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EUWID sources say there is a big risk of recycled containerboard prices dropping further in July if recovered paper prices continue their downward trend.
The downward trend in recycled containerboard prices continued in June. The drop in recovered paper prices in conjunction with high inventories and excess capacity made prices for brown recycled containerboard tumble again.
White-top testliner prices were also trimmed in June. Some suppliers were upset with their competitors who readily offered price cuts to customers. The white-top testliner segment would have otherwise been perfectly stable in June, as buyers from the corrugated board industry were not putting any downward pressure on prices, they believed.
Most companies have scheduled routine maintenance outages for the summer period. Several mills will idle production for one to two weeks time. Furthermore, the market is awash with rumours of additional production cuts but these plans have not been confirmed so far.
⇒ This article in an excerpt from EUWID's monthly report on the German paper market. The EUWID Price Watch German for June is published in EUWID Pulp and Paper no. 27.
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