Paper

SIGNS OF STRENGTH

2006 is finally looking up for the recycled paper market, particularly old corrugated containers (OCC), which saw a $10 price increase in April.

The small jump has been much anticipated after a disappointing last quarter of 2005 where OCC prices languished around $45 per ton, which was "crippling for everybody," says one Midwestern packer.

Prices increased a bit in March, and with the $10 boost in April for OCC, the entire market is picking up steam, a trend sources hope is here to stay heading into the summer months. "The paper business is looking brighter," one Midwestern recycler says.

However, one source says the West Coast is showing somewhat softer markets for OCC. "Inventories are high, and exports aren’t too strong yet," the packer reports. Midwest markets for some high grades, particularly for manifold white ledger and white blank, are sluggish because of mill closings.

China continues to buy steadily, but not aggressively, says a Southwestern paper recycler. A Midwestern recycler says China uses enough paper to ensure its status as a regular buyer, even if it isn’t insatiable as in previous years.

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