A number of recovered paper grades remain stable in much of the U.S., while some grades are seeing continual decline and shipping rates remain low. Prices for old corrugated containers (OCC), mixed paper and old newspapers (ONP) were unchanged at domestic mills in the Northeast, Midwest, Southeast and Southwest as of Sept. 4 compared with Aug. 5, according to PPI Pulp & Paper Week‘s pricing survey. On the other hand, sorted office paper (SOP) declined by $5 to $10 per ton across the U.S.
OCC pricing along the West Coast also saw its first decline since March, when prices dropped $5 per ton for domestic mills. PPI Pulp & Paper Week says this decrease in price occurred even though export levels increased primarily because of the lowest shipping rates in years.
According to a source for a large recovery company based in the Northeast, export activity is busy in the Long Beach and Oakland, California, areas. The source, whose company exports a great deal of materia off of the West Coast, says the excess volume of recovered fiber the company has in North America is being consumed by Chinese and Indian buyers.
“The advantage export buyers in China or India have is they can buy anywhere in the world… They’re very astute buyers. They buy when it’s low and get out when it’s hot,” the Northeast supplier says.