Evermore Recycling appetite said driving UBC pricing up
Dec 22, 2010 | 12:12 PM
| Sean Davidson
Used beverage container (UBC) prices, which have remained firm all year, have been driven by Evermore Recycling LLC's ability to overpay the market to meet its mammoth requirements, market sources told AMM.
Operational since January, Evermore has struggled to deliver volumes to its joint owners Alcoa Inc., Pittsburgh, and Atlanta-based Novelis Inc., sources claimed.
"The reason they've had to pay more than the market is because they are a new player with new people, and it will take them some time to build relationships. In order to meet their requirements they had no choice but to be aggressive on prices and overpay the market," a large supplier said.
While some market participants said they believe Evermore is still struggling to meet volume commitments, a few feel the company bought its required volumes, given its high prices.
"We've been able to procure everything we wanted to procure," John Woehlke, general manager of Nashville, Tenn.-based Evermore, said without addressing delivered volumes directly.....
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