Commodity Report

Through the first half of this year, paper stock markets have been on a tear. Prices for most grades of recovered fiber have soared to near highs, and many paper recyclers are looking aggressively to bring in more tonnage.

Several sources in the Eastern U.S. say markets for pulp substitutes, deinking grades and mixed paper are exceptionally strong, with a combination of offshore and domestic purchases driving prices upward. Domestic tissue and towel mills have been purchasing large blocks of the these grades, while consumers in China have been buying material to feed new capacity that is coming online in that country.

While bullishness appears to be a common sentiment, several sources say signs indicate pulp prices are starting to pull back a bit. This could result in downward price movements for pulp substitutes and deinking grades, including a number of office grades.

(Additional information on secondary paper markets is available from SDB’s sister publication Recycling Today at www.RecyclingToday.com.)