Recovered Fibre, China

Demand for scrap paper from China is fairly stable right now. News and cardboard have maintained fairly strong pricing for the last few months. Summer months typically mean lower generation, so we expect supply will fall off a little bit. We don’t see that putting too much pressure on pricing because the current pricing is already at historical highs. Domestic and foreign mills are complaining about the high cost of raw material. However, the drop in supply will also keep the price from falling in the summer months.

The freight outlook for this summer is very positive, with ocean carriers bringing in more capacity this year in anticipation of a strong peak season. We are expecting adequate equipment in major ports.

Susan Choi can be contacted at SusanChoi@acni.net