Board Converting News, August 23, 2021

Fastmarkets: OCC Prices Hit Four-Year High

Box Shipments ( U.S. Corrugated Product Shipments) Industry Shipments In Billions of Square Feet Month June 2021

For the third consecutive month, US recovered paper pric- ing has increased in every domestic region for all grades, according to industry pricing analysts at Fastmarkets. High demand and low supply shot up old corrugated container (OCC) pricing by $40 per ton at the FOB seller’s dock in the South. The August rise is the 10th month in a row for US OCC pricing hikes in North America. OCC’s national average, at $159 per ton at the FOB seller’s dock in August, is at its highest pricing point in four years. This month marks the seventh month in four years that OCC’s US average has surpassed $100 per ton, and the third month in a row since July’s $129 per ton and June’s $109 per ton. Average pricing for OCC in August has increased $30 per ton compared with July’s $129 per ton. It is up 174 per- cent compared to August 2020. While all U.S. mills contin- ue to have demand for bulk grades. According to Fastmar- kets sources, one of the largest consumers of recovered fiber sought tons off both US coasts for its mills in the US interior. This action competes with the export market to keep tons domestic. In addition to major U.S. mills seeking OCC tons, sourc- es said mills in Mexico were pulling tons from the US Mid- west via truck and paying premiums, up to $40 per ton.

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

35.963 34.395

4.6

8.173 7.817

4.6

Industry Total

Year-to Date

June 2021

Year

Actual

Percent Change Avg Week Percent Change

2021 2020

208.632 196.828

6.0

8.279 7.749

6.8

Industry Total

Containerboard Consumption (Thousands of Tons)

Year

Month

Percent Change Year-to-Date Percent Change

2021 2020

2.9450 2.8182

4.5

14.1095 13.3029

6.1

Container Board Inventory - Corrugator Plants (Thousands of Tons)

Corrugator Plants Only

Date

Percent Change Weeks of Supply

Percent Change

Jun. May

2.1046 1.9962

5.4

3.1 2.9

6.9

Shipping Days

Year

Month

Year-to-Date

2021 2020

22 22

126 127

SOURCE: Fibre Box Association

www.boardconvertingnews.com

6

August 23, 2021

Made with FlippingBook Annual report maker