Transacted Paper Stock Prices – Low Grades

Mixed Paper ( 2)

Boxboard
Cuttings
( 4)

News ( 6)

News ( 8)

OCC (11)

SOP (37)

Sorted White Ledger (40)

Chicago

$55–60 (0) 80–85 (0)

35–40 (0)

70–75 (0)

95–105 (0)

210–220 (0) 320–330 (+ 15)

New England

55–60 (+ 15) 70–75 (0)

35–40 (0) 80–85 (+ 10) 110–120 (+ 10) 210–220 (0) 320–330 (+ 15)

Buffalo

40–45 (+ 15) 70–75 (0)

35–40 (0) 55–60 (+ 10) 110-120 (+ 10) 210–220 (0) 320–330 (+ 15)

New York

55–60 (+ 15) 70–75 (0)

35–40 (0) 80–85 (+ 10) 110–120 (+ 10) 210–220 (0) 320–330 (+ 15)

Southeast

75-80 (0) 70–75 (0)

35–40 (0) 75–80 (- 10) 120–130 (+ 10) 210–220 (0) 320–330 (+ 15)

Southwest

80–85 (0) 70–75 (0)

35–40 (0) 75–80 (- 10) 115–125 (0) 210–220 (0) 320–330 (+ 15)

Los Angeles

95–105 (+ 10) 120–130 (+ 10) 95–105 (0) 110–120 (0) 125–135 (+ 20) 215–225 (0) 310–320 (+ 15)

San Francisco

70–75 (0) 120–130 (+ 10) 95–105 (0) 110–120 (0) 115–125 (+ 20) 215–225 (0) 310–320 (+ 15)

Pacific NW

90–95 (+ 10) 120–130 (+ 10) 65–70 (0)

85–90 (0)

100–110 (+ 5) 200–210 (0)

Source: Official Board Markets

For up-to-date commentary on recovered paper prices,
listen to The Bottom Line podcast at www.TheBottomLinePodcast.net.

Prices are per short ton. They change the first issue of each month. Unless otherwise noted, they’re effective for the calendar month. Grades and preparation requirements are as defined in the current ISRI Scrap Specifications Circular (now PS-08); grade numbers appear in parentheses. These are board and paper mill purchase prices, baled, F. O. B. seller’s dock, exclusive of delivery charges, and of premium or distress lots, and of all subsequent charges for packing, handling, less-than-full-load freight, destination considerations, or other special charges. The prices listed are for reference only, and do not connote any commitment by any supplier to sell, nor by any purchaser to buy, any material at the price listed or at any price predicated upon the price listed.

310–320 (+ 15)

MARKET REPORT

OCC Export Activity Explodes

In recent days China’s demand for OCC has exploded. It is fueled in part by easy availability of shipping containers and falling rates. Suppliers are starting to take orders going export for immediate shipments. However temporary, the next few weeks could produce a serious battle for available tons.

Los Angeles is seeing the brunt of this activity. At least for now. That’s because containerboard sales in China are strong. September will probably be the peak manufacturing month in China. Containerboard mills there are running strong and so their thirst for OCC and mixed paper is hard to quench. Couple that with slow generation in the U.S. and you have rising prices that test the will of domestic OCC mill buyers to hold the line.

Los Angeles Prices (per ton)

$85

Sept. ‘06

$130

Sept. ‘08

$135

Current

The U.S. unemployment rate (currently 9. 5 percent) impacts generation simply because there are tens of thousands of people who have seen their unemployment benefits run out. They’re not buying any more than they need to to survive. This sad situation translates into fewer corrugated boxes available for recycling.

This isn’t to say that
all U.S. board mills are
scrambling for OCC tons
right now. A few have
done an excellent job of building inventories for times like
these. They can sit back and watch their peers fight for

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