Paper

The recovered paper market in general is picking up steam, lead by old corrugated containers (OCC). Demand for the grade is strong domestically and overseas, with a general $5 per ton increase in the Midwest. Export prices for OCC are hovering around $123 per ton delivered to the harbor on the West Coast.

The market for old newspapers (ONP) has remained fairly unchanged since June, although sources in the Midwest and on the West Coast report a slight drop in prices and demand—particularly for No. 8 news.

High grades have fared well this month, with SOP (sorted office paper) prices jumping $10, according to one New England recycler. Prices for white ledger and coated book have also firmed up, while mixed paper has remained unchanged.

According to two sources, there is talk in the industry of stricter standards and inspections of material being shipped to China. One West Coast broker reports that he has heard rumors of Chinese buyers proposing a revised standard that would reduce the acceptable amount of contaminants and out-throws, however nothing official has been announced.

The West Coast source points out that such a change would be difficult because a large amount of the OCC bound for China comes from material recovery facilities (MRFs), and the contaminants and out-throws tend to be higher.

Traditionally, the market slows up in the summer months as printers take vacation time and mills schedule downtime, but sources report this seasonal slump has yet to be seen. Generation of scrap paper has remained steady. The Fourth of July holiday in the middle of the week could slow the market up, one source says. However, he adds, "If the mills need materials, they’ll find a way to do it."

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