<b>White Ledger Continues Sharp Decline</b>

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.

May 2001
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