It is still unclear what will happen to recovered paper prices in September. Reports on local European prices are all over the place. Our neighbours to the east are seeing further price reductions, prices in the Benelux are stable or have changed very little, and in southern Europe our colleagues are even hinting at price increases. Where this would come from is a mystery, but there is talk of possible price increases in Spain as a result of price increases in Italy and imports from countries such as France and England, for which higher prices would be paid.
To be honest, none of this fits in with the global market picture, with pressure on the selling prices of new (finished) paper, but also with somewhat less positive noises coming from waste paper importing countries in Asia. There is at least some hesitation there to place orders, and certainly not at last week's prices. What the outcome will be is not yet entirely clear.
Indications point to price reductions of $5 to $10 per tonne, depending on the destination and the associated container rates. These were already very low for South-East Asia, so it is virtually impossible to find compensation there for price reductions that have been set at $10 per tonne. The situation is different for the higher rates to India, for example. There, with some negotiation on shipping rates, it is still possible to make up for some of the price reductions that buyers have in mind. From a maximum of $5 per tonne to symbolic reductions of $2 to $3 per tonne. All this for cardboard grades.
Nothing is clear yet for graphic and tissue grades. On the one hand, because demand is still good, but also because there are hardly any stocks of these grades, although this does vary from region to region. So, we will have to wait until next week.
Little news is expected from North America as well, with Monday being a public
holiday, Labor Day in the US and Canada. The extra recovered paper stock that the paper and board industry thought they would need for this long weekend has now arrived, so we will have to wait and see how things stand on Tuesday.
Price indication
Price indication in Europe for low grades of recovered paper, sorted, baled and ex works are now between € 60 and € 80 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.