OCC under Pressure in U.S., Europe

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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