Prices for old corrugated containers (OCC, 1.05) dropped on the British market in May, following a price crash for Packaging (Export) Recovery Notes (PRN, PERN).
However, as PRN prices had kept British OCC prices artificially high; the latter are now approaching levels seen on the Continent. Experts believe that prices for mixed paper and board (1.02) in the UK might follow this movement in June.
Prices for low RCP grades in Italy and France stayed the same in May as low demand was balanced out by low collection volumes. However prices for high grades continued their downward trajectory.
Market participants talking to EUWID do not expect a change in market fundamentals any time soon. Demand for finished paper and capacity utilisation at the European paper industry remain weak. Export markets in Asia also seem to offer no impetus among low demand and sinking recovered paper prices.