Attached is your PO for deliveries of ResMix to Pioneer during the month of May 2019.

The market for recyclables has moved modestly lower in May.  The downward price pressure occurred in both OCC and HDPE.  The other grades we sort from ResMix were mostly stable in price.

The root cause of the downward pressure for HDPE has been a consistent overhang in the marketplace of a large amount of virgin off-spec HDPE resin.  The sellers of this off-spec material have been aggressive in lowering its price to eliminate their inventory which has reduced the price of recycled HDPE by an equal amount.  Unfortunately, we have no estimate of when this material will be absorbed in the marketplace. Until it is, we can expect soft pricing for this grade.

For OCC we do know that the domestic mills are full of raw inventory and are dealing with 5-10% lower demand for the rolls they manufacture for reasons that are unclear at this point.  Our best guessfor the cause of this downturn in demand is the decline of purchasing from Amazon which is moving to shipping many of their goods in plastic bags instead of cardboard boxes.  Unfortunately, thisexplanation is unsatisfying as it cannot, in and of itself, fully explain the lower roll demand.  We will keep you posted as we learn more.

Looking to the nearfuture, with each passing month of Spring with lower or , at best, stable pricing, the chances of experiencing the normal improvement in pricingassociated with the Harvest and Landscaping seasons have declined.  

In contrast to the immediate future, will still do remain very optimistic for the mid to long term pricing outlook as there are just so many announced expansion projects on the books, (23 total by my last count) it would be foolish to conclude otherwise. 

As always, please know that Pioneer is working harder than ever each day to find both movement and the best pricing available.  Additionally, we are always committed to providing the best service possible.  We appreciate your business.

President, Pioneer Recycling Services