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Thought I would let you all know what is going on with the recovered paper market as it tends to be a sign of how the upcoming holiday season's retailers and suppliers will do.
The most traded form of recovered paper is OCC #11 (cardboard). It has fallen off a cliff and lost about 30-40% (depending on the region) of its traded value from the month of September. The lowest grade of recovered paper Mixed Paper #2 lost almost 50% of it's export value.
This is all based on the Chinese flexing their muscles and attempting to correct the market in their favor. They have completely stopped purchasing US recycled paper and have no intentions of starting back up until they feel as if they have hurt the markets enough to get the prices they want.
Look for the Major Publicly traded Paper companies and Waste haulers to take a HUGE hit in the 4th qtr. On that same token, it also means companies like Georgia Pacific can purchase their mixed paper for next to nothing to turn into low grade products like toilet paper and disposal hand towels.
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