Philip Zigby Markets Update May 2013. Municipal Waste Association. The good, the bad, and the ugly. Marketing Trends Green fencing. ONP Old Newspaper. THE GOOD OCC remains strong. Market is in balance from a supply and demand point Fluctuations in pricing will be minimal THE BAD
OCC remains strong.
Market is in balance from a supply and demand point
Fluctuations in pricing will be minimal
ONP #8 pricing is slipping
MRFs are slowing down the lines and adding staff to make grade
Cost of future processing contracts may increase
Mixed fibre grade is slowly disappearing
Inspections results Chinese ports are ranging from delays to rejections carrying tens of thousands of dollars in fees
The debate on thermoform clamshells seems to have subsided. Virtually all processors are accepting them in their feedstock
Pricing continues to fall as China is slow to come back into the PET market
More and more PET containers are being sold with a plastic sleeve making it difficult for optical sorters to identify materials.
Increases costs at the MRF and down streams
Ontario has a strong established presence for the processing of mixed plastics
No municipality should be void of an option to divert mixed plastics
With China currently not buying #3-#7, US supply is looking to market into the Ontario processors, now more than ever it is important to cultivate long term relationships with processors.
Some MRFs have been “Cherry Picking” the higher value polyolefin from the stream, puts into jeopardy the mixed rigid program
Tubs and lids pricing still around $200mt however lower costs for virgin material may result in lower pricing
No shortage of buyers for metals, everyone loves metal
Pricing continues to soften, steel price down again for May and June
Markets for prime grade aluminum are very restrictive and quality standards are being adhered
Downgrades and rejections have become common
Contrary to popular belief there is a home for glass in Ontario, clear, coloured and mixed broken glass .
The quality of MBG in Ontario has deteriorated and is causing stress on the market processors
The cost to MRFs to improve glass clean up systems is not insignificant. Will this have an impact on Blue Box best practices and funding? Is there CIF funding available
EPS has some homes, it will continue to be an expensive commodity to handle
THE BAD AND UGLY
With China out on film, MRF grade film is on the verge of being crippled as a commodity
Hope may be on the horizon with facilities such as the EFS plant in Listowel handling this film grade.