About 500 tonnes of plastic, metals and other materials caught light at Universal Recycling on Wharf Road in Kilnhurst on Monday.
South Yorkshire Fire Service said although the surface fire had been subdued, scrap metal and plastic alight underneath was causing more smoke.
A safety cordon remains in place.
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The fire started on Monday morning with thick black smoke billowing hundreds of metres in the air, visible for miles.
Police, fire and Rotherham Council have held a meeting to decide what to do next.
More than 30 fire fighters attended the blaze at its height, and about 20 were on site on Tuesday.
Local transport services were disrupted on Monday and people were evacuated from their homes, or advised to stay away.
Incident commander Claire Duke said a large grab from the recycling centre had been used to pull apart about a third of the plastic and metal bales, but the operation had to be scaled down after dark.
Work has begun again, which Ms Duke said could create more black smoke. She said a turntable ladder would be used to drench the burning material from above, once it had been pulled apart.
Residents have been asked to remain away, if possible.
A support centre has been set up at Kilnhurst Resource Centre on Victoria Street.
There is no blanket ban on people returning home, but houses nearest the recycling centre were evacuated on Monday night.
Ms Duke said earlier: "We hope to resume more aggressive fire-fighting this morning and make headway into the remaining pile.
The smoke is white because the surface fire has been put out.
Ms Duke said the smoke was likely to get worse before it got better.
An investigation into the cause of the fire will not begin until the fire is out.
The Environment Agency said it had checked local air, land and water quality and was satisfied the fire had been contained.
It also confirmed the fire service's waste water was not contaminating nearby waterways and rivers.
Fire crews remain at the scene of a blaze in a recycling centre that sent acrid black smoke billowing over homes near Rotherham.