OCC & Recycled Fiber Price Index

What Is OCC?

OCC stands for Old Corrugated Containers — the trade designation for used corrugated boxes collected through recycling programs and commercial waste streams. OCC is graded under the Institute of Scrap Recycling Industries (ISRI) classification system, with the most commonly referenced grade being OCC No. 11 (also known as “regular dealer grade”), which consists of corrugated containers having liners of either kraft or jute.

As a commodity, OCC is bought and sold in active spot and contract markets. Prices are quoted regionally (Northeast, Southeast, Midwest, West Coast) and can vary significantly depending on local supply-demand conditions, export demand, and seasonal collection patterns.

Why OCC Prices Are So Volatile

OCC is one of the most volatile commodities in the paper and packaging supply chain, regularly swinging 30% to 50% within a single year. Several structural factors drive this volatility:

Export demand. China was historically the largest buyer of U.S. recovered fiber, and its import policy changes (particularly the 2018 “National Sword” policy that restricted contaminated recycling imports) caused dramatic price disruptions. Southeast Asian markets have partially filled this gap, but export demand remains a major swing factor.

Seasonal patterns. OCC generation peaks during the holiday shipping season (November through January) and falls during summer months. Mill demand tends to be steadier than supply, creating seasonal price swings.

Mill operating rates. When recycled containerboard mills run at high capacity, they compete aggressively for available OCC supply, pushing prices higher. When mills take downtime for maintenance or in response to weak box demand, OCC prices can drop rapidly as collectors struggle to find outlets.

Impact on Corrugated Box Pricing

OCC typically represents 15% to 25% of the total cost of producing recycled containerboard, depending on the grade and the mill's fiber furnish. A $30-per-ton swing in OCC prices can translate to a $5 to $10 per ton change in recycled linerboard or medium production costs. While this may sound modest, it becomes significant at scale — a large recycled containerboard mill consuming 1,500 to 2,000 tons of OCC per day will see its daily raw material costs shift by $45,000 to $60,000 with each $30 move in OCC.

For corrugated box buyers, OCC price movements matter most when you purchase boxes made from recycled-content containerboard. Boxes made from virgin kraft linerboard are less directly affected by OCC swings, though the competitive dynamics between virgin and recycled grades mean that sustained OCC price increases can eventually pull kraft prices higher as well.

Interpreting the Recyclers PPI

The Material Recyclers PPI (PCU42993042993033) covers the broader material recycling industry, not OCC exclusively. However, OCC is by far the largest volume commodity in the U.S. recycling stream, so it heavily influences this index. For more precise OCC pricing, industry participants typically reference published indexes from sources like RISI/Fastmarkets, PPI Pulp & Paper Week, or regional broker quotations. The FRED data shown here provides a directionally accurate, freely accessible alternative for tracking the general trajectory of recycled fiber markets.