Paper

What one Midwestern broker describes as "screaming demand" from overseas has kept the scrap paper market relatively stable throughout March.

The broker says the majority of the demand for OCC is still coming from China and that he’s getting weekly calls from exporters, which tells him the markets should stay that way.

And while processors may be enjoying the booming export business, it’s been tough on domestic mills, which are having some trouble competing. However, according to industry sources, the export price for OCC has seen a slight drop in asking price of about $5 (in $1-$2 increments) throughout the course of the month, helping to close the gap between export and domestic prices.

Sources across the country report that office grades are still suffering from a generally weak market. They say that the increasing interest in secure document destruction is continuing to have a negative effect on office grades and coated book by flooding the market with supply. "We’re creating more of that then ever before," says another broker.

A California recycler says the price decline for office pack has been significant—nearly $15 in some cases. He says a large consumer in China has a large inventory built up, and other regular buyers in Mexico, the United States and the rest of Asia are equally well supplied, curtailing buying.

The effect has been felt domestically, too. A recycler from New England reports that office grades have fallen $5.

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