Recovered paper exporters did not have it easy in the UK during April. Shipping companies had not only reduced container capacity on Asia-Europe routes, but had also raised freight rates by almost 100% since 1 March.
Several market players said that hardly any shipping containers are available for exporting recovered paper at present in the UK. As a result, an large amount of material is still available on the domestic market. Other market insiders explained that containers were still available, but were very expensive compared with the prices paid at the start of 2012.
Prices for ordinary recovered paper grades have dipped slightly as a result, with Chinese paper mills apparently only ordering what they absolutely need at present.
EUWID sources expect that prices will continue to be under downward pressure in the UK until the present container shortage ends and Chinese paper mills start ordering more recovered paper again. Domestic paper mills are sometimes reaping the rewards of this situation and stocking up their warehouses. By and large, merchants described domestic RCP demand as steady in April.
⇒ This article is an excerpt from EUWID's monthly report on the UK paper market. Price Watch UK for April will be published in the next issue of EUWID Pulp and Paper coming out on April 25.
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