The focus on the recovered paper (RCP) or scrap paper sector began fall of last year with rising prices of old corrugated container (OCC)- familiar to most as cardboard. OCC price hikes caused a butterfly effect of rising prices across most grades of scrap paper, including old newspaper (ONP) and mixed paper. Here's a general breakdown of the progression:
- Chinese scrap paper supplies are limited in part by government restrictions, raising the price of domestic RCP, beginning with recycled cardboard.
- Chinese packaging producers turn to outside markets to meet stock requirements in preparation for the Lunar New Year celebrations.
- In response to increasing demand for exports and high Chinese scrap paper prices, international suppliers implement their own material price hikes.
- Though Chinese mills close or slow production as workers return to their hometowns to join in the holiday festivities, suppliers maintain high scrap paper prices for most grades in anticipation of vigorous post-holiday restocks.
- Buyers adopt a wait-and-see approach, saying they do not mind paying high prices as long as the high value of packaging products are maintained.
Berg Mill Supply provides information on recyclable material market trends to help waste generators:
- Gauge the highest value for their recycled materials based on global pricing trends.
- Predict demand for recyclables based on market analysis.