Attached is your PO for deliveries of recyclables during February2023.

The value of recyclables is upconsiderablythis month.Overall, paper,plastics, and metals improved.

In the Pacific Northwest (PNW), demand from domestic paper mills is significantly up this month as many mills are securing box orders.  Similarly, export paper mill demand is also substantially up.  Additionally, inbound supply following post-Holiday surge is down.These factors are creating a higher demand for paper, especially OCC, than consumers are generating.

The export OCC market is the single largest driver of recyclables value.  With China eliminating its zero-COVID policy and opening manufacturing and paper mills, the entire Southeast Asian market is driving up prices.  Working against these higher prices, India has pulled back on order, primarily because prices were rising beyond what they desired to pay.  While India buys most of its OCC from the East Coast of North America, there is a trickle effect that has temporarily slowed rising OCC prices in the PNW.  Still, we saw a nice increase in overall export prices.

With PNW domestic mills also wanting more OCC, they chose to match the export increase to secure supply from those MRFs who also have export options.  As you travel toward the middle of the U.S., prices were flat or only increased slightly.  With OCC value increasing, other paper prices also rose, but not as much.

Some plastics grades were flat.  But, HDPE Natural and PET value improved, which helped the overall plastics market.  Consumer generation of most plastics is suppressed and should create a continued upward pressure on prices.

As for metals, tin prices only rose slightly.  UBC, however, saw a nice increase in value due totight supply-demand balance and low inventory level of aluminum across the globe.China is a leading producer of aluminum.  Despite stopping its zero-COVID policy, in February, a COVID lockdown in Baise, China halted most of its aluminum production.  Also, the Russia-Ukraine War led many nations to stop buying aluminum from Russia.  So, UBC became a higher value source for the aluminum industry.

In recent letters, we have predicted an improvement in the recyclables market.  It came this month.  This indicates that the U.S. economy may not dive into a deep depression like some economists predict.  Looking into the next few months, we predict that the market value for recyclables may flatten out.  But, we do not imagine prices will decrease significantly in the near future.

During these unpredictable times, we will always strive to obtain the best pricing available and to provide you with 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.

Stay Safe!  Enjoy this Holiday season.

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