The market for most recyclables has held steady (plastics & metals) or moved modestly upward. (paper)  The net impact has been an improvement in ResMix pricing for July.

We believe the improving paper pricing is related to the impact of both seasonal demand and product substitution both of which we discussed last month.  To review, mills are using more wastepaper to meet demand for harvest and Christmas packaging and, simultaneously, some foreign mills are happy to substitute North American fiber for their own domestic supply due to the much improved fiber strength present with the former.  Combined, these increases in demand have been enough to nudge wastepaper pricing higher.  We’ll take it.

As we look ahead, we are encouraged by even a modest improvement in pricing, especially coming so early in the demand rebuilding process.  The pricing improvement is a function of the fiber strength of North American Kraft paper, the robust and growing world economy and the flexibility and speed to adjust to changing conditions that is inherent in a global free market like we have for recyclable commodities.  As such, we remain confident (absent a decline in macro global economic conditions) that demand will continue to grow for recyclable materials and pricing with it.

Regardless of market conditions, rest assured that Pioneer Recycling is always working hard to secure the very best pricing the market has to offer.  We appreciate your business.