American exporters of paper into China are expecting prices to drop this month.
According to trade magazine Recycling Today, exporters on the west coast of the United States are reporting prices of OCC to drop by around $10 per tonne (£6.40) in September from August.
This is because with the US economy slowing, Chinese buyers are likely to try to take advantage of this and push prices down. Combined with a slowdown in China, there will be added pressure for the Chinese to get more value, it says.
However, the domestic US market remains strong for most paper grades, with inventories reported to be full in many cases.