scott mouw nc denr · scott mouw nc denr ... onp 34.14% $146.00 $49.84 $85.00 $29.02 $73.33 $25.03...
TRANSCRIPT
Scott Mouw
NC DENR
10/22/2013
Recycling Material Markets • Recycling markets generally follow the economy. • Global appetite for materials shifting to recovered
commodities; export markets are an integral part of the picture.
• Energy prices also affect markets – especially for plastics. • Some markets are local or regional in nature – e.g.,
organics and shingles. • Market efficiency depends on the cost-effective flow of
small volumes into larger volumes. • In general, infrastructure and market value are improving
over time, but fluctuating commodity cycles should be expected.
Observations on Traditional Materials In the early days of recycling, markets were under-developed and
payment of processing fees was “normal”
Now, general market and commodity conditions have improved enough to eliminate paying to process.
The “basket” of materials has enough consistent value for possible revenue sharing – with important caveats.
In the early days, communities led the development of processing infrastructure.
Now, processing infrastructure is largely privatized and heading more that way
Private processing infrastructure is also fairly competitive, offering shopping opportunities for local governments.
History of Fiber Prices Since 1996
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
Mar
-96
Au
g-9
6
Jan
-97
Jun
-97
No
v-9
7
Ap
r-9
8
Sep
-98
Feb
-99
Jul-
99
De
c-9
9
May
-00
Oct
-00
Mar
-01
Au
g-0
1
Jan
-02
Jun
-02
No
v-0
2
Ap
r-0
3
Sep
-03
Feb
-04
Jul-
04
De
c-0
4
May
-05
Oct
-05
Mar
-06
Au
g-0
6
Jan
-07
Jun
-07
No
v-0
7
Ap
r-0
8
Sep
-08
Feb
-09
Jul-
09
De
c-0
9
May
-10
Oct
-10
Mar
-11
Au
g-1
1
Jan
-12
Jun
-12
No
v-1
2
Ap
r-1
3
Newsprint Cardboard Office Paper Mixed Paper
Fiber Prices Since the Recession
0.00
50.00
100.00
150.00
200.00
250.00
300.00
350.00
Jul-
08
Sep
-08
No
v-08
Jan
-09
Mar
-09
May
-09
Jul-
09
Sep
-09
No
v-09
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-10
Jan
-11
Mar
-11
May
-11
Jul-
11
Sep
-11
No
v-11
Jan
-12
Mar
-12
May
-12
Jul-
12
Sep
-12
No
v-12
Jan
-13
Mar
-13
May
-13
Jul-
13
$/t
on
Newsprint Cardboard Office Paper Mixed Paper
History of Aluminum, PET and HDPE Prices (per .lb) since 1996
0.00
0.20
0.40
0.60
0.80
1.00
1.20
Mar
-96
Au
g-9
6
Jan
-97
Jun
-97
No
v-9
7
Ap
r-9
8
Sep
-98
Feb
-99
Jul-
99
De
c-9
9
May
-00
Oct
-00
Mar
-01
Au
g-0
1
Jan
-02
Jun
-02
No
v-0
2
Ap
r-0
3
Sep
-03
Feb
-04
Jul-
04
De
c-0
4
May
-05
Oct
-05
Mar
-06
Au
g-0
6
Jan
-07
Jun
-07
No
v-0
7
Ap
r-0
8
Sep
-08
Feb
-09
Jul-
09
De
c-0
9
May
-10
Oct
-10
Mar
-11
Au
g-1
1
Jan
-12
Jun
-12
No
v-1
2
Ap
r-1
3
Aluminum PET HDPE
Composite Container Prices Since 1996
0.00
0.20
0.40
0.60
0.80
1.00
1.20
1.40
1.60
1.80
Container Prices Since the Recession
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
0.90
1.00N
ov-
08
Jan
-09
Mar
-09
May
-09
Jul-
09
Sep
-09
No
v-0
9
Jan
-10
Mar
-10
May
-10
Jul-
10
Sep
-10
No
v-1
0
Jan
-11
Mar
-11
May
-11
Jul-
11
Sep
-11
No
v-1
1
Jan
-12
Mar
-12
May
-12
Jul-
12
Sep
-12
No
v-1
2
Jan
-13
Mar
-13
May
-13
Jul-
13
$/p
ou
nd
Aluminum PET HDPE - Natural
Your Relationship With MRFs
New paradigm for bids/market relationships:
MRF cost coverage, then possible share
Fixed vs float
Set it and forget it
Focus attention on efficiency, material quality
Your residue hurts your relationship
MRF Costs, Material Values, “Shareable” Revenue MRF Processing Baseline: $70/ton
Summer 2011 Summer 2012 Summer 2013
% of 1 MRF ton Price/ton Value Price/ton Value Price/ton Value
Fiber Materials
ONP 34.14% $146.00 $49.84 $85.00 $29.02 $73.33 $25.03
Mixed Paper 16.66% $155.00 $25.82 $86.00 $14.33 $68.67 $11.44
OCC 11.26% $183.00 $20.61 $120.00 $13.51 $139.00 $15.65
Fiber Sub-total 62.06% $96.27 $56.86 $52.13
Container Materials
Glass 27.16% $16.00 $4.35 $16.00 $4.35 $16.00 $4.35
Aluminum Cans 0.86% $1,820.00 $15.65 $1,440.00 $12.38 $1,440.00 $12.38
Steel Cans 2.44% $273.00 $6.66 $137.00 $3.34 $170.00 $4.15
PET 3.78% $600.00 $22.68 $320.00 $12.10 $360.00 $13.61
HDPE (colored prices) 2.05% $360.00 $7.38 $420.00 $8.61 $360.00 $7.38
Mixed Plastics 1.31% $100.00 $1.31 $100.00 $1.31 $100.00 $1.31
Cartons/aseptics 0.29% $100.00 $0.29 $100.00 $0.29 $100.00 $0.29
Container Sub-total 37.89% $58.32 $42.38 $ 43.47
TOTAL $154.59 $99.24 $95.59
Shareable Portion $84.59 $29.24 $25.59
“Basket” Price of Traditional Material Values
$-
$20.00
$40.00
$60.00
$80.00
$100.00
$120.00
$140.00
$160.00
$180.00
Spring2011
Summer2011
Fall 2011 Winter2011/12
Spring2012
Summer2012
Fall 2012 Winter2012/13
Spring2013
Summer2013
Other Aspects of MRF Access For counties/others far from MRFs:
Your revenue share can cover transport
Use of transfer options
For municipalities/others using collection contractors:
Contractor access to shared revenues affects your pricing.
General questions to keep in mind:
who delivers to MRF?
how far?
what kind of delivery?
Economics of Some Non-Traditional Materials
• Materials that pay: – Used cooking oil
– Cell phones
– Used motor oil
– Separated OCC (with caveats)
– Shingles?
• Materials that can be cheaper to manage using state contracts: – Lights containing mercury (fluorescents)
– Electronics
Conclusion: General Guidance on Traditional Material Marketing
Marketing of materials is a partnership
Marketing exposes governments to risk/reward
Expect and plan for $0 when budgeting
“Make money” by focusing on operational efficiency – make it by saving it.
Where and when feasible, pursue revenue-sharing that is fair and long-term in thinking.
Use material revenues for accelerating capital purchases or special efforts to enhance recovery – not for covering ongoing operational costs.
Use savings to enhance recovery – e.g., human resources with new time on their hands.
Thank you! Scott Mouw [email protected] 919-707-8114 Rob Taylor [email protected] 919-707-8139