Recovered Paper Market Remains Strong, Mills Hope for Price Relief

Baled OCC, Old Corrugated Cardboard, in 44,000-lb Loads

By Brook Edwards, Market Analyst, The Brown Sheet™

April 27, 2011 - Baled corrugated (OCC) is moving — you should not have any trouble moving material. Exporters off of both coasts have not been chasing the market, just buying what is offered.

Domestically, mills are looking for a drop to help their bottom line, but at this point, and since nothing is backing up, it is hard to see downward pressure on the market other than the mill managers want to see a drop.

The Southeast U.S. for the last two months has been running wood chips and declining to pay the overage in the baled market. There most likely will be somewhat of an adjustment to counteract the spring rains and it is possible by next week you might see a slight increase in demand from Southeast buyers, since it's a little tougher to run as much wood as they would like.

Newspaper (ONP) has softened because winter has past and the cellulose manufacturers are letting go some of their contracted paper — ONP 8 and 9 — on the market to take advantage of pricing.

Sorted Office Paper (SOP) is in demand domestically because mills do not want to lose their suppliers to overseas buyers, so the price is staying up.

The amount of mixed (mixed paper) being used by mills is high and it does not sit in a producer's warehouse waiting to be shipped.

However, since exports are not over-active, all pricing for April should remain the same as where it started the month.

See The Brown Sheet: April 26, 2011 Price Sheet (pdf).

About The Brown Sheet™
The Brown Sheet is a brief bi-monthly newsletter that focuses on the recycled fiber market and provides recycled fiber producers with the knowledge they need to negotiate fair terms and prices for their baled product.

The Brown Sheet reports price changes for corrugated and low-grade fiber products and explores current and future markets.

For further informmation on the recycled fiber market and recovered paper pricing, please visit The Brown Sheet website at: The Brown Sheet

SOURCE: The Brown Sheet