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OCC under Pressure in U.S., Europe

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OCC (old corrugated container) is under pressure in the U.S. and Europe, reports Mark Wilde, senior analyst with Deutsche Bank. He points out that Official Board Markets reported a ˜$10/ton drop (to ˜$125/ton) in most parts of the U.S., adding that Smurfit Kappa noted a EUR 15/metric ton drop in European OCC export to China.

"Falling inputs could increase the ‘degree of difficulty' around a summer containerboard price hike. In the near-term, the biggest issue price-wise is the extent of Q2 inventory reductions," Wilde says.


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