The use of recovered fiber by domestic paper and paperboard mills continues to slump. While the overall paper industry has been showing little in the sign of an upswing, the use of recovered fiber has been declining at a far sharper rate than overall paper and paperboard production.
According to the American Forest and Paper Association, for the most recently reported month consumption stands at 2.760 million tons, compared to last June’s paper stock consumption level of 2.904 million tons.
The figure for the month brought the six-month consumption total to 16.741 million tons, a 3.8 percent decline from figures the same time last year.
While consumption has been slipping through this year, the inventory of recovered fiber at domestic mills has been climbing. The increase has been sharp, with the figure for June up 6 percent for the year, and almost 30 percent from figures the same time last year.
The sharp increase can be seen with the concern, expressed by many domestic mills, that the strong buying by Chinese interests are forcing more paper and paperboard mills to continue taking in material to ensure that enough material comes through their door.
With Chinese mills buying more material from throughout the country, despite a soft market these domestic mills are being forced to pay more for the material, and continue to take material in despite sluggish market conditions.Latest from Recycling Today
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