Prices continue to slide for
sorted white ledger as orders appear few and far between. The slide in prices
has to do with the continuing problems with the pulp market, as well as the
lack of any improved operating rate at domestic mills throughout North America.
Another factor adding to the
overall problem with the SWL market is the concern about some deinking mills
running into major cash problems. There have been a number of reports of some
consumers extending out payments for loads. This is creating even more
difficult times for many paper stock dealers.
With SWL prices spiraling
downward with little signs of any pickup, the key now is being able to move
material. This, some vendors note, is becoming an increasingly difficult task.
Compounding problems for
many handlers of the high grades has been the problems with differentiating
other white grades. Over the past several months a number of paper stock
dealers have been saying that the computer paper market is fast becoming an
extinct grade. With mills becoming choosier with their fiber furnish, and
prices continuing to sink, many of the buyers who previously had sought out CPO
as a cleaner grade of material, are now refusing to pay any price difference
between that grade and lower valued SWL.
The change in purchasing
habits is forcing more and more paper stock dealers to opt to stop separating
out the two grades.
The SWL and CPO problems
also are being felt with office grades. Sorted office pack continues to see
downward pressure. Offshore, there is very little interest in the grade, while
domestic mills continue to see far more material than they can buy.
While the mindset seems to
be that more board mills are looking to hold their OCC prices at their present
levels, the same can’t be said for office pack. Prices continue to erode, and movement
is becoming increasingly difficult.
The steep drop in prices for
the grades is causing some paper stock dealers to stop handling the material. With
the high cost of processing the material, many vendors express concern that at the
present price they are losing money on every load they sell.
Although it is only the middle
of May, many recyclers feel the rest of the year will be a tough go, with markets
perhaps only marginally better than they are right now.
Explore the May 2001 Issue
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