OCC Forecast Available

A multi-client report prepared by Moore & Associates, Atlanta, offers a forecast on where prices for old corrugated containers (OCC) will head between now and 2007.

The Fore$ight report looks at industry fundamentals affecting supply of and demand for the bellwether paperstock grade both domestically and overseas.

Among the trends the study sees affecting the price in this timeframe is a lack of new machine capacity in North America, although some manufacturers may boost their capacity through “existing optimization projects,” according to the report.

Another factor that will have an effect is the industry’s expanding use of mixed paper and other substitute or “extender” grades. This is a practice that can keep OCC pricing suppressed, according to Moore & Associates and its president, William P. Moore.

In terms of factors that could conceivably push prices upward, continued demand from mills in China could well provide the demand boost needed to keep OCC prices at a healthy level. “Asian demand for U.S. recovered paper (particularly OCC) has been growing rapidly and will continue,” writes Moore.

Moore will be moderating the keynote session at the Paper Recycling Conference and Trade Show in Chicago June 22-24. Moore & Associates will also be exhibiting at the Trade Show portion of the conference.

More details on the Fore$ight report as well as contact information to order the report can be found at www.MARecycle.com.