After a short interlude in November when prices increased, ordinary recovered paper grades on the UK market became cheaper again in December. Far East exports are said to have slowed down.
EUWID respondents have rarely been so accurate in predicting the next month's market developments than they were in their December outlooks. As anticipated, it became clear as early as late November and the first week of December, that stronger demand from the Far East was not to last. Sources said that Chinese paper mills had filled their warehouses nicely. Export prices for mixed paper and board (1.02) and old corrugated containers (1.05) quickly dropped again as demand cooled, with less being paid on the domestic market again as a result.
Prices for deinking grades in the UK have not altered in December, whereas tissue manufacturers have paid up to £8/t more for multigrade.
Major domestic packaging paper mills have well-stocked warehouses of recovered paper. For one thing, a few machines are not running at full speed and for another the pre-Christmas jump in collection volumes is already palpable, especially when it comes to recovered paper generated by retailers.
⇒ This article is an excerpt from EUWID's monthly report on the UK paper market. The EUWID Price Watch UK for December will be published in EUWID Pulp and Paper no. 50 on 12 December.
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