Pressure on recovered paper prices persists, paper demand is healthy, producers say
In Germany prices of brown recycled corrugated case material weakened again in April. Manufacturers failed to arrest the weakening trend, and reports indicate that prices moved down further at the beginning of May. There are simply too many negative factors despite healthy demand from the corrugated industry, market sources add.
Paper deliveries to Ukraine have been scaled down and manufacturers have to sell their goods elsewhere. Since the week preceding Easter, there has been a bank holiday every week in Germany and this has also been the time for the Easter school holidays. At the same time, industry reports add that production has not been curbed over the Easter holidays to any significant extent which has caused stock levels to rise. Finally, there is mounting pressure on individual recovered paper grades.
Still, paper mills do not want to compromise on prices further until the end of May as demand is strong. Some paper producers have voiced complaints about "price-driven thinking” – they see no reason to adjust prices since stock levels usually tend to move higher in the holiday season and recovered paper prices have not weakened across the board. Demand is healthy and should not weaken in the coming weeks, they observe.