Is the World about to Run Out of OCC?
March 10, 2016
Tedd Powers, Senior Consultant, Fisher International
For many years, industry experts have predicted a looming shortage of OCC (old corrugated containers). Since OCC is the primary source of fiber for recycled containerboard, such a shortage would be disruptive to the global market.
There are a number of misconceptions and misunderstandings about how the OCC market works and, therefore, how it will behave in the future. Among them, the idea that collection rates are at their practical limits and that OCC fiber can only be used 7 or 8 times before it degrades.
Is the world running out of OCC? The answer has more nuances than many people believe. The talk shows what the data has to say about the future of OCC.