Markets go UP Markets go DOWN Succeeding With the Markets Atlantic - - PowerPoint PPT Presentation

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Markets go UP Markets go DOWN Succeeding With the Markets Atlantic - - PowerPoint PPT Presentation

Business Perspective on Markets go UP Markets go DOWN Succeeding With the Markets Atlantic Coast Recycling Presentation Yesterday 1 2 Recycling Genesis Through the Years 3 4 Adaptation 5 Change John Stanton Recycling Development


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Markets go UP – Markets go DOWN

Atlantic Coast Recycling

Business Perspective on Succeeding With the Markets

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Presentation

2 3 4 5

Yesterday

1

Recycling Genesis Adaptation Change Through the Years

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John Stanton

Recycling Development and Marketing

  • 25+ Years Experience in Recycling Planning, Marketing

and Operations

  • Previously Responsible for 400,000 tons of Recyclables

for GSP- $100 Million Annual Budget

  • Member ANJR
  • Early Member NJ Recycling Forum
  • BS in Business Administration
  • MBA in Marketing

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YESTERDAY

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Yesterday

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Yesterday

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Yesterday

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Garden State Paper Company

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Marcal Paper Products

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How did Mandatory Recycling Start in the United States?

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I got married

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New Jersey became the first state to require mandatory recycling

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Things Change

  • Stamps now cost 49 cents
  • Big Bang Theory is the No. 1 show
  • Bruce Willis is no longer married to

Demi Moore

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THROUGH THE YEARS

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Source Separated Commodities

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Dual Stream

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Single Stream

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Single Stream Overview

  • Up until a few years ago single

stream was unknown to most

– Single Stream is the mixing of commingled containers and fiber together

  • Reduces collection costs
  • Increases MRF processing costs
  • Introduces potential contamination to

paper mills - Glass

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Source Separated Recyclables Dual Stream Collection Single Stream

Evolution – Not Revolution

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ADAPTATION

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Adapt

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CHANGE

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Contracts

Past

  • Floor Prices Offered
  • Market took all the risks
  • Municipalities only had

upside

– Little or no risk

Present

  • Sharing of Risks
  • Sharing of Rewards
  • There can be a charge for

accepting recyclables

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Sharing Markets

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Commodity % of Mix Net Weight Current Value ** Total Revenue Glass 56.0% 1,120.00 lbs ($30.00) per ton * (16.80) $ Plastics 30.0% 600.00 lbs $160.00 per ton*** 48.00 $ Steel Cans 4.0% 80.00 lbs $17.50 per ton*** 0.70 $ Aluminum 2.0% 40.00 lbs $550.00 per ton*** 11.00 $ Out Throws/Trash 8.0% 160.00 lbs ($98.00) per ton * (7.84) $ Total 100.0% 2,000.00 lbs 35.06 $ Less Processing ($78.00) per ton Recyclables Value (42.94) $ Share 50%/50% (21.47) $

*Glass and Trash values include Disposal and Trucking. **Current Commodity values based on SecondaryMaterialsPricing.com HIGH current price for N.Y. area as published by RecyclingMarkets.net

***Plus 30% over current prices to demostrate market changes

COMMINGLE PURCHASE PRICING FORMULA

Commodity Value Split

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Sharing Markets

Single Stream Formula

% of Mix Lbs. Publication Price Values Glass 20% 400

  • $30.00
  • $6.00

Plastics 14% 280 $160.00 $22.40 Steel Cans 2.00% 40 $17.50 $0.35 Aluminum 1.00% 20 $600.00 $6.00 Trash 11% 220

  • $98.00
  • $10.78

Mixed Paper 52% 1040 $80.00 $41.60 Total 100% 2000 $53.57 Less Processing $75 Purchase Price

  • $21.43

Plastic, Steel, & Aluminum prices - Secondary Materials Pricing High NY as published in Recycling Markets.net Mixed Paper - PPI Publication first issue of the month under #2 mixed NY High Export

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EPILOGUE

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“Just when you think it can’t get any worse, it can. And just when you think it can’t get any better, it can.” ~Nicholas Sparks

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Thank You