Low OCC Prices Continue to Benefit U.S. Mills
Monday, August 27, 2018
Posted by: Alyce Ryan
As more Chinese import restrictions roll in, domestic mills continue to pay even less for recovered fiber. Meanwhile, some are looking at how they can supply Chinese buyers with finished product in the future.
Earlier this year, the top North American publicly traded recovered fiber end users estimated their benefits from China’s import restrictions would be temporary. They recently reported those benefits, such as lower feedstock costs, continued through the second quarter.
Most of the big players are also discussing potential strategies to supply Chinese producers with finished product made from recycled paper. China’s manufacturers are struggling.
“China’s got a dynamic economy,” said Mark Sutton, CEO of International Paper. “It’s going to need fiber in the long-term.”
In the short term, North American fiber buyers continue to pay less for feedstock – and for the most part, they anticipate that will carry on at least through the end of 2018.
Resource Recycling analyzed recent quarterly earnings calls from some of the largest publicly traded recovered fiber consumers in North America: Cascades, International Paper, Packaging Corporation of America, Resolute Forest Products, Sonoco and WestRock.
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