Recovered Paper Prices Up Sharply Again in March
Pricing for old corrugated containers (OCC) and mixed paper set records for the fifth consecutive month, with both recovered fiber grades reaching levels that are more than double what they were selling for this time last year.
April 18, 2017 (Recycling Today) - Another month, another record-setting several weeks for recovered paper pricing. Pricing for old corrugated containers (OCC) and mixed paper set records for the fifth consecutive month, with both recovered fiber grades reaching levels that are more than double what they were selling for this time last year. One source says the price hikes are “explosive,” “crazy” and “risky.”
At $172.78 per ton, OCC pricing jumped $40 to $45 in the Northeast region, $35 in the Midwest, $40 in the Southeast and Southwest regions and $30 in the Los Angeles/San Francisco region, according to the March 6 PPW Yellow Sheet from Boston-based research firm RISI. (London-based Euromoney Institutional Investor PLC, the international online information and events group, has agreed to acquire 100 percent of the equity of RISI for $125 million.) Compared with OCC's U.S. average pricing in March 2015 of $71.39 per ton, the March 2017 price is double that plus an additional $30 per ton and is more than double the $79.17 price in March 2016.
Mixed paper also has seen a dramatic increase in pricing. At an average U.S. price of $96.11 per ton, mixed paper is more than double the March 2016 price of $46.39 per ton. This is the highest pricing point mixed paper has seen.
Furthermore, the price spread between these secondary fiber grades in March 2017 is more than double the price spread in March 2016: In March 2016, the difference in per-ton prices for OCC and mixed paper was $32.78 domestically; in March 2017, the difference was $76.67.
The full story ("Record-setting rates"), including pricing tables and U.S. exports to China, is available at Recycling Today's website: www.recyclingtoday.com/article/record-setting-rates
SOURCE: Recycling Today