Market Report

More containers available

Tilburg, April 11th, 2021

It looks like the damage caused by the blockade in the Suez canal will be limited. Some shipping lines had to postpone bookings due to later arrival of certain vessels, maar the chaos which was feared for by many did not happen, not yet anyway. And it looks like we are getting to a wider availability of containers as well. There are no difficulties to get exports orders shipped right now and although shipping lines are announcing significant rate increases for May right now sometimes booking are possible at favourable rates. That has resulted in Asian buyers reducing offered cif-prices a little which in other words won’t  turn the lower shipping rate into a better ex works price, but the advantage will be withheld by the overseas buyers. It that will work out for them is not completely clear yet – this will depend especially on price developments on the local European market. We indicated it already last week, prices of mixed paper and occ (kls) have been topped off by some buyers, for others the top has been reached.  Other grades however keep on moving up, with especially lower deinking and tissue grades  making big steps. For both graphic paper as well as  tissue producers that seems to be quite painful. Too low sales prices for graphic paper and prices fixed for a longer period for tissue do not allow a strong increase of raw material prices like we have seen over the last months for recovered paper, pulp and wood. Reason why the talk is now about down time. But will orders still not need to be fulfilled. ? A big Dutch supermarket chain already announced that bills won’t be paid if suppliers don’t honour their agreements. Anyway, where by some in the chain the sales prices for raw material might be welcomed with applause, further down the chain it leads to serious problems. That in itself would be new again as well, as traditionally periods of high raw material prices always have worked out to be good 



for the paper and board industry.  Perhaps that is still to come ?
For now the market still continues to be good and looking at the volume of demand that won’t change overnight.

Price indication

Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 140 and € 200 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.