In the wake of mediocre demand, high stocks and increased supply on the French market, prices for brown recycled corrugated case material dropped again in May.
Prices for brown recycled corrugated case material are still heading downhill in France. Since stocks had built up early on in the first quarter as a result of inadequate stoppages, prices are under pressure in May. This is also being fuelled by new production volumes at Blue Paper, which increase supply of paper even though a large part is converted internally. Demand is described to be rather average. In comparison with other European countries, France is one of the weaker regional markets.
In the third week of May it was still unclear what is going to happen with prices in June. Paper manufacturers are drawing attention to the fact that European stocks apparently fell sharply recently, even though production is running at almost full steam. This has given some manufacturers reason to hope that prices will stabilise whereas others believe stocks must fall again sharply in June to vent the pressure on prices. Some say it must also be borne in mind that some customers have accumulated large stocks of paper, which could soon lead to restraint in purchasing.