German recycled containerboard prices drop in May

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Prices for brown recycled containerboard are pointing down in Germany. The mark-up achieved in April was rescinded in May due to weak demand and ample supply.

Prices for brown recycled containerboard declined in Mai on slow demand and abundant supply. Another drop in prices for deliveries in June cannot be excluded. The main trend driver in June is said to be the development of recovered paper prices. If RCP prices decline again, it will be difficult to maintain current price levels for recycled containerboard, EUWID respondents expected.

Southern European producers, facing significant declines in shipments in their domestic markets, were increasingly entering the German market, insiders report. The additional capacity in the UK was also being felt on the market, making it harder to stabilise prices.

This could reportedly also affect prices for white-top testliner in June, which have been unchanged until now. However, suppliers expect any downward price adjustment to be superficial, arguing that demand is good in May and June. They point out that white recycled containerboard is not as affected by overcapacity as the brown paper segment.


⇒ This article in an excerpt from EUWID's monthly report on the German paper market. The EUWID Price Watch Germany for May is published in EUWID Pulp and Paper no. 23 on 6 June.

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