Export limited

Whereas Chinese buyers had counted on increasing sales prices for liner board for reasons of higher recovered paper prices, amongst others, this eventually turned into a disappointment. Here and there prices of finshed paper even had to be cut which led to an initiative to try to reduce the price of occ (kls). For Europe this will work out to be difficult in the short term. Lower cif-prices with an increasing chance of higher transport rates leads eventually to a lower ex-works price which gets further and further away from the European local level. With also less generation there will be very little interest for suppliers to go along with that. Despite this also the big Chinese 3 announced to reduce their purchase prices.  For mixed paper there are no deals at all for Asia from continental Europe for reasons of lower prices for American mixed paper that is also preferred by Chinese buyers and the high local prices in Europe that are linked to the occ price. Lower deinking grades are moving up in the meantime in Europe, pushed by this high price for mixed paper. As a result of that, prices of the low middle grades are pushed up as well. Where the market will

be heading to, will depend on the availability of (cheaper) low grades in the U.S. and Japan for Asian buyers. However there is little to dream about for them, so price reductions in the short term are not realistic. Good local demand in Europe because of low stocks and the possibility to increase sales piries of finished paper in this sector keep the market solid. On top of this there will be the demand for extra volumes of the news print industry in order to build up their stocks for the summer time.

Pulp: changing picture

Earlier announced price increases for NBSK did not make it finally. Prices remained on the same level, around $ 830 per ton. This is somewhat different for short fibre pulp. Eucalyptus and birch were moving up already and tend to move up further, although with today’s prices of $ 680 the announced level of $ 730 never was achieved. After Chinese New Year the number of pulp deals increased again but prices of long fibre hardly moved due to high stocks. Short fibre pulp showed limited availability and prices this last week went up with $ 2 to $ 3 per ton. Un-bleached pulp was unchanged.

Imports recovered paper China Dec. 2011: +18%

Imports of recovered paper in China increased in December 2011 with 435.000 tons or over 18% compared to December 2010. In the whole of 2011 imports totalled to 26.842.000 tons, which was 2,4 millions tons more or 10% more than the 24.323.000 tons of  2010. 

Price indication
 

Price indications for low grades of recovered paper, sorted, baled and loaded ex-works are now between 100 and 150 Euro per ton. Prices depend on quality, volume, loaded weight as well as geographical loading area. The price chart shows the price of the low grade 'mixed paper' in the Netherlands over the last 16 years.