What is in store for July?

As we move into July we are continuing to notice some small, but definite improvements in the industry. Corrugated box shipments are improving ever so slightly, but improving. Paper mills will be taking a bit more down time in July, historically a month for vacations and change over for new products. Several of the larger paper mills continue to use up inventories and are now beginning to buy ever so slowly.

Our industry will recover, but it will take quite some time. Far too many supermarkets, communities and solid waste authorities have stopped much of their recycling efforts because the markets and consumption are simply not there at this time. My feeling is they should continue recycling, work to develop other alternative outlets for their products. It would be a real shame for so many to completely give up what took so long to develop without exploring every option.

We believe that once we get through July we may see a little better improvement in markets, but the jury remains out on that.

Lean, Mean, Fightin' Machine.

Ok, June has arrived, and with it we see higher pricing for most waste paper items. Actually, we see increases of anywhere from 5 to 30% price increases. Some of us may say markets are still too low, we can’t make money processing, etc. This may be true in a few cases, but frankly, an increase is an increase, and it is pointing to stronger demand from our consumers.

Sure, we have a long way to go for all of us to be happy, but wouldn’t you agree that 2008 was unrealistically priced too high for most consumers, and yes, November, 2008 the bottom fell out signaling a serious need for adjustments based on the economy, supply and demand. Maybe this is happening.

Many mills remain in trouble, with bankruptcies occurring every month. Most of the mills will come out leaner, and stronger than ever, and we as suppliers must do the same. Things will level out over the next many months. There isn’t an overnight fix, but we are heading in the right direction, and for this we may want to be positive, and more focused.