Recyclers across the U.S. have noticed an uptick in demand for recovered paper. “Everyone is begging for more cardboard and mixed paper,” says a material recovery facility (MRF) operator based in the South. “It seems like mill inventories are low, and they are crying that they need this material. It’s why we saw an increase in prices month over month.” The MRF operator adds that demand for sorted office paper (SOP) is a little soft compared with demand for old corrugated containers (OCC) and mixed paper. He says, “Mills will take as much OCC and mixed as we can produce. Everyone is reaching out, trying to get paper where they can get it, and that’s why we’re seeing prices increase.”
During the Bureau of International Recycling’s (BIR’s) World Recycling Convention in early June, panelists during the Paper Division meeting talked about how export markets are very critical for recovered paper recyclers in Europe, but that shipping has been expensive in recent months.
Ranjit Baxi of U.K.-based J&H Sales International said freight costs have risen three to four times higher than they were 18 months ago. He said this has made the trading business “very, very difficult.” The pandemic likely has exacerbated freight shortages, Baxi said, adding that he suspects that freight-related issues could normalize by 2022 if pandemic-related concerns ease.
Source: Recycling Today
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