Recovered paper prices on the rise
by Brian R. Hook 
Recovered paper prices are increasing,
but prices are often volatile.
“We have noticed increases over
the past several months,” said Steve Grossman, president
of The Grossman Group Inc. The Westerville, Ohio-based broker
of waste paper also operates a fiber separation recycling
facility in Columbus, Ohio.
Grossman said he expects scrap paper prices
to increase further. “When pricing is very low, as
many of us have seen over the years, there really isn’t
enough of a spread to make even a decent profit, cover collection
cost, market properly, etc.,” Grossman said.
“Pricing does not have to skyrocket
in order for everyone to make a profit.”
Scrap paper prices are on the rise, but
not by the same magnitude as other scrap materials, said
Tom Runiewicz, an economist for Global Insight in Philadelphia.
Scrap steel is about twice the value of
scrap paper, Runiewicz said. “Metals, because of high
value per ton, have always been a lot more attractive to
recycle.”
The price for old newsprint was approximately
$80 a ton in 2002, Runiewicz said. Last year the price increased
to about $110 a ton. This year the price is slightly below
$100 a ton. The price for old corrugated containers was
$88 a ton in 2002 and increased to a peak of $115 a ton
a year ago. This year the price is back below $95 a ton.
“While both domestic and export
demand for scrap have grown tremendously, the supply chain
and collection facilities have also improved quite a bit,”
Runiewicz said.
“Previous supply constraints with
scrap paper have not been due to the lack of availability
of scrap paper and boxes. The United States is a tremendous
producer of waste.” ...read
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