Market Report

Worries about market China

Tilburg, September 19th, 2021  

As in Europe, prices for all grades of recovered paper in the U.S. rose further this month, for cardboard it was the 11th increase in a row. All other high-to-low grades also traded $5 to $10 a ton higher. And just like in Europe, exports to Asia are weakening. Mixed paper still finds some sales in India and the export demand for cardboard comes mainly from Mexico, but local prices have now risen so high that it has become too expensive for most importing countries. This is also a direct result of the market for finished paper and board and recovered  in Asia, which is dominated by demand from China. News from the Chinese market starts to get alarming now. Sales prices for finished paper and board have fallen in China, recovered paper has followed suit, and pulp is also subject to further price pressure after prices for pulp in China had already fallen earlier. Orders books are thin while it should be high season now. A lot of downtime is announced, some with reasons of ‘maintenance’, but 2 to 4 months maintenance like here and there mentioned is worrying. And pulp prices are also over the top in the US and Europe, and buyers have enough inventory to bargain hard for lower prices. Expectations in the US, as in Europe, are different. While some see no end to the price rally on the recovered paper market, others believe that prices are at the top or over and that more availability is on the way as generation normalizes. Spot lots are less in number now and the top of the prizes are also gone. So there is little else we can say that the market has indeed entered calmer waters and we have to wait and see what will happen in the





coming weeks. The European paper and cardboard industry says it is still on thick order books and some grades in the graphics sector are no longer available this year. This is as far as the "production reservations" are concerned, in any case. These reservations are in fact not orders but only production planning, whereby final delivery terms and also prices are agreed upon by the time production can take place. But then again, as of October 1, another significant price increase has been announced for testliner and medium. In light of this, a reduction in waste paper prices would not make a lot of sense.

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 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 voer the last 10 years.
Scrolling over the top of the colums gives the exact price indication in Euro's per tonne.