Paper

The domestic consumption of recovered fiber continues its sharp decline. According to the American Forest and Paper Association, Washington, domestic paper stock use dipped by 4.2 percent for the first seven months of the year to 19.5 million tons. The consumption figure the same time last year was 20.4 million tons.

For July, the most recently reported month, consumption checked in at 2.8 million tons, compared to last July’s consumption figure of 3.0 million tons.

The sharp decline in domestic use follows the steep decline in the production of recycled paperboard over the first seven months of the year.

While consumption continues to slide, the inventory of recovered fiber at domestic mills looks far different. At the end of July, the inventory level stood at 1.076 million tons, more than a 12 percent increase from corresponding 2002 figures. While the figure is up from last year, the average inventory level is down about 3.4 percent from June.

As domestic demand slumps, exports of recovered fiber skyrocket. According to the U.S. Commerce Department, the export of recovered fiber for June weighed in at 991,000 tons, a 21.6 percent jump from the June 2002 figure.

On an annual rate, exports of recovered fiber stand at slightly less than 13.5 million tons, compared to last year’s export total of 11.4 million tons.

Export of recovered fiber to China continues to stabilize recovered fiber pricing in the U.S. Other nations’ imports of U.S. recovered fiber have picked up also. Shipments of recovered fiber to Canada climbed by more than 13 percent for June to 220,825 million tons.

With U.S. currency still in a favorable position for exporters, the demand for recovered fiber outside the U.S. should continue at its brisk pace, offsetting the domestic slowing.

(Additional news on paper recycling markets, including breaking news and pricing, is available on-line at www.RecyclingToday.com.)