Attached is your PO for deliveries of recyclables during October2023.

The value of recyclables isagain up this month.  All paper grades are up, and most plastic grades were flat.

In the Pacific Northwest (PNW), domestic paper mill demand is relatively flat.  While a few mills are taking short, planned maintenance downtime, the remaining mills are taking up the slack with higher production levels.  Along with this stable demand, consumer generation is down slightly, contributing to a small shortage in recycled paper.  Again, this month, several Southeast Asian countries increased consumption for both OCC and mixed paper.  These rising domestic and export demands boosted all paper prices, impacting the overall recyclables value.

Last month, we thought plastic grades had hit bottom with a small rebound.  That trend holds true for this month with most grades holding flat.  Demand for HDPE natural and HDPE color remained steady.  PET is a slightly different story.  Last month, PET movement improved as built-up inventory was shipped to export markets; domestic demand was lacking.  This month, domestic demand increased.  Although these domestic prices remained flat, MRFs were able to ship more PET domestically, avoiding the lower value export markets.  The net effect was an overall improvement in PET value.

For metals, although tin value dropped, aluminum saw marginal improvements.  Russian aluminum inventory is about 10% lower than the previous month.  And, Novelis Europe, a unit of the world’s largest producer of rolled aluminum, says it will again exclude Russian aluminum from its 2024 metal supply.  Removing Russia from much of the global aluminum market contributed to UBC price increases and should create demand in coming months.

Looking forward, the largest Chinese paper company, Nine Dragons, reported an operating loss from June 2022 to June 2023.  We have seen a recent decrease in their demand for paper.  Most analysts believe this is an indication that the thriving export paper market will soon top out and prices will not improve as in the last two months.  Domestically, PCA Wallula is expected to start rehiring people for their Wallula mill which closed earlier this year.  Perhaps, they will re-open by the end of the year.  With other domestic mills not announcing planned downtime, we expect the domestic demand to counterbalance the shrinking export markets.

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.

Stay Safe!

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