Market Report

Asian mill buyers return to European market
 

NL-Tilburg, April 14th 2024

Faster than expected actually, buyers from the overseas paper and board industry have come forward again this week to buy European recovered paper and occ (cardboard) in particular. Still bearing in mind the price increases locally in Europe mentioned last week for April, attempts have been made to hedge volumes with price increases of $15 to $20 per tonne. But this really underestimated the frenetic nature of the current market. Local demand in Europe last week brought further spot lot prices to the market and higher ones here and there. Therefore, the interest from Asia did boost deficit sentiment, but it will not have led to many orders. Surely, in a 'normal' market situation, prices in exports should be quite above local. The still unreliable container market with yo-yoing rates, containers not available on time and the extra costs due to sometimes incomprehensible customs and ILT controls and often inadequate payment guarantees, makes selling around the corner so much more attractive if there is no significant price difference.

In other words, with the prices offered this week by buyers in Asia, with buyers in India in particular also lagging well behind buyers a bit further afield due to higher transport tariffs there, exports are not really going to rebound. More substantial price increases will be needed for that. With this extra demand, there can therefore hardly be any doubt that further price increases in exports will come. Whether the local paper and board industry will then watch from the sidelines is not to be expected. With another period of many holidays ahead and thus the expectation that generation will be limited, it seems we can look forward to prices moving further up.

Unless rising tensions in the Middle East throw a spanner in the works. But it will be no coincidence that the historically highest prices for recovered paper were recorded due to geopolitical tensions in 1953 (Korea), 1974

(Middle East) and 2022 (Eastern Europe).

And finally, Prezero announced last week that it had opened a new depot for paper recycling in Alphen a/d Rijn (NL). This was necessary of course, as like paper mills producing test liner and medium, we don't have enough of these. 

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.