The UBC Market: Untenable Valuation

In our Final Thoughts commentary last week, we discussed how used beverage container (UBC) price had become expensive.

Conversations at the Platt’s conference centered around what would break the upward trend in prices. As I learned from my oldest mentor at Cargill (when I was a very green and very naïve grain trader), “the cure for high prices is high prices.” That means someone must walk away from the market and take the pressure off the price. It appears one of the major buyers has now done so, with pricing now easing relative to Midwest P1020.