Market Report
Export quiet during Chinese New Year
NL-Tilburg, 2 February 2025
While the export market for low grades is currently best characterized as ‘quiet’ because of Chinese New Year holidays, locally demand for the same low grades seems to be picking up somewhat. Remarkable on the one hand perhaps because, in general, reports among the European paper and board industry about order positions have been predominantly negative lately, on the other hand, the generation of recovered paper is still below ‘normal’. And also, despite the lull in the export market, where neither positive nor negative price movements were seen last week, the price level for low grades, and occ (cardboard) in particular, in exports is still quite higher compared to local European prices. Furthermore, low container transport rates support export prices and a return to a higher Dollar rate may be on the horizon, following the ECB's interest rate cut.
In the mid-terms, there is also some increased demand. We already noted some rising prices in the US middle grades in export markets in January, the same is now occurring in Europe, with our industry now being listened to by the local paper and board industry when bringing up requests for price increases. Whereas at the end of 2024 several buyers for middle grades were still predicting that after January prices for the same middle and de-inking grades would go down further, we may be able to speak of a turnaround.
Still to see if these sentiments can be converted into better sales prices in February, as that is not clear yet. We will see that next week.
Incidentally, negative news from our chain continues to come through just about every day. This last week, we were told that in Dijon, France, Tetrapak's beverage packaging plant is to close, with 204 jobs at risk. Also in France, in Sarreguemines, Mayr-Melnhof plans to close its printing plant for leaflets for medicine boxes, with 60 jobs to be lost. In Italy, after missing two interest payments in 2024, Pro-Gest has run into further financial difficulties where a debt settlement with creditors may be the only financial way out. Pro-Gest bought a newsprint mill in Mantua in 2015 to convert it to recycled liner board.
And in the other recycling sector, namely plastics, we were surprised this week with a negative article in Quote about Morssinkhof Rhymoplast (NL) a major player in the recycled plastics market with several plants in Western Europe. It was reported that Morssinkhof's auditors have not issued an approved annual report for three years now with the explanation: the accounts are a mess. But that did not stop Rabobank and ING from providing another €100 million in 2022 nor Ikea from paying €174 million in 2023 to expand its stake in the company by 25% to 40%. A growing business, the owners say. Which has then, it seems, gone from being a traditional recycling company to something of a start-up in the plastic recycling market.
Price indication
Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 40 and € 70 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.