Paper Department

Paper Markets Continue Downward Slump

Paper stock markets have been showing some contradictions over the past several weeks. Most sources report some modest declines in price for old corrugated, old news and office pack grades. Despite the price drop, movement remains steady to strong. A number of vendors note that extra tonnage would readily be moved, despite the sinking prices. While there is an overall downward trend for most paper stock grades, not all are following the same circle.

Pulp substitutes have been one of the few grades showing some positive upward movement over the past several weeks. There appear to be signs of better market pulp prices, which is helping firm up grades such as shavings and cuttings. The improvement in the grade follows an extended period when the grade suffered from an overcapacity of pulp on the world market.

Strengthening prices for pulp subs, however, have yet to have any significant impact on deinking grades, as well as other types of paper stock.

Old corrugated container markets have been one of the biggest contradictions over the past month. There has been a finished product price increase that has allowed board producers, both liner and corrugated medium, to increase their run schedules. In fact, Weyerhaeuser reopened one of its previously idled machines at its Springfield, Ore., mill to take advantage of the better demand for the finished product.

On the East and West Coasts, slack export orders have had a negative effect on paper stock markets.