Prices for lower recovered paper grades fall in Germany

In the first half of the month pressure from buyers and sufficient supply pushed prices for ordinary recovered paper grades in Germany a few euros lower.

Commenting on the downward price shift in Germany, one waste management firm said: "Nobody knows why. Prices could just as well have been left at last month's level", an opinion that was echoed with slight variations by competitors. A whole series of factors influenced business in May. Demand from paper mills had recently strengthened. Flooding led to reduced recovered paper arisings, not in all parts of Germany, but at least in areas of Bavaria, Thuringia, Saxony and Saxony-Anhalt.

However, paper mills were reportedly enjoying good recovered paper supply at the start of the month. Recovered paper arisings in Germany had apparently been decent in May despite the large number of public holidays. Merchants are now reporting resurgent demand for Far East exports. Market players believe that paper mills in China now need material again because Chinese buyers were contacting suppliers not only in northern and western Germany, but in parts of southern Germany as well. Chinese buyers appear willing to cover the increased transportation costs. These buyers could also be ready to pay more for recovered paper, insiders speculated looking ahead to July.

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