Cardboard Commodities Shift

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Insights

Cardboard Commodities Shift

 

The third quarter saw North America’s largest paper producers reporting record-high demand for recycled containerboard. With recycling demand on the rise, small businesses have a valuable opportunity to reduce costs and promote sustainability through recycling initiatives.

Several companies set new records in containerboard production to meet increased demand, driven by an uptick in box shipments. One company noted it still couldn’t meet inventory targets despite producing 1.3 million tons of containerboard. This sustained demand for recycled cardboard highlights an opportunity for small businesses to support eco-friendly packaging and reduce material costs.

While costs for old corrugated containers (OCC) were high this year, recent declines suggest lower expenses through the end of 2024. One paper company anticipates reduced OCC costs and adjusted contract prices, which could benefit small businesses by making recycling services and raw materials more affordable.

Upcoming facilities, such as a major new recycled paper mill in Texas, will further support North American supply by 2025. This is good news for small businesses, ensuring a steady flow of high-quality recycled paperboard for sustainable packaging needs.

International demand for recycled cardboard is growing, with global companies like Nine Dragons expanding recovered fiber usage and projecting increased production. Despite challenges like competitive imports and economic fluctuations, global recovery initiatives are expected to support sustainable cardboard recycling.

As demand for recycled cardboard strengthens, small businesses have a unique chance to contribute to a sustainable supply chain while managing costs. By staying engaged in recycling practices, businesses can help shape a more sustainable industry and improve their bottom line.