The price of waste paper in the United States began to recover, and the price in China continued to fall...
According to the Pulp and Paper Week Pricing Survey and Market Report released by Fastmarkets on July 6, the average price of waste paper in the United States rose for the fourth consecutive month in July. It is worth noting that the price trend of OCC (used cartons) and DLK (mixed waste paper) was maintained due to insufficient supply of bulk grade waste paper and firm factory demand. U.S. OCC pricing remained stable in most regions, but the price of FOB seller terminals in the Southwest region increased by $5/ton, and prices in the Los Angeles and San Francisco regions also increased by $5/ton. DLK pricing at FOB seller terminals in the same region also increased by $5/ton.
The southern U.S. was considered one of the strongest regions for paper mill demand this summer, especially in the Southwest, where increased demand from Mexican paper mills supported higher OCC pricing in the region, keeping prices flat compared to the Southeast, while OCC prices in the Southeast remained unchanged in July.
With the exception of a $5/t drop in FOB seller's terminal prices in the Pacific Northwest, mixed waste paper prices in the rest of the U.S. remained mostly unchanged. This was mainly due to lower mixed waste paper prices in the Pacific Northwest due to lower export orders for mixed waste paper.
According to the contact, papermill inventories remained stable in July in most parts of the United States, with the exception of the South, which received more waste paper supplies. Factory demand for OCC and DLK remains strong, especially as paper mills in the South are eager to find more raw materials.
In June and July of this year, new recycled paper machines were in operation at some paper mills, including Cascades, Domtar and ND Paper, further increasing demand for OCC. Meanwhile, in Henderson, Kentucky, Pratt Industries is preparing to launch their new machine on October 1, which has also prompted them to start looking for raw materials.
Despite a tight market, paper mills are facing a reduction in available supply after addressing supply chain issues caused by the epidemic. Transportation has improved, with freight and fuel surcharges falling this year compared to last year.
Meanwhile, in China, prices for most paper and paperboard varieties continued to fall throughout June amid a stagnant economic recovery and sluggish demand for packaging materials. The operation of factories affiliated with Chinese cardboard producers in South East Asia and the increase in imported cardboard volumes have led to an increase in overseas supply.
Overall, U.S. waste paper prices continued to rise, while Chinese cardboard prices fell. This reflects the different trends and economic conditions of the paper markets in the two countries.