Recovered paper prices remain volatile in France. Complications in export activity with China have led to prices reductions in the country.
After surging in July, French prices for mixed paper and OCC started to crumble again in August. Once again, developments in China and export business were spurring the movement in prices. Companies active in the export business said that Chinese paper mills need to extend their import licences for recovered paper. Many firms had reportedly used up their quota for the amount of recovered paper that they were allowed to import because of brisk demand and strong buying activity in previous months, they noted.
The licence extension process is still in progress, meaning that many Chinese mils are not currently allowed to import material. Exports to China fell dramatically in August as a result. More recovered paper has stayed in France because of the reduced export activity so that French paper producers had no problems in sourcing material.