3.3 Markets

While delivered tonnages for 2019 were similar to 2018, there was a significant reduction in revenue generated in 2019 from the recycling markets. Due to import regulations changing in China, the North American recycling markets in 2019 finally hit an all-time low. This impacted domestic markets in 2019 as witnessed by oversaturation with recycling materials and thereby imposing greater demands (e.g., quality specifications enforced, dropping prices) to domestic sellers like EWSWA.

As a result, early in 2019, the fibre markets were hit hardest, as prices fell to an all-time low and eventually stabilized at this new low market price by the end of the year. Container market prices didn’t start their decline until late summer. It is important to note that while prices for containers dropped, this decrease was nowhere near the significance of the hardship experienced in the fibre markets in 2019. These significant market changes are reflected in Table 5 on page 9 of this report. More importantly, due to many EWSWA strategies like: pre-establishment in the domestic market, efforts of Waste Diversion staff to produce higher quality materials through continuous improvement efforts and capital investment, and ongoing successful work with buyers and contractors, EWSWA was able to move all materials in 2019.