Attached is your PO for deliveries of recyclables during November2023.
The value of recyclables isdown this month. This is primarily due to a reduction in OCC value.
In the Pacific Northwest (PNW), domestic paper mill demand is relatively flat. Along with this stable demand, consumer generation remains suppressed. However, pricing for all Southeast Asian countries is down substantially this month. OCC pricing weakened more than mixed paper, but both prices are slipping every week. The falling export prices had a negative effect on the domestic market, causing a small decline in domestic prices.
More on paper, Nine Dragons, the largest Chinese paper company, took orders for recycled paper in late October, only to cancel those orders in following weeks. These cancelled orders created extra inventory for export markets. Additionally, India slashed its consumption. These two factors led to all other export mills reducing their prices.
Most plastic grades remained flat. But, there were small increases for PET and HDPE color. These improvements were not enough to offset the larger drops in paper and UBC prices. Overall, the use of recycled plastics has been down from last year. Despite commitments from consumer products companies to use more post-consumer recycled (PCR) plastics, those companies, on average, have decreased year over year consumption, keeping plastics pricing lower than expected.
For metals, aluminum prices fell. On average, tin prices were flat, improving slightly among some customers and decreasing in value among other customers. With OCC pricing seeing significant price reductions, plastics flat to slightly improved, and UBC down, the overall value of recyclables dropped this month.
Looking forward, the paper market seems unpredictable. Only a couple of months ago, most indications predicted higher paper demand and prices. Trends in late October and early November show the opposite happening, especially in the export market.
In these trying economic times, wecontinue to stay on top of trends to deliver you the highest possible price and to provide you with the best service. It is our pleasure to work with you to recycle material and to fulfill Pioneer’s purpose, “Helping People Succeed in a Better Environment.” We appreciate you and thank you for your business.
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