Domestic Paper Stock Use Continues to Strengthen

The paper stock industry continues to grow in stature in the overall domestic paper industry. The most recent figures from the American Forest and Paper Association show the use of secondary fiber outpacing overall demand for most other raw materials used by the domestic paper industry.

Figures show consumption increased by 4 percent between 1998 and last year, with the 12-month consumption total standing at 37.520 million tons, compared to 36.069 million tons consumed in 1998.

Further upbeat news for the paper recycling industry was the sharp decline in the amount of recovered fiber being inventoried. The most recent figures show the continuing trend as more mills look to reduce the amount of the fiber they warehouse.

The decline results in less of the boom/bust scenario that often drives prices sharply up or down. The move allows for a steadier flow of fiber into the mills.

The average inventory at the end of December was 1.158 million tons, a 16.9 percent drop from figures during the same time the previous year.

While the figure is down from last December, it is up close to 12 percent from figures the previous month. There are several reasons for the upswing. Often some mills look to build up inventory as their orders soften. Also, with inclement weather a bigger issue early in the year some mills took the precaution of building up some inventory to prevent shortages.

A final reason and a true wildcard was the uncertainty with the year 2000 rollover. Most of the information was anecdotal, although it appeared a number of mills looked to buy slightly more material than usual to ensure a steady supply early in the year.