Attached is your PO for deliveries of recyclables during July 2021.
Again, the overall market for recyclables improved considerably this month. The main reasons for these increases are booming paper and high density polyethylene (HDPE) markets.
Both domestic and export recycled paper had strong pricing. The demand for domestic paper in the Pacific Northwest is at an all-time high. Every domestic mill is running all out, and many mills began this month with lower recycled fiber inventories.Consumer ecommerce purchasing continues to drive OCC demand. That fact, coupled with the seasonal drop of inbound recycled paper, is creating a significant imbalance between inbound supply and outbound demand. This supply-demand imbalance is pushing up prices each month.
The export paper demand is also elevated. The combined strength in both the domestic and export markets lend to a promising forecast for recycled paper.
The backlog at the port persists. Bookings to export customers are still a struggle. We expect this to continue well into this Fall. Fortunately, domestic mills are consuming all the OCC we can produce. However, I’m sure you are experiencing the soaring fuel prices in your daily operations. Likewise, trucking costs from our facilities to our sales customers are negatively impacted by rising transportation costs. These higher costs slightly reduce the price we can get for some product.
While almost all grades of plastics increased a little this month, HDPE natural and color are at record high prices. Demand for recycled plastics and virgin resin remain strong. And following early year shutdown of Texas plants producing virgin resin, they have not been able to recover and keep up with the required production. All other plastics grades continued their modest increases.
While we cannot predict the future, all indications are that the upward pressure on recycled paper will continue throughout the summer, creating a strong recyclables market. As always, Pioneer will work diligently to get the best pricing available. 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.