Offshore Markets Continue to Improve

The mood was upbeat at the 3^rd Annual Paper Recycling Conference & Trade Show, held June 23-25 in New Orleans.

In the hallways and meeting rooms, there was a fair amount of optimism as markets for a host of grades continued to post strong numbers.

While the prevailing tone was of confidence, a plethora of caution was also expressed. The possibility of a strike or slowdown at ports on the West Coast that could begin as soon as July 1, the strong run up in prices could result in a drop as quickly, and the continuing issue of quality of the paper.

In a session on markets outside North America. Jimmy Yang, with Bayside International, a paper stock operation in California that ships a significant amount of recovered fiber to China.

Yang noted that China’s growth is expected to far outpace other regions of the world. However, the increase will result in increased scrutiny for the shipments into the country.

Bob Tucker, in charge of paper stock shipments to the company’s mills in South Korea, noted domestic demand in Korea is expected to increase by around seven percent this year.

Despite the increase in demand, downtime in Korea is occurring. Tucker acknowledged that Bowater’s Halla mill in Korea is down due to labor problems. Additionally, he noted that Korea is reducing its intake of U.S. newsprint.

Discussing the Mexican market, Miguel Rincone, with Corporacion Durango, focused on the position his company is taking in the further development of the Latin American market. The company, already the largest forest products company in Mexico, expects to continue to grow its operations over the next several years.