Higher quality, higher value

Improving recovered fiber baler quality is one shift that can help to strengthen the overall paper stock industry, according to speakers at the “Spotlight on Paper: Addressing Paper Bale Quality” session at the Institute of Scrap Recycling Industries (ISRI) 2016 Convention & Exposition (ISRI2016), April 2-7 at the Mandalay Bay Convention Center in Las Vegas.

Recovered fiber bale quality has taken a step backward in recent years, according to Johnny Gold, president of The Gold Group Recycling Consultants LLC, Swampscott, Massachusetts. Gold’s remarks were read by session speaker Sandy Rosen, as Gold, who was to serve as the session’s moderator, was unable to attend the event because of an emergency.

Rosen is the outgoing president of the Paper Stock Industries (PSI) Chapter of ISRI, Washington, and serves as CEO of Great Lakes Recycling, Roseville, Michigan. He introduced Myles Cohen, his fellow speaker and incoming PSI president. Cohen most recently served as vice president of PSI and is currently president of Pratt Recycling, Conyers, Georgia.

Rosen said over the past decade, as collection methods for recyclables have changed, quality has suffered. It will take education and effort to improve quality standards. “By increasing awareness and talking about ways to improve quality, then we as an industry will benefit as a whole,” Rosen said.

He added, “If we as an industry identify higher quality has a higher value, then that additional revenue will encourage other processors.”

Talking between buyers and sellers is most important, he said. Retaining relationships and engaging in continual conversations are what it takes to maintain not only good business but also good quality, Rosen added. “You can’t just ship a load and think everything’s going to be OK.”

He said, “I believe increasing quality strengthens us as an industry.”

As a broker, Leonard Zeid of Midland Davis, St. Louis, who attended the session, said he hears from both sides of the equation. According to suppliers, “it seems like the strike zone on quality can be a moving target in the middle, depending on whether it’s June or December,” Zeid said.

According to suppliers, “it seems like the strike zone on quality can be a moving target in the middle, depending on whether it’s June or December.” – Leonard Zeid, Midland Davis

Feedback is good for mills, he added.

According to Gold’s prepared remarks, now is as good as any time to get ahead of the issue. “It’s time to feel safe about shipments,” he writes. “As an industry, we need to improve quality.”

Gold’s remarks mentioned PSI members’ work to establish a Bale Quality Task Force.

Cohen said much discussion has occurred surrounding specifications and the Bale Quality Task Force. However, he questioned how the task force differs from PSI’s Specifications Committee.

During ISRI2016, the ISRI Paper Division and board of directors voted to approve the proposed draft changes for recovered fiber grades to the “ISRI Specifications Circular.”

Old newspapers (ONP) grades Nos. 6, 7 and 8 will be deleted, as will mixed grades Nos. 1, 2 and 3. The new grades to be added to the circular are sorted clean news (SCN), sorted residential papers (SRP) and mixed paper (MP).

Domestic pricing for ONP and MP, as well as for old corrugated containers (OCC) and sorted office paper (SOP), remained flat month over month in the Northeast region, according to the April 5 PPW Yellow Sheet from Boston-based research firm RISI. For MP, domestic pricing increased from March in every other U.S. region reported by RISI, including a $5 hike in the Midwest, Southwest, Los Angeles, San Francisco and Pacific Northwest regions and $10 in the Southeast. OCC domestic pricing remained stable in all U.S. regions month over month, with the exception of a $5 increase in the Midwest, Los Angeles and San Francisco.

Pricing for recovered paper grades exported to China increased month over month out of every region, with the exception of SOP, which dropped on the West Coast by $2 out of Los Angeles and by $1 in San Francisco.

For a free trial of RISI’s PPW Yellow Sheet pricing, please visit www.risi.com/rt.