Government Shut Down & OCC

It’s unlikely that a government shutdown would have a major, direct impact on the OCC  or cardboard‑recycling business—at least not compared to forces like global market demand, export restrictions, or fiber pricing—but there could be some secondary effects. For example, a shutdown might slow down customs, trade, or regulatory functions (especially if import/export paperwork or environmental permits get delayed), which could complicate international shipments of recyclable fiber. Likewise, if federal contracts for government printing, packaging, or shipping are delayed, the demand for new cardboard and thus the recycling feedstock might shift short term. But by and large, the OCC supply chain is more sensitive to macroeconomic demand, export markets, and mill capacity than to temporary federal funding gaps.

The shutdown reduces federal spending, delays contracts, and constrains government purchases. That ripple can dampen downstream demand for packaging materials or corrugated board since federal agencies contract for printing, mail, shipping. In a tight market, even modest demand shifts can cascade to lower fiber/paper prices. Broader economic drag, less consumer spending, slower industrial output can reduce demand for boxes and packaging generally.