Paper Commodity Report

Transportation woes and sluggish overall economic conditions continue to chip away at the recovered paper market. For much of the first part of 2008, the recovered paper market seemed somewhat impervious to the lackluster economy, with overseas demand driving record high prices, particularly for old corrugated containers (OCC).

However, prices slipped some in May and continued a slight downward trend into the middle of June as well.

"Things are a little weaker," says a Midwestern recycler. "OCC in particular has gotten sloppier and not quite as readily scheduled, and the same thing has occurred with some of the other grades."

A recycler based in the Southwest agrees that the market is somewhat cooler. "A lot of mills are getting full," he says, adding that some mills in the South have taken downtime from production to whittle down their inventories.

Sources also report less aggressive buying from China, which could further negatively affect the market.