Once again, the market for recyclable materials in August is mixed with
the paper grades moving strongly higher, metals slightly higher and
plastics lower. The decline in the plastic grades was modest which has
allowed the overall yield value of ResMix to move significantly higher.

The movement in price for the paper grades was driven by a shift in
demand from Mid-Western mills. The upward movement in price there then
pulled paper from both coasts forcing export buyers to respond with
higher pricng as well. This rapid and significant movement in price is
illustrative of the pricing model I have spoken of at numerous trade
conferences recently. If you will remember, I argued that when a shift
in demand occurs, the correction in price will be both more rapid and
dramatic than before comingled collection systems were adopted in North
America because the supply of ResMix is now fixed except over the very
long run.

Looking forward, I see nothing on the horizon to change the seasonal
factors that impact the market for recyclable commodities which means we
can expect demand to shift lower and pricing with it by late summer or
early fall, all other things being equal. That being said, I do think
there is now a greater probability the expected decline in ResMix value
will bottom at a level higher than in recent years.