Prices for ordinary recovered paper grades in the UK collapse
Mixed paper demand from China has plummeted dramatically, in particular in the wake of a new importing policy in China. Prices plunged by up to £50-60 during last two weeks of March.
Falling prices have been prompted by stricter import inspections in China as a result of the National Sword initiative and the fact that Chinese paper producers are no longer absorbing freight costs. What is more, demand and prices for paper and board dropped sharply in China in March.
Many exporters of mixed paper said they wanted to wait and see how the National Sword guidelines were being implemented before sending material to China again – which will only be in June.
Experts think that the National Sword initiative has the potential to bring about fundamental changes to the grade structure and that it was a “game changer” in the British recovered paper market.
This article is an excerpt from EUWID's monthly report on the paper markets in the UK. The EUWID Price Watch UK for April will be published in EUWID Pulp and Paper no. 16/2017 on 20 April.
Our weekly newsletter's print and e-paper versions keep busy professionals up-to-date on the latest news from European pulp and paper markets.
Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.