Attached is your PO for deliveries of recyclables during November2020.
The overall market for recyclables made moderate improvements over the prior month. These improvements are due to pricing increases in fiber, metals, and a few plastic grades.
There were modest improvements in both domestic and export fiber pricing, both due to continued strength of the packaging market. The containerboard sector is running all out, but the tissue side is still struggling with the away-from-home business not fully recovering from COVID-19. The anticipated collapse in U.S. recovered paper pricing as China slows its imports at yearend did not occur. Most shippers are shifting these tons to mill buyers in India and Southeast Asian countries, helping prevent a pricing crash in November as many expected.
Specific to export demand, overseas paper mills are paying more for recycled fiber. However, rising freight costs are eating into our prices. Why are freight costs increasing? Ships and equipment bringing Holiday products from China to the U.S are in high demand. You might expect this equipment demand to create lower backhaul freight from the U.S. to Southeast Asia. But, ships and equipment exporting recyclables from the U.S. to Southeast Asia often are delayed in ports with inspections and unloading procedures. While this equipment is getting unloaded at destination, it is not available to return to the U.S. for more holiday shipments. Thus, the shipping lines are increasing freight costs for recyclables. For now, the increased price that overseas mills are paying for recycled fiber have been higher than the increase in freight costs. This may soon change as shipping lines have already announced another December freight increase, which, most likely, will reduce the value of exported fiber next month.
Some plastics and metals helped improve recyclable values this month. The demand for post-consumer plastics was again strong due to consumer use of plastic bottles as high-density polyethylene natural (HDPE-N) pricing continues to increase. Aluminum cans (used beverage can—UBC) pricing rose slightly in November. Aluminum cans are unique in that they were designed with recycling in mind. Since these cans potentially recycle forever, as long as consumers continue to stay at home and purchase products in these cans, we expect pricing to remain stable or increase slightly.
On an administrative note, we want to reemphasize that Pioneer will never email you to change remittance information. We will always call you if our banking data changes. At least one of our customers received a fake email asking them to change Pioneer’s bank account. This was an attempt to steal money from our customer. If you receive such notification, it is not real; please immediately call us at (503) 537-5428.
During these challenging times, we will be constantly watching these developments and will always strive to obtain the best pricing available. 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.
P.S. – Please note our Holiday schedule below.
Thanksgiving – we will be open for deliveries until 2 PM and be open for deliveries on Friday, NOV 27th.
Christmas Eve – we will close for deliveries at 2 PM.
Christmas Day – closed. We will be open for deliveries the following Saturday, DEC 26th.
New Year’s Eve – we will close for deliveries at 2 PM.
New Year’s Day – closed. We will be open for deliveries the following Saturday, JAN 2nd.