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COMMODITIES CORNER

Key Secondary Material2nd QTR3rd QTRPercentage IncreaseIndicators*(Average)(July Market)(Since 2nd QTR)...


Key Secondary Material 2nd QTR 3rd QTR Percentage Increase
Indicators* (Average) (July Market) (Since 2nd QTR)
(CDN $/metric tonne)
OCC 11 — baled $99 $200 102%
Residential (soft) mix — baled $51 $96 88%
ONP 8 — baled $90 $101 12%

In the third quarter of 2002 the catchword is fibre. Recent drastic upswing trends in fibre market prices have caused the impressive second quarter PET increases to pale in comparison. At the forefront of the trend is OCC, which moved from an average price of $99 per metric tonne during the second quarter of 2002 to a recent high of $200 per metric tonne. This represents a remarkable 102 per cent increase.

Closely behind the OCC upswing, residential (soft) mix increased 88 per cent over the second quarter average. Since the residential mix serves as a substitute when OCC is too expensive to buy, the trends tend to be similar.

Behind the OCC story is a combination of strong export demand, seasonal lack of supply (generation typically drops during the summer when most schools are closed) and the relative strength of the U.S. versus Canadian dollar. With mill downtime looming, however, it is likely that OCC prices will return to more normal levels over the remainder of the summer.

*Source: Current and historical data is from The Price Sheet, a monthly publication that reports a blend of spot prices from municipalities, end-users, and brokers for Ontario’s secondary materials market.

For more information, contact Damian Bassett at 416-594-3456, extension 229 or visit www.csr.org (the CSR Sheet is located under “Publications”).


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