Attached is your PO for deliveries of recyclables during January 2024.
The value of recyclablessignificantly improved this month.The primary reasons for this increased value were paper, UBC, and some plastics.
In the Pacific Northwest (PNW), both OCC and mixed paper prices rallied with mixed paper being slightly stronger. The main drivers for price increases are low consumer generation, higher demand, and logistic disruptions in the Suez Canal. Low consumer generation is surpassed by box and paper demand. Typically, post-Holiday generation is high for at least the first three weeks of January. However, we have not seen a surge on par with previous years. And, recycled box and paper demand has improved.
The Middle East situation in the Suez Canal calls for its own discussion. Most of the export recycled paper in the Eastern U.S. travels to India and Southeast Asia through the Suez Canal. With the war in the Middle East, all shipping linesdecided not to send commercial ships into this war zone. Their alternative is to send vessels around the southern tip of Africa, which costs more and presents treacherously high seas. To avoid these costs and dangers, Southeast Asia markets have submitted more orders from the U.S. West Coast. This increased demand drove higher export prices. Most domestic mills raised their prices to compete with the export market.
For plastics, both HDPE Color and PET prices climbed. Other plastic grades remained flat. Some grades like polypropylene (PP#5) remain difficult to find outlets. But, the overall effect of plastic grades helped recyclables.
For metals, UBCpricesimproved for the first time in several months. United Kingdom and other European bans on Russian aluminum purchases have increased demand for U.S. aluminum. These efforts drove up UBC prices. Tin prices remained flat.
Looking forward, we expect paper demand to drop next month and for prices to flatten. But, we do not expect a significant drop in recyclables value.
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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