OCC Prices dropped again – the nose dive crash

OCC prices dropped again

Image source: eWorldTrade

OCC (old corrugated containers) introduced in 2019 at an estimated price level of $70 per ton in January have experienced a gradual price decline to $25 per ton by July, with the U.S. average price even oscillating on that pitch since OCC prices dropped again over a year of poor economic conditions.

National average jitters

  • The OCC prices dropped again from $75 per ton previous month to the recent national average of $55 per ton for PS 11 while the OCC appraisal price was at around $27 in the preceding year.
  • In February, when the North American industry sensed Covid-19, the price of the OCC took-off to $107 per ton in May. And thereafter, OCC prices dropped again to 30% in June. But this month it dropped to 27%. The different Paper categories under impact are:
  • Sorted residential paper (PS 56):  price-rise by 18% on average from $27 per ton steadily for the past month at $23 per ton.
  • Mixed paper (PS 54): presently stands at an average national price of $11 per ton, while it was $12 per ton last month.
  • Sorted office paper (PS 37): This month is nose-dived again. The current trade level is $139 per ton, while it being $150 per ton in the previous month. Yet it’s also better than that of the amount of $109 it was leveling 12 months ago.

Dwindling far-off paper materials

  • The baled aluminum cans this month have the national average price at 39.19 cents per pound, while it being at 55.38 cents per pound in the preceding year. Sorted baled steel cans slightly decreased to $79.25 per ton national average compared to an average of $81.75 per ton last month and $141.88 per ton in the preceding year.
  • The average national price of PET beverage bottles and jars slipped by 2%. Presently the price is 7.13 per-pound while it was 7.27 per pound in the previous month and at a stout level of 15.03 cents per pound in the preceding year.
  • The average national price for natural high-density polyethylene (HDPE) from the curbside collection is still constant with a present average of 36.50 cents per-pound versus 20.47 cents in the preceding year.
  • Presently, the national average color HDPE price moved to 3.71 cents per pound, similar to 3.68 cents per pound last month this time and 11.28 cents per pound a year earlier.
  • The national average polypropylene (PP) price is constant this month at 3.69 cents a pound versus 12.44 cents per pound in the preceding year.
  • Grade A film and Grade C film remained constant at 7.00 cents per pound and 1.38 cents per pound respectively, while Grade B film dropped slightly from 4.00 cents per pound to 3.81 cents, compared to 4.31 cents a year back.

Conclusion

Though the regular variation in magnitude or position of OCC prices could be a cause of worry it seems paper industry still has axiomatic hopes in winning the race – slowly and steadily.

Read this article also: OCC Price goes up as OCC Supply shortfalls amid COVID-19

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