Attached is your PO for deliveries of recyclables during May2023.

The value of recyclables isup slightly this month.The market is volatile this month with pricing of different grades changing in all directions.

In the Pacific Northwest (PNW), demand from domestic paper mills is down slightly. PCA in Wallula just announced an indefinite shutdown and stopped taking OCC.  Also, WestRock in Tacoma is taking a planned maintenance shutdown.  Reduced demand from these two events would typically drive down OCC value.  But, consumer generation remains low and offsets this reduced demand.  On average, OCC pricing is relatively flat with some mills moving slightly up, some slightly down, and some not changing.

One good highlight this month is that mixed paper valueimproved marginally.  This was drivenprimarily by increased demand in the export market.Foreign mills are changing their recipes to replace some OCC and with more mixed paper.  They are doing this for two reasons:  (1) domestic OCC consumption has reduced the overall availability of OCC to foreign markets and (2) mixed paper costs less than OCC.

Plastics values dropped this month.  While a few HDPE grades remained relatively flat, all other plastic grades dropped.  Again, this month, the consumer demand for plastic bottles is lower than typical.  New home building and other construction activitiesare also suppressed, creating less needs for recycled plastics.

Metals values also dropped this month, both UBC and tin.  The demand for these metals is lower than typical as consumers have less discretionary money and are reducing their spending.  Continued economic uncertainty and rising interest rates have cut into people’s available funds.  Normally, as temperatures rise heading into the Summer, consumers buy more beverages in aluminum cans and plastic bottles.  But, this year, the industry has not seen the customaryseasonal demand increase.  This has negatively affected both UBC and PET prices.

These are trying economic times, creating uncertainty in the recyclables market.  We are staying on top of trends to deliver you the highest possible priceand to provide you with the best 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.

Stay Safe!  Enjoy this Holiday season.

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