RISI: future scarcity and quality issues for OCC

Global – Changing market dynamics will eventually limit availability of high-quality OCC at reasonable prices, according to new research from US-based RISI. ‘Market shares of containerboard grades with high recycled fibre content are expected to continue to rise over the next 15 years,’ it is explained. ‘Over the same period, virgin fibre content in the world containerboard sector will decline.’

Hannah Zhao, senior economist of global recovered paper at RISI and lead study author, elaborates: ‘According to our latest forecasts, OCC demand will continue to grow. The global OCC recovery rate will have to climb even higher to support additional capacity in the recycled containerboard segment. OCC availability, therefore, may become a significant issue again in the future – as we saw in 2011.’

Entitled ‘OCC/UKP Market Analysis and Outlook’, the study offers insight into which regions may see new virgin containerboard capacity in the future and also identifies regions that will compete with others in search of OCC supply.

Content also includes: history and 15-year forecast of global containerboard markets; capacity, production, demand and trade of containerboard in key world regions; OCC consumption, recovery, recovery rates, prices, global trade and quality issues; unbleached kraft pulp (UKP) consumption, trade and production in key world regions; existing UKP producers, capacity and constraints; and a cost comparison of OCC and UKP, plus breakeven points.