US recovered paper prices, demand stable throughout January as large containerboard producers stock up on OCC

Stability has held throughout January for US recovered fiber prices and demand as buyers stocked up on tons ahead of February’s expected generation drop-off, buyers and sellers told Fastmarkets this week.

Sellers said demand for tons is steady and prices held firm throughout January.

Raw material inventories have increased in recent weeks, especially for old corrugated containers (OCC), and major containerboard producers said they have “healthy” inventories, as one large mill source in the Midwest said on Thursday January 22.

Another large containerboard producer said on Thursday that the mill group’s raw material inventories are “heavy” and another major containerboard producer said on the same day, “All our inventories are at optimal levels, or higher.”

“We have not seen any decrease in tons over January from our accounts, the mills are running full out and we have very healthy inventories,” the large Midwest mill source said.

Firm prices since the first week of the month have held for brown bulk grades, groundwood, high deinking grades and pulp substitutes, sources said this week. Fastmarkets reported on January 5 unchanged prices for almost all domestic recovered paper grades, except for a $5 per short ton rise in the Los Angeles and San Francisco regions for OCC and new double-lined kraft corrugated cuttings (DLK).

Premiums for OCC held steady too, sources said. In the Midwest, a producer this week said they paid a $15 premium for OCC.

Winter weather watch

Tons have been easier to move in January compared with December, sources said this week. In December, winter weather conditions and holiday schedules that reduced driver availability slowed trades. While market participants have secured tons more easily in recent weeks, this weekend’s weather forecast warning of a major snowstorm blanketing the US South and East is top of mind, sources said.

In the East, a producer source is hopeful that “the upcoming storm this weekend won’t be as bad as the last one.” A snowstorm in December closed roads and stalled material movement.

“The weather I’m sure will be a big impact for some groups over the next few days,” a producer source said on Thursday.

Another producer source said the winter weather this weekend could potentially “help us get our inventories down a little bit, which we need.”

Mills this week said their paper machines (PMs) are running without downtime. There is less downtime in January compared with downtime in the fourth quarter of 2025.

Seller sources said this week that demand for recovered paper is good, as is supply generation in January.

Export demand

Consistent demand from Southeast Asia for export US OCC, both No11 OCC and No12 double-sorted OCC (DSOCC), increased prices by about $10 per short ton FAS, sources said on Thursday. To Southeast Asia, one seller out of the New York/New Jersey ports said No11 OCC topped $127-130 per short ton FAS.

No11 OCC prices topped $118 per short ton FAS out of the New York/New Jersey ports, according to Fastmarkets’ January 5 pricing survey and market report.

Improved demand from India for white deinking grades, notably sorted office paper, increased prices by $5 per short ton FAS this week to $185 per short ton FAS out of the New York/New Jersey ports, sources said.

“So far this month, the piers have been great,” the seller source said. “[We’ve had] good bookings and easy shipping. As we produce loads, they are shipped out.”

Sources again this week reiterated their expectations of price rises for domestic OCC in the coming months.

National average pricing for US OCC increased by $1 per short ton in January from the prior month to $45 per short ton. Producer and supplier sources expect price rises for the bulk grade by the end of the first quarter or start of the second quarter.

“I am still expecting an uptick [in OCC pricing] in the spring, but right now there is a lot of supply available,” a producer source said on Thursday.

• Hartmann North America this week announced plans to expand capacity at its North American plants through 2027 to meet what it said is “rising demand for recyclable and compostable molded fiber packaging.” While the company did not provide specifics, when combined with a major expansion project that launched in 2024 to add multiple production lines and warehouse facilities across the US and Canada, these investments over three years represent more than $100 million in North American operations from 2024 through 2027. “These significant investments underscore our commitment to the North American market and our global leadership in pulp egg packaging,” chief executive officer of Hartmann Packaging Torben Rosenkrantz-Theil said. Fastmarkets reported in September 2024 that Hartmann North America was to add production lines at its molded fiber egg packaging mills in Rolla, Missouri and Brantford, Ontario, as well as more warehouse and building space. Hartmann started up the Rolla mill in 2016. Both mills run on 100% recovered paper furnish.
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