Attached is your PO for deliveries of recyclables during April 2022.
The value of recyclables did not change much this month with fiber pricing dropping slightly and with plastics and metals pricing rising slightly.
As stated last month, we generally expect the market to improve during this time of the year with inbound supply decreasing and demand for recyclables remaining strong. However, several factors listed below decreased the demand for all paper grades. As we know, decrease in demand leads to lower prices.
- At least one major Pacific Northwest mill took a week of downtime.
- In Q1, domestic mills built up stock. Most mills report higher than normal inventory levels.
- China cut back on production, which reduced the general demand for recycled paper in Southeast Asia.
- Two new countries (Malaysia and Thailand) announced some form of inspection process for inbound recycled paper. Although the details of the inspection processes are not fully known, some mills in those countries either reduced buying or are waiting on more inspection details before placing new orders.
Thankfully, we have not mentioned COVID-19 impacts in recent months as U.S. cased drop and most states remove restrictions. However, dramatic lockdowns for COVID-19 were reported in Shanghai. Residents in some areas were told to stay in their homes by local authorities. This further softened packaging demand in China.
There were slight increases in plastics and metals pricing which offset the drop in paper prices. The demand for plastics remained strong, with PET and HDPE leading the way. European energy prices remain high, but manufacturing production, including aluminum, is coming back online. These high energy prices sustained the North American demand for aluminum cans (UBC). But, we did not see the sharp price increases as in recent months.
During these challenging times, we will always strive to obtain the best pricing available and to provide you the best possible service. It is our pleasure to work with you to recycle material and to protect our environment. We appreciate you and thank you for your business.