Market Report

Overheating cools down

Tilburg, January 24th 2021

Eventually everything comes to an end. With no buyer found, the Papeterie de Begles (near Bordeaux, France) is going to close down. A far away destination for Dutch fruitboxes amongst others transformed into plaster board will disappear forever. Papresa (Spain) ordered a new stock preparation with a capacity of 700 tons a day aiming to reduce its newsprint production and start making market competitive recycled packaging paper (testliner and medium).  So that trend continues without delay. Just like the discussions between Veolia and Suez. The latter presented this week all of a sudden a different buyer for the shares but Veolia immediately responded that they won’t offer the shares acquired from Engie recently and will also hold upright its offer for the rest of the shares of Suez. Will be continued without any doubt.
The recovered paper market seems to have lost its overheating in the meantime. The search for low grades calmed down both locally and in export, although demand is still very strong. However, paying each price is not on anymore. Transport also seems to unwind a bit. Containers are still as scarce as gold but like gold you can find some if you are ready to pay. The route from and to the UK looks more like dominated by transporters who are to nervous to go abroad than by complexity of export documents. There is no memory anymore of customs clearance in Europe. The only thing we were capable of was taking containers to the port, drop them off there and let the shipping line do the clearance. Old know-how that was lost , so new studies need to be taken on.
This week RISI indicated that  countries like India and Vietnam have taken over the role of big buyers of occ from China. In November 2020 India imported 294.000 tons and in the same month the volume going to Vietnam had more than doubled compared to October and was also higher than was exported to

China. This may be so for 2020 but with 169.000 tonnes to Vietnam in November the initial exports to China of more than 2 million tonnes can’t be compensated. But every little help, so much has become clear in the meantime. The middle and high grades have more or less maintained prices in January. No surprise with pricing levels of low grades approaching so quickly. For February however it is hard to give any direction. It looks like overissues will be well sought after as some buyers already wanted to conclude orders this week. With the ever decreasing trend of sales of printed media that is not a very big surprise either. The corona crisis has only speeded up the ever lower generation.
Finally some sad news. Willem Emmen died on January 3rd at the age of  79. Willem was a real paper man who dedicated his whole live to the paper sector as, amongst others, ceo of Edet Tilburg (NL), Moelnlycke Netherlands, chairman of Dutch paper federation VNP and chairman of the board of DS Smith Netherlands.    

Price indication

Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 80 and € 130 per tonne. These prics 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 voer the last 10 years.
Scrolling over the top of the colums gives the exact price indication in Euro's per tonne.