U.S. Recovered Paper Prices Decline

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Recovered paper prices declined by $5 - $10 at U.S. mills for old corrugated containers (OCC), mixed paper, and coated groundwood materials, while holding flat on high grades and pulp substitutes, according to PPI Pulp & Paper Week prices published May 10 versus April 10 levels. The declines on a sequential basis stemmed from slower export demand especially in the U.S. South and Midwest to China and Mexico, as well as a variety of mill shutdowns at OCC- and groundwood-consuming mills.

Pulp & Paper Week noted that the declines, although slight sequentially, were big (about 25%), compared with 2011 average prices, which on most major grades were the highest ever, unadjusted for inflation. Compared with May 2011 pricing, OCC was down $25 this month, mixed paper was off almost $30, special news deink quality old newspapers (ONP) No. 8 was down $40, and office paper (OP) was off $100. OP this month