Attached is your PO for deliveries of recyclables during February 2024.
The value of recyclablesis slightly down this month.The primary reason for thischange is the fallingmixed paper value.
In the Pacific Northwest (PNW), export prices dropped while domestic prices did not change. Almost all mixed paper is exported. With Chinese New Year reducing demand for SE Asian mills, export prices decreased, driving down the entire recyclables market. Overall consumer generation remained low and kept the lower export paper demand from more severely impacting prices. Since most OCC is sold domestically, OCC value was flat this month. The Middle East situation in the Suez Canal continues to affect the cost of logistics. All shipping lines announced another rate increase this month, further hurting the value of exported paper.
For plastics, PET prices climbed. Other plastic grades remained flat. Some grades like polypropylene (PP#5) remain difficult to find outlets. For many months now, the price of virgin plastic resin has dropped. These low prices have manufacturers using more virgin resin compared to recycled plastics. The lower demand for recycled plastics has meant no significant increase in recycled plastics for almost one year. But this month, the overall effect of plastic grades helped recyclables.
For metals, UBCpricesimproved again this month. European bans on Russian aluminum purchases continue to increase demand for U.S. aluminum. Indications are that UBC value will remain high for the near future. Tin prices decreased a bit.
Looking forward, we expect generation to remain low. Export paper demand should recover. Domestic mills are projecting strong demand in upcoming months. These factors should improve recyclables value in coming months.
In these trying economic times, wecontinue to stay on top of trends to deliver you the highest possible price and to provide you with the best service. It is our pleasure to work with you to recycle material and to fulfill Pioneer’s purpose, “Helping People Succeed in a Better Environment.” We appreciate you and thank you for your business.
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