OCC Prices Crash to Hit Lowest Level in 25 Years

SEATTLE (Scrap Monster): The prices of recovered fiber grades witnessed drastic decline over the previous month. The old corrugated container (OCC) prices recorded sharp month-on-month decline by 13%, thus falling to the lowest levels in over two decades.

The national average price for OCC plunged by 12.5% from $32 per ton in May this year to $28 per ton in June ’19. This is historically lower when compared with the average price levels of $67 per ton during the same month a year before. The OCC prices had peaked at $180 per ton in 2017.

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Also, the national average price for sorted residential papers dropped from $16 per ton in May to $14 per ton in June this year. This is almost half the average price of $29 per ton in June 2018. It must be noted that the prices had hit a peak of $79 per ton in June 2017. The average price levels of sorted office paper too have dropped significantly from $195 per ton in June 2018 to $122 per ton in June this year. Meantime, mixed paper continued to trade at negative $2 per ton, data from recycling centers said.

The markets for residential fiber recyclables have been hit hard by trade restrictions imposed by several countries across the world, mainly by China. Although China has not banned OCC imports, the strict controls on quality of imports have led to reduced exports by developed countries. With limited domestic recycling options available, the recycling facilities are piled up with huge stocks of the material, thereby resulting in continuous decline in prices.