Paper

The Waiting Game

Anticipation seems to be the name of the game in the scrap paper market of late. The end of 2005 saw repeatedly falling prices, especially for old corrugated containers (OCC), and 2006 opened with a sense of stability.

Sources say a steady market continues as the first quarter of the fiscal year comes to a close.

"Steady is a good word for it," says a paper recycler located in the Southwest describing the current market.

Prices remain fairly unchanged, although OCC has shown signs of strength. In February, mills seemed to be swimming in high inventories, but as of March things were starting to change. Several sources report mill inventories are shrinking, which means supply is tightening up. Many predict that demand will start to reflect the decease in supply, and prices will rise to match in the near future.

The market for mixed paper is also opening up, and one source reports increased buying on that front as well.

Prices for sorted office paper (SOP) and white ledger have held, in spite of the high volumes that typically come with this time of year. This situation comes as something of a surprise to some in the industry. "Mills must be running really well," a Midwestern paper packer says.

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