[OKRA] Recycling Market update

Tue Oct 11 08:46:29 PDT 2022

[image: image.png]
The  Market Update speaker at OKRA's 2022 Annual Recycling Conference
forewarned us that the markets were headed in a downward trend.  Here is
the latest from Resource Recycling.

*_______________________________________________________________________________________________________________________________*

[image: image.png]
Autumn brings accelerated decline in fiber markets
<https://resource-recycling.com/recycling/2022/10/10/autumn-brings-accelerated-decline-in-fiber-markets/>
Published: October 10, 2022
Updated: October 10, 2022
by RecyclingMarkets.net Staff
<https://resource-recycling.com/recycling/2022/10/10/autumn-brings-accelerated-decline-in-fiber-markets/>

[image: Market graph icon]Recovered fiber prices have crumbled this month,
with OCC values cut in half and mixed paper dropping into negative
territory for the first time in over two years.

The national average price for corrugated containers (PS 11) has plummeted
from $78 per ton last month
<https://resource-recycling.com/recycling/2022/09/13/more-price-drops-for-recycled-paper-and-plastic/>
to
a current average of $40 per ton, compared to $169 per ton this time last
year.

OCC, one of the most important commodities in the curbside mix, has been
falling since July, when the price was $131 per ton. Since then, each month
has brought worse and worse news for MRFs. The price dropped 13%, 32% and
49% in August, September and October, respectively.

Some analysts see
<https://www.cnbc.com/video/2022/09/16/containerboard-market-serves-as-a-proxy-for-economic-health-says-jefferies-philip-ng.html>
cardboard
box demand, which affects the value of recovered fiber, as a rough gauge of
overall economic conditions. Prices for OCC also collapsed in the runup
<https://resource-recycling.com/recycling/2022/10/03/editors-analysis-are-bale-prices-foreshadowing-recession/>
to
the 2007-09 Great Recession.

Another important grade given its large percentage in the curbside mix, mixed
paper (PS 54), is feeling even worse pain and is now a cost for MRFs, not a
revenue source. Mixed paper has dropped from $18 per ton to negative $1 per
ton. This compares with $95 per ton this time last year. The last time
mixed paper had a negative value was in April 2020 – at that point, it had
been negative for over a year.

Again, as is the case with OCC, the mixed paper decline has been remarkably
swift. As recently as July, it was $69 per ton. Then the price dropped 36%,
59% and 106% in August, September and October, respectively.

Sorted residential papers (PS 56) are also down dramatically, from $82 to
$35 per ton. This compares with $116 per ton one year ago. Like OCC and
mixed paper, sorted residential papers have been on a steep decline since
July.

Sorted office papers (PS 37) remain steady, at $241 per ton, compared to an
average $165 one year ago.

UBCs have also dropped over the past month. The national average price for
sorted, baled aluminum cans is now 67.75 cents per pound, compared with
73.31 cents last month. This material was trading at an average 81.13 cents
per pound this time last year.

Sorted, baled steel cans remained steady month-to-month, at an average $188
per ton. The price was $249 per ton one year ago.

There was a little bit of good news in plastics. The price of PET beverage
bottles and jars came up this month by about 13% percent. PET is now
averaging 8.50 cents per pound, compared with 7.53 cents per pound this
time last month. Some regions are still trading as high as 12.00 cents per
pound, with most offering as low as 7.00 cents. PET was trading at 22.78
cents one year ago.

The national average price of post-consumer natural high-density
polyethylene (HDPE) is also up, now at an average 44.56 cents per pound.
This compares with 39.50 cents last month. The price was 104.25 cents this
time last year.

Color HDPE is up marginally, now trading at 6.41 cents per pound, compared
to 6.16 cents this time last month. It averaged 54.00 cents one year ago.

Polypropylene (PP) prices have dropped quite a bit over the past month,
however. PP is trading at 5.38 cents per pound, down from 8.31 cents last
month, or a drop of 35%. PP was 32.69 cents one year ago.

The national average price of Grade A film is also down, now at 19.50 cents
per pound, compared to 20.75 last month and 20.63 cents one year ago.

Grade B film is 6.94 cents, compared to 7.00 last month.

Grade C film remains firm at 0.94 cents per pound.

*These prices are as reported on the Secondary Materials Pricing (SMP)
Index. This pricing represents what is being paid for post-consumer
recyclable materials in a sorted, baled format, picked up at most major
recycling centers.*

*For a free trial to SMP’s Online Post-Consumer Pricing Index, visit
the **Recycling
Markets website* <http://www.recyclingmarkets.net/>*. You can also contact
Christina **Boulanger-Bosley **at **cmb at recyclingmarkets.net*
<cmb at recyclingmarkets.net>* or 330-956-8911.*

<https://shred-tech.com/>
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