There may be a base being formed with some of the lower grades of recovered fiber. The old corrugated containers (OCC) grade is showing some modest signs of life. Prices look to be stabilizing in some regions. Several sources add that prices have even inched up in a couple parts of the country.
Mill prices are still far down from where they were last year, and statistical information still shows North American mills slashing production to bring supply and demand more into balance. However, there seem to be signs that more purchasing officials are looking to hold prices at their present level. There have been some concerns expressed earlier this year that a prolonged slump with rapidly falling prices could curtail new supplies.
The strength is happening despite some unsettling problems that continue to plague the industry. A strike at a number of Weyerhaeuser mills in the Northwest is creating problems for some packers in the Northwest. High energy costs on the West Coast also are resulting in difficulties for other paperboard mills, with reports that Inland Paperboard will be shuttering its California mill for a month.
Some exporters are holding out hope that Chinese buyers will come into the market in a larger way.
(FibreMarketNews.com is an electronic publication covering the paperstock markets and paper recycling industry.)