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6.H. - Page 14 of 27 <br />South Bay Recycling, LLC <br />Graph #1 <br />$240.00 <br />$220.00 <br />$200.00 <br />$180.00 <br />$160.00 <br />c <br />H $140.00 <br />v $120.00 <br />CL <br />$100.00 <br />a $80.00 <br />$60.00 <br />$40.00 <br />$20.00 <br />$0.00 <br />-$20.00 <br />2017-2018 Price Comparison <br />Old News Paper/High Grade Paper (ONP/HGP) v Mix Paper <br />(MP) <br />n n n n n n � r` r` n n n rA rA o] o0 oa op o7 cp cp op oo w <br />s a ¢ o z❑ ° a <br />o <br />a °� Z o <br />CHINA REDUCES MP DEMAND <br />I�II�A CHINA BANS MP <br />GNP/HGP <br />SMP <br />In 2018 several haulers and MRFs were forced to send Mixed Paper to landfills. This was done either by <br />stockpiling bales in hopes of a market resurgence only to find there was none, or no longer sorting it from the <br />commingled stream and simply letting it go to residue without being sorted and baled in the MRF. In either <br />case the outcome had negative impacts on diversion levels and public perception of recycling. <br />Today there is a unique opportunity available to SBWMA which is created by customer demand, technology <br />developments for MRF processing equipment, and bond refinancing. These events provide SBWMA with a <br />decision to make regarding the MRF: shall we invest in the future of our MRF? <br />In our professional opinion, by investing in the proposed MRF equipment upgrades there will be two changes <br />to the fiber commodities: (1) less Mixed Paper being produced, and (2) more sorted fiber products being sold <br />at higher pricing. These changes will increase the monthly revenues and also increase the number of end <br />users that are interested in our fiber products. <br />The initial economic benefit is producing a higher quality paper grade from the commingled materials which <br />are collected in single family residential collection routes. That paper is mechanically screened on the <br />residential sort line to create paper which is currently sold as Mixed Paper (a low value commodity). In <br />addition to removing most of the cardboard, the proposed system will also remove contamination and <br />SBWMA BOD PACKET 02/28/2019 <br />333 Shoreway Road I San Carlos, California 94070 <br />Tel 650.802.8355 1 Fax 650.412.2495 1 SBRecycling.net <br />AGENDA ITEM: 106 ATTACHMENT B — p3 <br />201 <br />