Philip Zigby
Markets Update
May 2013
The good, the bad, and the ugly
THE GOOD
•OCC remains strong.
•Market is in balance from a supply and demand point
•Fluctuations in pricing will be minimal
THE BAD
•ONP #8 pricing is slipping
•MRFs are slowing down the lines and adding staff to make grade
•Cost of future processing contracts may increase
THE UGLY
•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 GOOD
•The debate on thermoform clamshells seems to have
subsided. Virtually all processors are accepting them in their
feedstock
THE BAD
•Pricing continues to fall as China is slow to come back into the
PET market
THE UGLY
•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
THE GOOD
•Demand remains constant and supply is low, pricing remains positive
THE BAD AND THE UGLY…. They can take a break on this one.
THE GOOD
•Ontario has a strong established presence for the processing of
mixed plastics
•No municipality should be void of an option to divert mixed plastics
THE BAD
•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.
THE UGLY
•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
THE GOOD
•No shortage of buyers for metals, everyone loves metal
THE BAD
•Pricing continues to soften, steel price down again for May and June
THE UGLY
•Markets for prime grade aluminum are very restrictive and quality
standards are being adhered
•Downgrades and rejections have become common
THE GOOD
•Contrary to popular belief there is a home for glass in Ontario,
clear, coloured and mixed broken glass .
THE BAD
•The quality of MBG in Ontario has deteriorated and is causing
stress on the market processors
THE UGLY
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
THE GOOD…. AS IT GETS
•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.
NEW MRFS BUILT AND OPERATIONAL
•Canada Fibers in Toronto, Waste Management in
Cambridge
•If you can get in , go and see them. Processing the
largest volumes in Ontario