Hot Times in the OCC Market

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

By Brook Edwards, Market Analyst, The Brown Sheet™

May 25, 2011 - The OCC market is extremely hot going into the end of the week for mills wanting to run all weekend. It is spotty depending on whom you are talking to, but the market is willing to pay $10 higher plus than what we posted at the beginning of May for trailer loads of OCC 11 if you can ship this week. How that will transform after the holiday weekend is yet to be determined. Generation has the Eastern United States somewhat short of supplies.

Most mills will be tell us they will be losing money paying those prices but have enough current orders to keep the machines running. This is not quite the same thing we heard the first week of the month. Like all businesses in this economy some are returning to pre-recession production while others are lagging. It appears that the smaller mills which do not have the great networks of being able to shift tons from one location to another are the ones feeling the squeeze and having to pay the big bucks.

So, apparently this is a sign of what is to come in the first two weeks of June and against earlier predictions the domestic (USA) market will tick-up for the raw product needed to run paper mills, OCC and Mixed.

Mixed is also another story — it is being gleaned trying to turn it into office paper.

If you have corrugated and you are in the Eastern portion of the United States it appears you can name your price for the next few days.

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