OCC prices seem to be showing steady declines. With prices for the grade moving at anywhere between $45-$65 a ton in many locations, the level is off more than $100 a ton from figures less than one years ago.
Old news has seen a much better market lately. Although the price has slipped from its highs of earlier this year there seems to be a much better foundation for the grade. Prices have been holding at a firm level throughout the country. A large reason is that much of the downtime for newsprint mills was taken earlier this year. Now, several larger newsprint producers are implementing finished newsprint prices. It appears, so far at least, that this price hike will hold. This highlights the better stable environment for the grade.
The offshore market also has been decent enough to prevent any backlog of material.
Another positive sign is the other market opportunities for the grade. Although it used as a substitute for OCC at some mills, the grade also is being blended at other types of operations, including building products companies.
Finally, there seems to be some mild shortages of the grade on the open market. This is helping prevent any oversupply of cropping up. With most if not all the downtime at many newsprint mills already taken for the year it looks like there should be somewhat stable markets for the grade through the rest of this year.
The ONP market is helping keep the flow of coated book stock at a decent level. The grade is used as a whitening agent at some newsprint mills.
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