Attached is your PO for deliveries of recyclables during May 2022.
The value of recyclables changed slightly this month with fiber prices flat, plastics pricings up slightly, and metals pricing down significantly.
All paper grades are flat this month with a balance between inbound supply from consumers and outbound demand from the paper mills. Diesel price is up and down, most recently up. Despite this volatility in diesel price, the domestic trucking rates did not change much. There remains a shortage of drivers and equipment for domestic loads and for loads going to the port. So, finding trucks for outbound shipments remains a big challenge. The lack of available vessels and containers for export shipments continues as there is no improvement in the global supply chain shortage.
The demand for recycled plastics continues to grow. This demand led to a small price increase across all plastic grades. Several plastic companies have just completed or are soon completing projects to increase their capacities. This is exciting as the increased capacity should create more demand and upward pressure on recycled plastics pricing.
Metal prices saw a large drop this month. As Europe adjusts to its energy crises, aluminum production is back up. Therefore, the demand among North American aluminum produces has dropped. Correspondingly, we saw a large decrease in UBC prices. Some large UBC consumers are full of material for May and not yet considering new orders for June. Tin production is also down in the Pacific Northwest, and recycled tin prices fell substantially this month. The overall metals market is soft, and we expect prices to continue to fall over the next few months.
Continued COVID-19 lockdowns in Shanghai and throughout China are reducing the overall paper demand. While these lockdowns did not cause a drop in paper prices in May, we expect these issues to decrease export demand and prices in the coming months.
During these challenging times, we will always strive to obtain the best pricing available and to provide you the best possible service. 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.