OCC Prices Explained: What Drives the Cost of Recycled Cardboard and Why You Should Care

Old Corrugated Containers (OCC) — the used cardboard boxes collected from businesses and recycling programs — are the single most important recovered fiber grade in the corrugated packaging industry. OCC is the primary raw material for recycled containerboard, which now accounts for nearly 50% of all containerboard production in the United States.

When OCC prices move, the effects ripple through the entire corrugated supply chain. Here's how OCC pricing works and why it matters to everyone from mill operators to box buyers.

What Is OCC and How Is It Graded?

OCC refers to used corrugated containers that have been collected, sorted, and baled for recycling. In the ISRI (Institute of Scrap Recycling Industries) grading system, the standard domestic OCC grade is designated as PS 11 (also commonly called #11 OCC).

The grading matters because contamination levels, moisture content, and fiber quality all affect the price mills are willing to pay. Key quality factors include:

• Prohibitive materials — Non-paper contaminants like plastic, metal, or glass. Industry standard allows no more than 1%.
• Outthrows — Paper materials that don't belong in the OCC grade (magazines, office paper). Standard allows up to 5%.
• Moisture content — Wet bales weigh more but have less usable fiber. Excessive moisture reduces effective pricing.

How OCC Prices Are Determined

OCC pricing in North America is driven by the interplay of several forces:

Domestic Mill Demand

The largest single factor in OCC pricing is how much fiber recycled containerboard mills need. When mills are running at high operating rates and building inventory is difficult, they compete more aggressively for OCC, pushing prices up.

As of early 2026, recycled containerboard represents approximately 49.54% of the U.S. containerboard market — meaning nearly half of all corrugated boxes start as recycled fiber. This structural demand provides a floor under OCC prices.

Export Markets

Before China's National Sword policy (2018) and subsequent import restrictions, China was the largest buyer of U.S. OCC, absorbing millions of tons annually. The loss of this export market caused prices to collapse initially but has since been partially offset by demand from Southeast Asia, India, and domestic mill capacity additions.

Export pricing often sets the marginal value of OCC. When overseas buyers are willing to pay more, domestic mills must match or exceed those offers to secure supply.

Seasonal Patterns

OCC generation follows predictable seasonal patterns:

• Q4 (October-December): Peak generation due to holiday retail season and e-commerce surge. Supply floods the market, often depressing prices.
• Q1 (January-March): Generation drops sharply after the holidays. Prices often firm up.
• Q2-Q3: Moderate generation with pricing influenced more by demand cycles.

Collection and Processing Costs

The cost of collecting, sorting, and baling OCC has increased significantly due to higher labor costs, fuel prices, and contamination management requirements. These costs create a floor below which OCC collection becomes uneconomical — reducing supply and supporting prices.

Current OCC Price Benchmarks

As of early 2026, OCC (No. 11) pricing ranges from approximately $118-130 per short ton, varying by region and quality. Key regional variations include:

These prices reflect sorted, baled OCC delivered to mill or export dock. Actual realized prices for generators (businesses, MRFs) are lower after accounting for collection, processing, and hauling costs.

Why OCC Prices Matter to Box Buyers

You might wonder why the price of used cardboard should concern someone buying new corrugated boxes. The connection is direct and significant:

OCC is a major input cost for recycled containerboard. When OCC prices rise, recycled board mills face higher raw material costs that they pass through to customers — the corrugated converters who make your boxes.

OCC prices influence kraft vs. recycled board economics. When OCC is cheap, recycled containerboard has a significant cost advantage over virgin kraft. When OCC is expensive, that gap narrows, shifting the competitive dynamics between mill types.

OCC trends signal broader market conditions. Rising OCC prices often indicate strong packaging demand across the economy, which correlates with broader containerboard and box price increases.

Tracking OCC Prices

Reliable OCC pricing data comes from several sources:

• Fastmarkets (RISI) — The industry benchmark, but subscription-based and expensive
• RecyclingMarkets.net — Regional pricing for various recovered fiber grades
• FRED (Federal Reserve) — Free Producer Price Index data for material recyclers, which tracks OCC trends directionally
• Our own Price Tracker — Free monthly OCC proxy data from FRED PPI

For a deeper understanding of how OCC fits into the broader containerboard pricing picture, see our guide to the corrugated box pricing formula.

The Bottom Line

OCC is the hidden engine of the corrugated packaging industry. Its price movements affect mill economics, containerboard pricing, finished box costs, and the viability of the recycling infrastructure that gives corrugated its 93%+ recycling rate. Ignoring OCC pricing dynamics means missing a critical piece of the corrugated market puzzle.