Our valued customers and suppliers:

Just as temperatures are dipping, so is global demand for recovered fiber. As we’ve been reporting to you this year, mills are overloaded, demand has dwindled, and pricing is down. In fact, we’re in for an especially frigid export and domestic season, continuing the months-long trend where moving product is a much higher priority than price.

Here’s the latest news we’re observing from the markets.

Decreased Demand in Foreign Markets

With China’s demand maxed out for the year, we’ve started to see massive declines in demand from alternative markets, including India, Indonesia and Mexico. Prices are down in these markets, as well: With fewer mixed paper shipments to India and Indonesia, pricing declined by $5-7/ton after strong demand earlier this year.

Decreased Demand and Pricing for Product

  • Old corrugated cardboard (OCC) No. 12 declined by $25/ton FAS on both coasts, with some grocery tons selling at OCC No. 11 levels.
  • Domestic OCC prices now average $25/ton (in November 2008, the bulk-grade OCC averaged $30/ton).
  • Sorted office paper (SOP) pricing fell for the ninth month this year, by $5/ton.
  • Premiums have dipped for OCC and SOP, with SOP premiums dropping to $10-15/ton.
  • Sorted white ledger (SWL) is in oversupply without much demand. Prices fell $10/ton across the country.

As always, despite these challenges, we remain committed to providing you with the best pricing and service possible. If you have any questions or would like to discuss how these market conditions affect your business, please reach out.


Barry Froman
Recycle 1 Companies