Waste Paper Exporters In Australia – National average of $128 per ton OCC up 60% in one year Export demand leads recovery in all North American paper prices
Recovered paper prices rose for most grades in March in North America as domestic and export mill demand outstripped supply, forcing mills to look to other grades to fill orders and further tightening the market. Average US prices for all fiber recovered in March were well above last year’s levels and also increased month-over-month in March from February for all grades.
Waste Paper Exporters In Australia
The hot premium deinking market did not subside until March, and prices for white grades rose back into double digits after February’s $10-$20 per ton increase, according to the March 4 PPI Pulp & Paper Week market report » and price research. .
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On the other hand, maintenance downtime is planned this month for two of the largest US container plate manufacturers, primarily in the US South and one in the Northeast, the contact told P&PW.
Downtime in the Southeast for International Paper (IP) and WestRock added to the region’s softness, contacts said, and prices for US old corrugated container (OCC) fell $5 a tonne on the FOB seller dock on March at $145-155 per tonne at seller’s dock PANTS POCKET. OCC prices in the Southeast also fell in February by $5 per ton. Both IP and WestRock announced in their recent earnings calls that they have scheduled maintenance outages in the first quarter, with WestRock saying it will be about 150,000 tons of downtime.
Thrifty for Southeast, OCC premium held in March at $25-$40 per ton, according to buyers and sellers.
At $128 per tonne, the OCC average is up 60%, or $48 per tonne, in one year compared to the March 2021 US average of $80 per tonne.
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OCC’s steady movement in the Northeast, Southwest, and Midwest limits prices for bulk grades in those regions. Although major recycled containerboard maker WestRock Solvay will shut down this month for at least a week, possibly two, and slow OCC purchases, contacts said export demand in the Northeast and demand for other plants in the region are holding prices down OCC on time. March. In the Northeast, prices for OCC in March were $135-145 per ton.
In the Pacific Northwest (PNW), contacts said factory demand added another $5/t at FOB seller docks to the OCC price, pushing it to $95-105/t. The plant is doing well in the PNW and is looking for tons with growing demand.
Prices for OCC also increased by $5 per ton in the Los Angeles and San Francisco areas, with OCC export prices increasing in those two areas as well.
In the Midwest, several contacts said Graphic Packaging increased demand for OCC in March because the plant had expanded faster than expected. Graphic started its new 500,000 ton/year K2 treated recycled board (CRB) facility in Kalamazoo, MI, the first week of February, and is operating at 1,000 ton/day. Some contacts said Graph was expected to reach 1,000 tonnes per day in June, but it was already the first week of March.
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Chart Hand was strongest in the Midwest this month, according to sellers, but factories maintained month-over-month prices and prices held in the region. OCC prices were at $150-160 per ton in the Midwest in March. The mill company continues to operate the Battle Creek, MI, CRB plant, which is scheduled to close this summer, and will continue to operate the Middletown, OH, CRB plant.
Bulk values rose $15 per ton from New York/New Jersey ports, resulting in OCC No. 11 to a high of $230 per tonne FAS, No. 12 double grade OCC (DSOCC) at $240 per ton FAS and new double coated corrugated kraft (DLK) at $275 per ton FAS. Mixed paper rose $10 per ton to $155 per ton FAS.
Off the East Coast, sellers say they have monthly deliveries to India, South Korea, Taiwan, Vietnam, Thailand, Malaysia and Indonesia. Malaysia and Vietnam banned mixed paper this year, and some sellers said there was some confusion about shipping to Malaysia as the country was aware of the new inspection rules it had to apply, mirroring Indonesia’s rules, which require broken parcels and additional steps to go through the process before shipping. . This extra process adds a premium to the trade, the major exporter said.
“Malaysia … (is) calculating the entire inspection process,” a major West Coast vendor said this week. “(You’re) less likely to get rejected at OCC, so people start there.”
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Several contacts predicted that the paper blend ban could lead to an increase in OCC purchases in Vietnam and Malaysia. Last year, Malaysia joined the list of top 10 recovered fiber exporters to the US, importing 773,784 tonnes of US recovered paper in 2021, nearly 90%, or 694,560 tonnes of OCC.
West Coast prices also rose, with bulk grades up $10 a ton from Los Angeles/Long Beach ports, adding to the number. 11 OCC at a high of $195/t FAS, DSOCC at $205/t FAS and DLK at $210/t FAS.
Mixed Paper and Newspapers and Housing News Classified No. 56 (SRPN) also rose in the most demanded exports in March. From Port New York/New Jersey, mixed paper rose $5/t to a higher $155/t and SRPN rose $15/t to a higher $160/t FAS. Off the West Coast from Los Angeles/Long Beach ports, prices rose $5/t for blend to the high side of $95/t FAS and $5/t for SRPN to the high side of $125/t .
On the domestic front, SRPN rose $5-10 per ton at FOB seller docks in every US region, except for the hold in the PNW where contacts reported no movement in SRPN or mixed paper prices this month.
Australia Waste Export
At an average of $98/tonne US, SRPN prices have more than doubled in one year from an average of $48/tonne a year ago in March 2021.
Blended paper prices, averaging $69 per US ton in March, also more than doubled in a year from an average of $32 per ton in March 2021. Blends prices in March held steady in the Midwest, South and PNW and rose by $5 per ton at FOB vending docks in the Northeast and Los Angeles and San Francisco areas.
The price and demand for SRPN is increasing because some mills that cannot process mixed paper can use SRPN as a supplement.
He continued, “They need certain qualities, and when the 56th generation keeps falling, they panic and lose their minds. We can’t find enough.”
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Kate O’Neill does not work for, consult with, own stock in, or receive funding from any company or organization that would benefit from this article, and she does not disclose any relevant relationships outside of their academic designation.
Less than two years after China banned most imports of used materials from abroad, many of its neighbors have followed suit. On 28 May 2019, Malaysia’s environment minister announced that the country was sending 3,000 metric tons of contaminated plastic waste back to their countries of origin, including the United States, Canada, Australia and the United Kingdom. Along with the Philippines, which is sending 2,400 tonnes of illegally exported waste back to Canada, Malaysia’s stance underscores how controversial the global trade in plastic waste is.
Malaysia, Thailand and Vietnam have stopped the flow of plastic that once entered China but was diverted elsewhere after China began denying it. They have the support of many countries dealing with waste disposal and marine plastic pollution. At a meeting in Geneva in May 2019, 186 countries agreed to dramatically limit international trade in used plastic to prevent plastic dumping.
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As I point out in my forthcoming book, Garbage, all kinds of scrap materials are both a source and a threat. The new restrictions on plastics allow less wealthy countries to exercise their sovereign right not to accept materials they are unwilling to handle.
