Demand for Most Recovered Fiber Grades Stood Strong

SEATTLE (Scrap Monster): The supply and demand for recovered paper markets remained more or less balanced during the first half of the current month, said sources. The demand for most grades stood strong into mid-April this year. The prices increased marginally in domestic market, unlike export markets which recorded robust price surge.

ALSO READ: U.S. Recovered Paper Exports Posted Uptrend in Early-2021

The strong demand reflected in the pricing. The markets for both OCC and mixed paper improved from the previous year, although markets for OCC outclassed those of mixed paper. Despite strong demand, the prices of mixed paper grade have not witnessed corresponding rise in the past two months. For instance, the prices of mixed paper have increased only by $45 per ton, as against OCC prices which have increased by almost $90 per ton.

The export prices of various grades of recovered paper jumped in the April buying period. The gap between domestic and export prices widened further, as reported by East Coast-based brokers. The disparity between domestic and export prices hit new historic highs, they noted.

The demand for high grades such as sorted office paper (SOP) continued to remain steady. However, tissue markets are yet to return to pre-Covid-19 levels yet.