It is quiet on the recovered paper front. Following price negotiations at the beginning of the month, there appears to be a balance on the local European market. However, it would be a mistake to assume that this means the market is doing well. Generation does not yet seem to have reached pre-holiday levels, even though this would be expected given the reported economic activity in the Eurozone. Demand is good, however, probably partly due to this still limited generation.
Looking at exports to Asia, we can see that real demand there is ebbing somewhat. With apparently cheaper offers from the US and other continents, the urge to confirm orders in Europe is somewhat less. Further price reductions in South-East Asia have now brought prices below European levels. In India, there is some pressure on prices, which led to price reductions of a few dollars per tonne last week. This is not insurmountable, but even at slightly lower prices, confirming orders is not really going smoothly.
This may justify the expectation that we may return there also to export prices that are at or below local European levels.
We may have more clarity on this next week.
Price indication
Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 60 and € 80 per tonne. These prices are depending on quality, available volume, region and loaded weight.
Look here at the Price chart >>
The price chart gives an indication of the price of mixed paper, separately collected, in the Netherlands free delivered mill over the last 10 years.
Scrolling over the top of the columns gives the exact price indication in Euro's per ton.