Paper Department

Most paper stock grades haven’t had a noticeable summer swoon, as demand from domestic and offshore sources has held markets together. Tight inventory levels throughout the North American paper industry have kept markets firm.

Reports from paper industry associations show that demand continues to improve, while inventory levels remain tight, leading to steadier buying patterns by domestic mills.

The Asian market continues to lurk in the background, especially China. With the much-publicized, new capacity continuing to ramp up, more domestic mills appear to be adopting a steadier buying pattern.

Old corrugated container prices remain steady, though they have eased back from earlier highs this year.

Mixed paper continues to be the grade to watch as mills in China snap up large blocks of this previously weak grade. While consistency always has been uncertain, the grade appears to be flowing much better, and the price has bounced up sharply throughout the past several quarters.

Concerned that some grades may be reaching their potential maximum recovery levels, more mills are looking to the mixed paper category to supplement their fiber finish. Whether this will be enough to meet the growing demand is yet to be determined.

Old newspaper pricing has been hardest hit. Despite strong orders offshore, continuing difficulties with the domestic newsprint industry have resulted in less-than-stellar markets. However, most vendors feel that the grade has been able to hold its own during the past several months.