Attached is your PO for deliveries of recyclables during October 2021.
The value of recyclables dropped this month—every paper grade value fell. Plastics were down and metals were flat.
After one year of rising recycled paper prices, we see pricing dipping this month. Although the reduction was not drastic, the price decrease affected every grade in the Pacific Northwest (PNW). There are several reasons for this:
- Port delays and logistical struggles worsened this month. In Long Beach, as many as 70 vessels were anchored or floating offshore, waiting to be unloaded. Similarly, over 30 vessels were waiting to be unloaded in the Puget Sound region.
- Then inventories at PNW mills are good. While these inventories were low for several months, the challenging export markets have allowed domestic mills to catch up with their demands.
- Domestic trucking shortages continue to hamper the region. These shortages and increased transportation costs are hurting an otherwise strong market demand for recycled paper.
- We have yet to see higher demands from this season’s Holiday surge.
While we believe the paper demand will remain strong in our region, pricing may continue to soften for a few months. We expect Holiday demands to keep these softening prices from plummeting too far.
The entire plastics market also softened this month. While HDPE Natural remained stable, every other plastic grade saw lower pricing. As with paper, we do NOT expect pricing to plummet, but it will probably continue to decline for the near future. Recycled metals were relatively flat this month.
As written last month, port delays, rising transportation costs, and trucking availability will continue to hinder the recyclable markets well into 2022. Pioneer constantly strives to find the best possible markets for the material you deliver to our facilities. We thank you for trusting us with your product and time. We strive to provide quick turnaround times to respect the valuable time of your drivers. Let us know how we can better serve you.
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.