Market Report
Holiday feeling
NL-Tilburg, 21 July 2024
In this period of holidays, there is little news to report on the recovered paper market. Perhaps worth noting is that, for a change, no new price movements have been observed or announced yet. Export prices for occ and other cardboard grades did not move last week. Transport rates went up a bit to some destinations, down to others and necessary containers are not always immediately available. That is not a disaster however as export volumes are limited. Prices below local do not really initiate exports to far destinations with always a difficulty factor and extra costs for deliveries to countries with inspections. Generally, low grade recovered paper is also ordered less locally as a result of downtime at many mills, but due to the reduced generation, there is no sales problem, so stocks at merchant’s yards remain low. Middle and better grades are also in good demand but for those grades too, significant reduced generation is noticeable.
In the US, we see a similar market. In export cif prices for occ (kls) and mixed paper are down a bit and freight rates to Asia from the West Coast are up a bit, pushing ex works prices lower. But locally, prices also remain unchanged in the US for now. On the East Coast, buyers in India would pay a bit more for mixed paper. Occ (cardboard) on the other hand, is in less demand, in line with what we see in Europe.
A fire broke out at Kipas in Türkoglu, Turkey late last week and apparently the entire recovered paper stock of some 100,000 tonnes has been lost. Optimists see in this an opportunity for increased demand when buying resumes, but for now the machine is also standing, reducing market demand. Thus, with a consumption of 500,000 tonnes per year, Kipas had over 2 months of stock.
There is more news from Turkey with the announcement by Eren (Modern Karton Group) to now take up construction of the first tissue machine at the old UPM site in Shotton, UK. The overall plans for the site include a conversion of UPM's paper machine to recycled liner board to a capacity of 750,000 tonnes a year, a converting plant and three tissue machines with a capacity of 210,000 tonnes. The first tissue machine will be built at the site where the corrugated converting plant was previously planned, the conversion of the UPM machine has been somewhat delayed again and instead of the 2nd half of
this year, it will only start running in the 1st half of 2025.
However, the machine at Norske Skog in Golbey (F), even after continuously pushing forward the completion date of the conversion, is due to come on stream in the 2nd half of this year.
And Sappi reported the sale of its Lanaken (B) site to Dutch business developer UTB. It remains to be seen whether other activities will take place there in future or that a paper group will still come forward to revive the 300,000 sqm site.
Liverpool depot
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.