Recovered paper market – Q1 review: market hit by freight hikes / increased stocks
(Brussels, April 26, 2017) While recovered paper grades posted a relatively strong quarter, prices of lower grades of recovered fiber were negatively impacted by escalating freight costs, cheaper pockets of global availability, high levels of finished stock and possible compliance concerns relating to increased port inspections in China,
as per the latest BIR world recycling organisation’s latest quarterly World Mirror on Recovered Paper.
Feedback from the UK – by far Europe’s largest exporter of recovered fibre – suggests deep-sea export prices for OCC have slumped to almost half their peak levels of the first quarter. The sharp adjustment is seen as a reaction to a number of factors, including shipping rates from the UK to China soaring some 400% in roughly nine months to around US$ 2000 per container. …
At the beginning of 2017, German mills were mostly filled to the rafters with stocks of recovered paper. Many looked to take advantage of this situation by reducing their prices for the bulk grades by up to Euro 10 per tonne. However, this was not achievable in all regions of Germany because of two factors: first, recovered paper suppliers started off the year with low stocks; and secondly, recovered paper demand from Asia increased considerably — a trend that had begun in December – with prices higher than those prevailing domestically. Slightly improved container availability also favoured exports. In terms of the market, there was a strong north-south divide and also a west-east divide in January. …
To read complete article Go To: ‘Drastic deterioration’ in recovered paper market’
(Source: Bureau of International Recycling / Recycling International)