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Commodity Markets

Understanding Paper Grades in Commercial Recycling

By Combined Resources, Inc.· February 2025

Grade Determines Value

Paper isn't just paper. Walk into any paper mill and ask what they'll pay for your material, the first question they'll ask is what grade it is. The recycling market pays vastly different rates depending on the grade, and those differences aren't small. We're talking about 2x, 3x, sometimes more between the highest and lowest grades. Mixing grades together destroys value because the buyer has to assume the worst. Keeping grades separated is the most direct lever you have on your recycling revenue.

OCC, Old Corrugated Containers

Corrugated cardboard boxes. OCC is the most common commercial paper grade and one of the most valuable when handled correctly. Clean, dry, baled OCC commands a solid market price and is in constant demand from paper mills. The problem is contamination. Wet OCC loses structural integrity and is downgraded or rejected outright. OCC mixed with food waste, styrofoam, or plastic is worth a fraction of clean material. Keep your cardboard dry, break down boxes flat, and keep the bale clean. That's how you capture full OCC value.

SOP, Sorted Office Paper

White ledger, copy paper, envelopes, computer printout, this is SOP. It's one of the highest-value paper grades in the commercial market. Mills prize it because of its high fiber quality. But SOP loses its premium the moment it gets mixed with cardboard, colored paper, or other grades. Clean SOP requires dedicated collection containers, ideally at individual desks or copy stations, and clear employee training on what qualifies. The extra effort pays off directly in your monthly recycling revenue.

ONP, Old Newsprint

Newspapers, inserts, and catalogs fall into the ONP grade. It carries lower value than SOP due to its shorter fiber length and the ink load it carries. ONP volumes have been declining steadily as digital publishing has replaced print media, which puts some downward pressure on demand. For facilities that generate meaningful ONP volume, print shops, publishers, distribution warehouses for newspapers, it's still worth separating cleanly from mixed paper to capture the premium over blended grades.

Mixed Paper

Everything else lands here: junk mail, kraft bags, cereal boxes, paperboard packaging. Mixed paper is the lowest paper grade and commands the lowest price. It still has value, if the volume is there. Small facilities that can't cost-effectively separate individual grades often consolidate into a clean mixed paper stream. It won't earn what SOP or OCC would, but it's infinitely better than sending it to the landfill and paying disposal fees.

Kraft / Bag Stock

Brown paper bags, grocery sacks, kraft wrapping paper, this grade is often overlooked by commercial facilities. It carries medium commodity value and is worth separating from mixed paper if volume justifies it. Retailers, grocery distribution centers, and food manufacturers frequently generate enough kraft stock to make a dedicated stream worthwhile. Ask your recycler what they're seeing in current market pricing for kraft before deciding whether to separate it or fold it into mixed paper.

Why Sorting Matters to Your Bottom Line

Here's the math that makes this real. A facility generating 10 tons per month of unsorted, commingled paper might earn a modest per-ton rate on mixed paper, if the load isn't rejected for contamination. The same 10 tons properly sorted into clean OCC and clean SOP streams could earn 2 to 3x more per ton. At scale, that difference is thousands of dollars a month. Sorting isn't overhead, it's revenue optimization. Learn more about CRI's commercial paper recycling services, including the 15+ grades we handle and the mill-direct pricing we deliver.

CRI Handles the Full Spectrum

CRI handles more than 15 paper grades and provides grade-specific containers, clear labeling, and employee training as part of every program. We've been placing paper at domestic and international mills for 40 years, we know which mills want what grades, and we know how to get you top-of-market pricing on every load. Request a free assessment and we'll map every paper grade your facility generates and show you exactly what it's worth.

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