1. Recyclable Commodities 1Recyclable Commodities - VRA 2015

2. Commodities They are raw materials used in industrial processes, in manufacturing, as well as for consumption. “Real assets” have an inherent value - different from 'financial assets.' Demand for commodities is driven both by their practical use in producing goods and services, and by their investment potential. 2Recyclable Commodities - VRA 2015

3. “Unprofitable Recycling Weighs On Waste Management” Average prices of recycled commodities fell 14% from January to March The company’s revenue from recycling fell $70 million, contributing to a 10% fall in its overall revenue to $3.04 billion for the quarter. “Recycling is in a crisis,” Mr. Steiner said in an interview. “It isn’t profitable for us, and we have to react to that by shutting down plants.” April 29, 2015 3Recyclable Commodities - VRA 2015

4. “Unprofitable Recycling Weighs On Waste Management” Continued from The Wall Street Journal April 29, 2015 Mr. Steiner said Waste Management’s recycling division lost $13 million during the quarter and shut down four recycling plants over the past year. More plant closures are planned, he said. “It’s as low as it’s ever been, but we haven’t seen any indication of a bottom,” Mr. Steiner said of prices for recycled materials. Market values of used plastics have fallen sharply, a decline some in the industry have attributed to lower crude oil prices, which have pushed down the cost of producing new plastic and left manufacturers less keen to work with recycled material. Slower economic growth in China and other countries also has reduced demand for used paper and other recycled commodities. Even prices of used metals are down. 4Recyclable Commodities - VRA 2015

5. Why recycling economics are in the trash bin By Jonathan Berr │MoneyWatch│April 7, 2015, 5:15 AM The recent unexpected collapse in oil prices is putting the squeeze on the recycling industry. As a result of crashing crude prices, it's cheaper for plastics companies to use new or virgin materials than recycled stuff. Prices are so low for recycled plastics and glass bottles that companies such as Waste Management (WM) or local governments have to pay to have it hauled away. It's a simple issue of supply and demand. "The bottom line is that what is recycled and what is not is directly linked to oil," said Tom Szaky, CEO of TerraCycle, which works with companies on programs to make packaging recyclable. "If the cost of collection and processing is greater than the material value, then the material becomes nonrecyclable. If it's less, then it's recyclable. It's that easy. And the material value is 100 percent dependent on oil prices as it's derived from oil." Prices for all plastics have fallen about 20 percent to 30 percent compared with last year, though they've firmed a bit in April, according to Brent Bell, Waste Management's vice president for recycling. The most common type of recycled plastic is polyethylene terephthalate, or PET, which is used in soda bottles. The Wall Street Journal reported that new PET now costs about 63 cents a pound, 7 cents less than the recycled variety. Other types of flexible or colored plastics aren't being recycled because recyclers can't find a market for them. 5Recyclable Commodities - VRA 2015

6. Crude Oil Prices November 2014 – April 2015 6Recyclable Commodities - VRA 2015

7. Container Pricing Trends – 5 Year 7Recyclable Commodities - VRA 2015

8. Implications of the Changing Curbside Mix Packaging material makes up around 30% of the residual waste stream. 32 million tons of plastic waste were generated in 2012, representing 12.7 percent of total MSW. http://www.epa.gov/osw/conserve/materials/plastics.htm http://www.epa.gov/osw/conserve/materials/plastics.htm “Contamination remains a problem for all recyclable commodities. ¹ Contamination affects bale quality, and bale quality affects the price that a reclaimer is willing to pay for the material. ¹ “Wishful recycling” includes items that community residents mistakenly place in the bin even though these items are not officially accepted by their curbside program. “ ¹ ¹ Making Sense of the Mix: Analysis and Implications of the Changing Curbside Recycling Stream Prepared for: American Chemistry Council Submitted by: Green Spectrum Consulting, LLC, and Resource Recycling, Inc. February 2015 8Recyclable Commodities - VRA 2015

9. Domestic Fiber Markets Modest markets While paperboard markets are improving modestly, markets for newsprint and printing and writing papers continue to struggle. Dan Sandoval April 6, 2015 The domestic paper industry is in a state of flux. The containerboard sector has benefited from the recovering U.S. economy and from consolidation that has created more dominant and healthier companies. Meanwhile, the domestic newsprint and printing and writing (P&W) sectors continue to suffer from declining demand. Even with the U.S. economy improving, neither of these recovered fiber grades have benefitted. North American newsprint demand declined by 9 percent to 6.5 million metric tons in 2014, marking 15 consecutive years of decline. 9Recyclable Commodities - VRA 2015

10. Fiber Pricing Trends – 5 Year 10Recyclable Commodities - VRA 2015

11. US linerboard export prices still under pressure from strong $, slow global growth, yet remain mostly stable Apr. 24, 2015 | Vol. 37, No. 16 US unbleached kraft linerboard export prices remain under pressure in global markets because of a strong dollar, increased supply, and sluggish global economic growth, though levels remain generally stable, according to contacts. "There's still too much supply from the US, Europe, South America, Canada, Russia, Australia, and other countries chasing too few orders," one trader said. More containerboard, both virgin and recycled, is being shipped into the global export market by producers in countries with weak currency, excess capacity, and slow domestic demand. "Customers are suddenly receiving offers at lower prices from mills they normally never hear from and this is making it competitive for US exporters," another trader said. 11Recyclable Commodities - VRA 2015