RECYCLING levels in the Westcountry are among the best in the country – but a drop in global market prices has led to stockpiling of recyclables in the region.

South Hams and Teignbridge district councils are in the top 10 authorities achieving the highest recycling rates and sending the least to landfill in England.

According to Defra figures, residents in the South Hams, the second best district in the country, recycled 57.07 per cent of their waste. By saving 19,000 tonnes from landfill, they sent less waste per household to landfill than any other district in the country.

Coun Terry Hewitt, South Hams executive member for the environment, said: "This result shows that in the South Hams we are now taking a greater responsibility for our waste than ever before, not least through the recycling scheme. The residents of the South Hams should take all the credit for this fantastic effort."

Meanwhile, residents in Teignbridge recycled 55.58 per cent of their waste, the fourth best in England and more than 20 per cent higher than the national average of 34.5 per cent.

But at a time when levels of recyclable waste are increasing, councils are struggling to sell on the waste owing to a dramatic drop in prices of steel, aluminium, cardboard and plastics.

Mike Trim, head of cleansing services at Exeter City Council, said they had had to start stockpiling steel, since its value dropped "almost overnight" three weeks ago from £150 per tonne to zero.

Councils may have to start giving recyclables away free if the market does not improve, relying only on the £45 recycling credit per tonne contributed by the Government.

"We are still encouraging people to recycle. But the problem is that it is a world market – even China is closing its doors. Sadly, it is totally out of our hands," Mr Trim said.

He said cardboard has dropped from £60 per tonne to zero, aluminium has dropped from £900 to £400 and HDPE plastic (used to make milk containers) is down from £350 to £150.

Only high-quality paper and glass are holding their value.

North Devon Council is stockpiling steel and plastic until the market improves and Teignbridge is storing its aluminium. Plymouth City Council has started searching for alternative buyers for its waste, while Torbay will be "continue to monitor the situation".

While Exeter is still within budget, due to a successful first six months of this year, Mr Trim said the fall in prices could lead to a shortfall in councils which had "over-forecast" their recycling income.

A spokesman for the Local Government Association has confirmed this is a national problem, with councils struggling to sell their waste or only coping due to longer contracts with third parties.

Cornwall and Devon county councils and South Hams, West Devon, Mid Devon and Torridge district councils are selling their waste through long-term contracts. Most would not reveal the length of their contract, but Torridge's agreement comes to an end in March, and it is not clear whether the markets will have recovered by that time.

However, the amount of rubbish produced by households in the Westcountry is continuing to fall. North Cornwall district and West Devon borough councils were ranked first and fifth in the country for showing the largest percentage decrease. Household waste in Cornwall amounted to 424.91kg per person in 2007-08, a 13.64 per cent drop.