Players on the Polish recovered paper market have been doing efforts to adjust prices to the level in Western Europe. Prices have slightly moved upwards in September as a result.
Over the past two months, the Polish recovered paper market has seen modest demand growth followed by a moderate price rise. After the sharp price declines observed in Poland at the beginning of the summer, quotes remained stable in August, contrary to the expectations of several market participants.
Rising spot prices from the second half of the month then signalled an inflection in the price curve, market observers report. Beginning in September, most recovered paper merchants in Poland began charging a mark-up for supermarket paper and board. Prices were moving sideways only for certain smaller converters, EUWID was told. According to respondents, these converters were able to postpone the step being seen elsewhere in the industry because they had sufficient stocks in their warehouses.
Higher recovered paper prices in Poland had not come in response to a major change in the supply-demand situation in Europe, said one industry insider, even as he noted that the Polish market had picked up again at the end of August. Rather, paper factories had become willing to accept higher recovered paper prices in Poland to adjust them to the prevailing level in Western Europe. By doing so, they intended to prevent too much material from heading to export markets as a result of the price difference as had increasingly been happening at the end of August.
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