August and September were very turbulent months when it came to ordinary recovered paper prices in Italy. The trend in prices for these grades is clearly pointing lower with sources saying that prices are plunging.
Buyers signing contracts early in September had to pay more than those who still purchased material towards the middle or end of the month. Prices fell week after week and there are no signs of the trend coming to an end right now, sources told EUWID. As a result, the price bracket for mixed paper (1.02) and old corrugated containers (OCC; 1.05) became much wider.
The reversal on the recovered paper market began towards the middle of August. Chinese buyers stopped importing from Italy almost entirely because they had exhausted most of their import quotas and did not have new import licences since these had not been renewed by the government yet. Supply consistently increased in Italy and prices fell week after week on both the domestic and export markets.