Paper

ALL QUIET ON THE PAPER FRONT

Keeping pace with June, markets for recovered fiber have remained relatively quiet. Sources report little activity of either extreme—the first few weeks of July have seen neither aggressive buying nor piling inventories.

Material of all grades continues to move, some more slowly in certain regions than others. Summer tends to be a slower time of year, with mills taking some time off, says one Northeastern processor.

Mixed paper has been lagging behind the other grades, says a source from the Northeast, but the market’s heavy-hitters—old corrugated containers (OCC) and old newspapers (ONP)—continue to move at a pace on par with the time of year.

Generation is steady, even up in some places like coastal communities and tourist areas that are hitting the peak of the summer vacation season.

Sources say that the current market activity is primarily domestic and that the export front has been quiet for weeks.

Another trend that’s shown no sign of letting up—to the chagrin of many—is the sad pace and price for sorted office paper (SOP), which has been down for months and has "taken a turn to the uglier side," says one Midwestern processor.

Secure document shredding firms are glutting the market with the grade, and the shredding has had some negative effects on the material’s quality, causing problems on both the supply and demand sides of the market, sources say.

But the flat market of the past few weeks could be a lull before the storm, sources say, as the industry will be gearing up for the big packaging season starting in a few months, which leads some to think that many grades—OCC in particular—could be ready for an upturn.

(Additional news about paper recycling markets, including breaking news and pricing, is available online at www.RecyclingToday.com.)

RECYCLING ACCESS REMAINS HIGH

The American Forest & Paper Association (AF&PA), Washington, says its latest survey shows that 86 percent of the U.S. population, or 254 million people, have access to curbside or drop-off recycling programs.

That represents a number that towers above what was taking place just 15 years ago, when only 15 percent of the U.S. population was served by curbside programs. According to statistics posted to the Web site of the Container Recycling Institute, Arlington, Va., that number rose throughout the 1990s, reaching between 50 and 60 percent of the population by the end of the decade.

AF&PA’s 2005 Community Survey measures and tracks the growth of access to community-level paper and paperboard recycling in the U.S. and has been conducted since 1994.

Key findings from the latest survey include:

86 percent of the U.S. population (254 million people) has access to curbside or drop-off recycling programs.

56 percent of the U.S. population (148 million people) has access to curbside recycling programs.

64 percent of the U.S. population (165 million people) has access to drop-off recycling programs.

Increased recycling access for many mixed paper grades—especially direct mail, telephone directories, and coated and uncoated paperboard—suggests that communities with existing curbside and drop-off programs are adding paper and paperboard categories to their programs.

An AF&PA news release notes that its "member companies are encouraged by the increase in grades of paper being recovered in existing recycling programs and see this as an important factor in helping to achieve the industry’s aggressive goal to recover 55 percent of the paper consumed in the U.S. by 2012."

HARMON ASSOCIATES ISSUES NEW GRADING STRUCTURE

The Harmon Associates Corp. subsidiary of Georgia-Pacific Corp. has announced revised recovered paper specifications and pricing that took effect on June 1.

The Jericho, N.Y.-based scrap paper broker says the new pricing structure will better reflect the quality of recycled fiber provided by recyclers based on how effective their sorting procedures are. "A number of suppliers invest significant capital and labor to consistently provide quality sorted and shredded waste paper," says Marc Forman, chief operating officer of Harmon Associates. "They deserve a fair market price for their efforts, and our buyers benefit because they can better manage their production process to effectively meet the end-users’ expectations."

Forman announced the new grading specifications at the Paper Recycling Conference & Trade Show, which took place in Atlanta in late June. He says suppliers of unsorted shredded paper will still have a market for their products, but the price will "reflect the quality of recycled fiber they are providing in the marketplace."

Harmon Associates, which trades between 5 and 6 million tons of scrap paper annually, has defined its Office Pack 1 (OP1) grade as having 0.5 percent or less of various contaminants, including carbon paper, Post-Its, mailing labels and coated copy paper. Total contamination to achieve the OP1 grade cannot exceed 2.0 percent.

The company’s Sorted Office Paper (SOP) grade cannot exceed 5.0 percent total contamination, defined as Post-Its, mailing labels, coated copy paper and groundwood/mechanical pulp fiber.

The Harmon Associates Post-Consumer Mixed Paper grade must be free of insoluble inks, coatings, and "excessive glues."

E.L. HARVEY WINS BIG WITH LOTTERY TICKET RECYCLING

A program for recycling non-winning lottery tickets is paying off big for Westboro, Mass.-based recycler E.L. Harvey & Sons and the Massachusetts State Lottery.

"Instant Re-Play," the lottery’s anti-litter program that rewards individuals that collect and recycle non-winning instant or scratch tickets, has yielded 50 tons of tickets.

The recycled tickets are converted into paper goods, such as tissue, toilet paper and napkins, according to Ellen Harvey, executive vice president of E.L. Harvey & Sons, which is helping to collect and recycle the tickets.

"The program is just getting started," she says. "The number of tickets we’ve collected has grown each time we’ve organized a collection, and we expect it to continue growing as word continues to spread."

An Earth Day collection on the Esplanade in Boston yielded eight tons of instant tickets in just five hours, while a June 28 collection at lottery headquarters in Braintree, Mass., resulted in the collection of 16 tons in five hours, according to a release from E.L. Harvey & Sons.

August 2005
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