Paper

Low Grades Continue to Flourish

The hunger of markets for old corrugated containers, old news and mixed paper continues. Offshore mills, especially those to the Pacific Rim, are the big driving force for the demand. China, Indonesia and Thailand, and, to a lesser degree Taiwan and Korea, continue to be active for the grade.

Offshore prices for OCC have been moving up sharply over the past month, with some West Coast sources reporting prices moving up above the $140 per ton level. Some West Coast vendors add that OCC prices are going for as much as $180 per ton at the dock.

One area of difference is in the ability of exporters to obtain containers and bookings to ship material offshore. While last month there was some difficulty in landing bookings on many vessels, many exporters are now reporting having a much easier time getting containers of recovered fiber onboard container lines.

However, there are still several exporters who report that while bookings are improving, it remains difficult to book space, especially with more valuable material bumping recovered fiber from some vessels.

One positive factor is the relative inexpensive cost to ship freight. Prices have moved up due to higher fuel costs, although relatively speaking shipping costs are still much lower than they were several years ago.

(FibreMarketNews.com is an electronic publication covering the paper stock markets and paper recycling industry.)