Market2Mill, the recovered fiber price and mill benchmark reports created by Charlotte, N.C.-based Forest2Market, will begin reporting mixed paper prices and market trends.
Attorney James McGibbon, who paved the way for this product expansion with a favorable anti-trust opinion, says, “There is very little transparency in mixed paper pricing at present due to the lack of market reporting, and it seems quite possible that there are gross and unjustified discrepancies in prices of what are essentially commodity products.” He adds, “Improved pricing data to both sides in a competitive market should lead to more accurate pricing based on economic factors of supply and demand, thus improving market efficiency.”
Barbara Hudson, manager of Forest2Market’s recovered fiber practice, says the new product will benefit the industry. “Market2Mill provides a broad view of what is happening out there in the market,” she says. “Buyers and sellers of recovered fiber using price and market trend data from actual transactions occurring in the market make better-informed decisions. It’s as simple as that. With high quality market data on pricing and volume provided by Market2Mill, buyers and sellers of OCC (old corrugated containers), DLK (double-lined kraft cuttings) and now MP (mixed paper) can assess their performance against the market and develop forward-looking pricing strategies,” Hudson adds.
Launched in April 2011, Market2Mill is a transaction-based market pricing service for recovered fiber, offering monthly reports and quarterly mill benchmarks to buyers and sellers of recovered fiber grades. It reports volume-weighted average prices derived from actual orders and invoices submitted by subscribers.
Market2Mill has evolved during its first year. Initial Market2Mill reports contained market data about OCC and DLK. Since then, Market2Mill has split OCC reporting to include spot market and contract prices. Forest2Market says Market2Mill could begin reporting prices and market trends for mixed paper as soon as June 2012.
Forest2Market provides market pricing data and supply chain expertise to customers in the forest, wood products, pulp and paper, recovered fiber, lumber and bioenergy industries. More information is available at www.forest2market.com.
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