Fiber Giants Don’t Expect Recycled Paper Price Movement
Monday, September 9, 2019
Posted by: Alyce Ryan
Executives from paper manufacturers that consume major tonnages of OCC and mixed paper recently offered their thoughts on where the recycled-material market is headed.
During a recent earnings call, packaging and recycling giant Sonoco saw OCC prices averaging $42 per ton during the second quarter of the year, down from $82 per ton in the second quarter of 2018. Packaging and tissue producer Cascades reported OCC prices at $35 per ton, which is down 44% year over year.
“At that price level we don’t expect, obviously, any other significant price decrease,” said Luc Langevin, chief operating officer for Cascades’ Specialty Products Group, on the company’s Aug. 9 earnings call. “But on the other hand, we don’t expect, either, any significant price increase in the next few months.”
Currently, OCC and mixed paper pricing is at low levels not seen in decades, and OCC prices have dropped each month this year. As of mid-August, the U.S. average OCC price was $28 per ton, according to RecyclingMarkets.net.
Many recovered fiber end users have benefited from the lower prices for a key feedstock.
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