on every individual item. Law enforcement was buried in paperwork within 90 days and asked the state to reinstate exemptions. 

Today, we’re seeing history repeat itself. In many states, law enforcement agencies lack the budget, manpower, and technology to actually process or act on the data recyclers are being forced to submit. 

The result? More red tape, but little enforcement. 

Compliance Costs Are Crushing Recyclers 

For recyclers, compliance isn’t just about paperwork — it’s about survival. One Midwest company reported hiring three full-time staff just to process supplier compliance requirements. On top of that, new restrictions are limiting their ability to transport material across state lines, raising questions about violations of interstate commerce laws. 

Some states now require recyclers to operate only from brick-and-mortar locations, shutting down mobile buyers and creating protectionist barriers. 

VIN Marking: A Persistent Flashpoint 

Despite falling converter theft rates (largely due to lower PGM prices, not new laws), many states continue to push VIN marking as the “solution.” 

But with 500+ million converters already in circulation without VIN numbers, recyclers are left wondering: 

• What happens to the existing above-ground stock? 

• Will there be a grandfather clause? 

• How can states manage massive databases full of errors, duplicate VINs, and unreviewed records? 

Even when VIN marking data is collected, there’s little to no infrastructure to properly verify or enforce it. 

The Market Reality: Lower Theft, Stable Prices 

While lawmakers credit stricter laws, the reality is simple: PGM prices have dropped. Lower converter values have shifted organized theft activity toward copper. 

At the same time, prices for platinum, palladium, and rhodium remain historically strong: 

• Platinum/Palladium expected in the $930–$950 range. 

• Rhodium holding near $5,000/oz. 

For recyclers, the message is clear — this is the new normal, and holding out for mega-spikes is risky. 

What Recyclers Need to Know 

• Overregulation is spreading state by state. Even small clauses can reshape your business overnight. 

• VIN marking is here to stay. Whether or not federal law passes, many states will require it. 

• Compliance costs are rising. From staffing to reporting, recyclers must prepare to handle more paperwork than ever. 

• Profitability depends on adapting. With prices holding steady at historically good levels, businesses that move material now are in a stronger position than those waiting for another spike. 

Stay Informed: Explore More Insights and Exclusive Content from noble6!

Thank you for joining us in exploring the latest insights from the precious metals industry. For more in-depth articles and exclusive interviews, visit the rest of our blog. Don’t forget to subscribe to our YouTube channel for the latest videos and updates. Stay informed and ahead in the industry by subscribing today!