March Markets

So much for domestic or export markets leveling off, or even slowing down. March markets came out with prices reflecting supply and demand exceeding the pre recession prices. Cardboard and certain other types of paper for recycling shot up $30.00—37.00/ton.

What does all this mean? It means that the lack of consumer spending trickles down to the lack of scrap cardboard and other grades, and the demand by off shore markets, and certainly some domestic mills is causing this huge uptick. It appears that the domestic markets are stronger than the export markets, actually causing these off shore buyers to raise their prices to keep up with our demand. Let’s not forget the weather, especially in the East and South, more than hampering harvesting trees for their fiber.

So, let’s hope that spring weather is conducive to tress harvesting, supply becomes a bit more available, and things get back in balance. If not, I fear that when the markets cool, these astronomical prices could tumble in a bit of a free fall.