As we know, the U.S. stock market has been exceptionally strong; however, the global paper economy has not been robust. While the Away-from-Home paper demand in the U.S. has been very steady, the rest of the world has been flat or down. Q2 volumes in the U.S. had seen its challenges due to record rainfall however Q3 rebounded quite nicely. The bottom line, the waste paper market will continue to be depressed for the balance of 2019 and into 2020.
The Impact of Waste Paper on Paper Converting Companies
The world of waste paper has been a wild ride throughout 2019. Pricing for all grades has fallen dramatically throughout the year. This has negatively impacted waste paper recyclers and dealers. Many recycling plants have closed their doors or diverted their energies toward new opportunities.
Why does the quality of waste paper matter? This downward spiraling of quality for many white grades of waste paper effects quality throughout the supply chain for recycled tissue, towel and napkin grades. It brings more contaminants, more dirt/ink, poor formation, less strength and a myriad of challenges to producing and converting paper products.
Again, all of this presents challenges for parent roll quality- especially for manufacturers of 100% recycled towel, tissue and napkin products. Hang in there! Quality will improve.
Pricing for brown or kraft waste paper grades has been at a 25-year low and has seen similar challenges.
Written by President/Owner Joe Raccuia