BIR World Mirror on Recovered Paper / Quarterly Report – July 2016
(Amsterdam, July 18, 2016) International Markets with a focus on Asia
Global uncertainties continue to dampen growth and weaken demand for recyclables, which is also contributing to an increase in unemployment levels worldwide. Weak consumption has meant increasing stocks of both raw materials and finished goods, affecting both prices and profitability. The EU’s GDP of some Euro 14.63tn has also been growing at a very slow pace, with only a few member countries registering steady growth both in GDP and demand. However, this helped to sustain export price levels during the second quarter.
Exporters had to continue trading under the challenging conditions imposed on the market by increasing geopolitical stresses, fluctuating oil prices and currency volatility following the strengthening of the US dollar and the weakening Euro.
Sea freights remained low although, following the Chinese New Year holidays, a shortage of sea-going containers was experienced in April and May.
At the start of the second quarter, good availability of US fibres and weaker prices resulted in an increase in exports from the USA at lower price levels, although demand strengthened through the quarter and prices started firming up. This also had a direct effect on export values for European fibres.
European OCC prices began the second quarter at US$ 160-plus per tonne and strengthened over the period to US$ 167-plus. Similarly, mixed paper prices opened the quarter at US$ 115-plus per tonne but improved to US$ 130-plus by the end of June.
To access full report please visit www.bir.org (Source: Bureau of International Recycling [BIR] press release)