Paper

All indicators point to only a minimal uptick in most paper stock grades through the first half of the year. In fact, some of the optimism is couched in terms such as “It can’t get much worse.” Not necessarily a ringing endorsement for an improving market.

High grades, especially pulp substitutes, continue their steep decline in price and demand. The oversupply of market pulp has resulted in a number of producers slashing prices, while some pulping operations are cutting production to balance supply with demand.

As pulp prices drop, grades such as hard white envelopes, shavings, and cuttings have seen prices plummet, with some handlers of the grade saying demand is following the descent.

The downward trend in pulp substitutes is also being felt for many de-inking grades such as sorted white ledger. This grade is following declining pulp substitute prices, while running into slowing Asian orders and uncertainty over the status of some domestic consumers.

Reflecting this trend, prices have dropped to levels that make it a difficult grade to process.

The low grades market is showing some slightly better market conditions. Old corrugated containers (OCC) appear to be moving at a steady clip, although prices aren’t showing much upward movement.

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