Market Report

Low grades down, better grades up

NL-Tilburg, 2 August 2026

At the start of August, it is still not easy to assess the market. As far as the low grades recovered paper are concerned, the situation seemed clear enough. Given the difficulties in securing containers and the sometimes unexpected costs associated with this, price reductions for exports seemed inevitable. At least as regards ex-works prices. Although demand in Asia is not overwhelming, purchases are still being made, provided the price does not exceed recent levels. Higher CIF prices are out of the question, given the challenging shipping options and uncertainty regarding final tariffs. The slightly lower dollar exchange rate does not help either. Nevertheless, higher export prices for occ (cardboard) were reported in the UK. This is partly due to the slightly higher PRN, but also because a significant volume is shipped to Turkey, where sales are generally conducted in euros; consequently, the dollar exchange rate (or that of the Lira) is not a factor there, and shipments face far fewer difficulties than those to India and South-East Asia.

However, despite the low generation, there still appears to be a sufficient supply of low grades available to the local European paper and board industry. This is why mill buyers in Southern Europe are considering lowering occ (kls) prices in August. Some buyers in north-west Europe have already taken this step, although the reductions are limited. Early next week it will become clear whether and by how much prices may be reduced in France and Spain – not coincidentally, countries where August is the holiday month and downtime in production is not surprising in view of the finished (new) paper market.

The market looks somewhat more promising for middle and high grades. Generation of these grades is low as well, but we might well ask whether this situation will improve after the summer holidays. Admittedly, capacity utilisation in the printing industry is lower, with the sector anticipating a recovery in order books in September; however, in line with the ongoing decline in the consumption of graphic paper, there will nevertheless be less printing waste than there was before the summer. Add to this the upcoming restructuring at Palm UK, which involves ceasing production of newsprint by the end of the year, and it is clear that demand will also fall. Not only in the UK, as Palm UK has also been sourcing supplies from the continent. The signs of reduction in purchases from the continent is already casting a shadow over the future. But that is a matter for later.

For now prices for all middle and high grades have risen by between €5 and €10 per tonne practically everywhere for August. This does not automatically mean higher ex-works prices everywhere, as transport is currently an unavoidable cost-driving factor. However, it certainly seems that the time of waste paper companies constantly absorbing ever-higher

(transport) costs has come to an end, as the recovered paper market had long appeared to be a buyer’s market. For now, the market for middle and high grades has shifted to a seller’s market. How long this will last remains to be seen.
And also whether a possible turnaround in the market would still come in time for many companies.

We found it nothing short of shocking to learn just this week that AP Concept is being wound up – and at such short notice. This purchasing and trading organisation, a joint venture between Steinbeis (Germany) and Melosch (Germany), had been active on international markets for many years. Following a report early last week that Melosch had sold its shares to Steinbeis, it was announced the very next day that the German and Dutch branches would close on 1 August 2026 and that the UK office would close on 1 October 2026.  The implications of this are still sinking in, but the speed at which such a major market player is set to disappear is difficult to comprehend.

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.