Update Regarding Recent Events in the OCC Market
We value our partnership with you and believe Environment
Stewardship is important. It is our sincerest intent to continue to
provide the prompt collection and recovery of cardboard (OCC) and all your
recyclable materials, that you have come to expect from us.
We felt it was important to provide you this update
regarding recent events in the OCC market.
In recent weeks, CKFR has experienced abrupt massive
interruptions with delivering the end product we collect to the mills we
support. This is not localized to CKFR, it is a large regional issue
impacting all recyclers. Paper Mills as a whole are experiencing more down time
than they had anticipated. This has resulted in a large backlog creating
an additional expense for CKFR to handle the material and maintain operations.
We are working through these turbulent times as best we can. We believe
“This Too Shall Pass”. If history is any indicator, we will see the
demand increase in coming months.
Even after a price drop in March we anticipate more drops in
months ahead. In addition to the published price drop on OCC with the
additional Handling, warehousing and transportation we have incurred we are
going to need to adjust our pricing structure to reflect the current market
conditions. We can’t be certain at this time exactly what this is. Our
commitment is to continue communications, so everyone is aware.
We realize this is not ideal for anyone and trust you will
understand our current situation. We are asking for your support and
corporation during this time. Once things free up, we will readjust our price
back to the level it is at currently.
Thank you and as always please feel free to reach out
directly to any of us here at Central Kentucky Fiber Resources.