ISRI Spotlight: Recovered Paper Prices Spiked in First Half of 2020

SEATTLE (Scrap Monster): The Institute of Scrap Recycling Industries (ISRI) Spotlight on Paper highlighted the shift in recovered paper demand due to Covid-19 pandemic. The drastic change in supply-demand situation led to spike in recovered paper prices during the first half of 2020.

The virtual event, moderated by Joe Pickard, chief economist and director of commodities at ISRI, had Jose Gonzalez, senior principal and Sanna Sosa, principal consultant at AFRY Management Consulting as speakers.

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The latest statistics published by the U.S. Bureau of Labor Statistics (BLS) indicates that the recovered paper prices surged higher by almost 50% in April this year, compared with the prior month. Upon comparison with the prior year, the prices are up by almost 40%. Despite high prices, the recovered paper exports are down by almost 14% so far this year. For instance, OCC exports and newsprint exports were down by 16.8% and 23% respectively in Q1 this year, compared with the same period a year before.

The event noted that Covid-19 is likely to have a dramatic impact on the pulp and paper sector in 2020. Meantime, the volatility for recovered paper prices is expected to continue for the rest of the year, especially in Q2 and Q3. The demand for tissue products is likely to report significant surge.