Paper Department

Prices Hit the Brakes

The go-go days of earlier this summer for the old corrugated container (OCC) grade have been replaced with a fall season that is showing the retrenchment in the market many packers expected.

OCC prices have slipped, with some regions posting sharp price declines. Despite the decline, there are some mixed opinions about the short-term market for the grade. While a host of vendors expect to see further downward pressure for OCC moving into October, there is a growing opinion that there are some positive indicators that could help turn markets around.

One key driver for OCC is expected to be the pick-up in demand for the grade from offshore mills. As the price of OCC shot up this summer, some Asian mill buyers cut back their intake. The result has been the price decline. Domestic mills followed suit with price cuts.

However, there are indications that orders may soon pick up for shipments offshore. At the same time many paperboard mills in North America are running busier schedules, helping keep OCC price and demand in balance.

Other grades continue to move at a steady to strong clip throughout the country.