Paper

The OCC market could be summed up with the simple phrase “look out below.” OCC, already sliding during the past few months, is expected to post some extreme drops in many parts of the country. There is expected to be some significant pounding of prices downward, with very little short-term optimism for the grade.

Downtime has been prevalent, with Weyerhaeuser taking significant downtime across its mill operations. Other mills also have been extending scheduled downtime far past their originally planned shutdowns.

Several sources note Weyerhaeuser will be taking around 40,000 tons of downtime that will curb any demands from many regions. In the Midwest there are indications prices may drop by $30-$40 per ton, a tough drop for a grade that has been suffering as of late.

Downtime continues to be a problem for OCC suppliers. Several sources note Weyerhaeuser will be taking 45,000 to 60,000 tons of production off line, furthering downward pressure on the grade.

If August OCC prices decline as steeply, there is concern some tonnage could be redirected away from collection and toward landfilling.

Along with widespread downtime throughout the country, especially the Midwest, the Chinese market has stepped out of the market for the grade, and there are reports that the Nine Dragons mill is having some equipment problems.

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