Recovered Paper Prices Show Signs of Rebound

Why It Matters

Rising OCC and recycled board prices signal a recovering recycling market, raising costs for packaging manufacturers and influencing waste‑management profitability.

Key Takeaways

• OCC prices up $1‑$5 per ton in early March.
• Sonoco adds $70 per ton to uncoated recycled board.
• Mill utilization and inflation drive price hikes.
• Rebound follows 2025 decline; bottomed November.
• Waste firms forecast continued OCC price improvement.

Pulse Analysis

The recent uptick in old corrugated container (OCC) prices reflects a confluence of supply‑side pressures that have begun to ease after a prolonged slump. Fastmarkets RISI noted that February’s seasonally reduced paper generation, coupled with winter‑induced transportation bottlenecks, limited material flow into recycling streams. These constraints lifted market tightness, allowing OCC values to climb $1‑$5 per ton in early March— the second consecutive month of gains. Analysts view this as a tentative bottoming of prices that began in November, offering relief to collectors and shippers who faced margin compression throughout 2025.

Sonoco Products’ decision to raise uncoated recycled paperboard (URB) prices by $70 per ton and to apply an 8% increase to converted board items underscores how producers are passing higher input costs onto downstream customers. The company cites tighter market conditions, elevated mill utilization rates, and broader inflationary pressures as justification. For packaging manufacturers, these adjustments translate into higher material expenses, prompting a reassessment of cost structures, potential price pass‑through to end‑users, and accelerated evaluation of alternative substrates or design efficiencies.

Looking ahead, waste‑management firms such as WM Inc. and Casella Waste Systems are incorporating expectations of continued OCC price improvement into their guidance, suggesting a more optimistic outlook for the recycling sector. A sustained price rebound could incentivize greater collection efforts, improve recycler profitability, and support broader sustainability goals. However, the trajectory remains sensitive to seasonal generation patterns, logistical disruptions, and macro‑economic inflation trends, making close monitoring essential for stakeholders across the paperboard supply chain.