Paper

The pleasant weather in Chicago late last month during the Paper Recycling Conference & Trade Show was unable to clear up the gloomy weather forecast many in the paper recycling industry are conveying in the short term for the hard-hit markets.

The continued problems being seen throughout the recovered paper industry, many feel, will last for most, if not all of this year. Even the most optimistic sources feel that at best prices for some bulk grades may see a very modest increase in price by the end of this year.

For handlers of old corrugated containers (OCC), even a $5 per ton increase will bring a mill price far less than what these same recyclers were receiving earlier this year. And, with downtime continuing to sweep across the country, there are some real possibilities that OCC prices could continue to trend downward.

“I don’t see anything on the horizon that would change my opinion about the market,” one California-based paper stock operator noted. “With all the problems mills are having now, it is surprising that movement is this good.”

Far from having an upbeat tone, most paper stock dealers handling the bulk grade feel that movement, while improving a bit, is still sluggish.

Most paper stock dealers are seeing even bigger problems for many of the higher-end grades. Prices have been steadily declining. Over the past several months, prices for sorted white ledger, office pack, de-inking grades, pulp substitutes and other white paper grades have seen mill prices plummet.