Market Report
Price increases May not a done deal yet
NL-Tilburg, April 28th 2024
For Labour bank holiday our Belgian depots are closed on May 1st and our English depots on May 6th.
What price trends in recovered paper for May will look like remains to be seen. For now, local paper and board mills are giving few indications. Perhaps they want to get an impression of how the flag for exports is flying for May. There seems little movement there for now. All buyers in Asia already find the prices for occ (kls) amongst other too high with hardly any difference between local and export prices, which does not contribute to much activity in the export market. India is still not back in the market. The willingness to buy there is existing but mainly at prices below European local levels. So little to nothing is running there. We do see container rates being adjusted downwards here and there. A big cut in rates to levels before the Red Sea actions, would undoubtedly boost exports. It would lead to higher ex works prices in Europe while buyers overseas would not have to pay a higher cif price. Reports that container rates Westbound have risen quite a bit in recent weeks could indicate that shipping lines may raise rates where demand for containers is, i.e. in Asia, and thus could lower rates Eastbound in Europe to at least get some more activity in recycling products exports to Asia. That does seem to be the way we are heading, although there are still shipping lines sticking to much high(er) rates.
Mill buyers in Europe are keeping their powder dry for a while yet, which is rather surprising with the month with the necessary holidays approaching. Could the forecast feared by the paper and board industry have come true after all, and could the speed of recovery in orders for finished paper already be over ? Or is it a matter of looking forward to how supply and demand of recovered paper will work out in the coming
days ?
For now, demand for all grades is very good, with some mills also active in external stockpiling which indicates that prices are expected to go up further. But expectation is not yet reality, nor is it shared by all mill buyers. So we need a few more nights of sleep before we get clarity.
Price indication
Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 60 and € 90 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.