The downward trend on the UK recovered paper market has not been stopped yet with prices having fallen again in June. Continued weak export activity to the Far East has contributed to this development.
The UK recovered paper market again saw considerable price declines in June. Weak demand, high inventory levels among paper manufacturers and generally subdued trade with the Far East led to a further slide in prices. Although paper factories are still regularly buying material from their usual business partners, there is almost no demand for additional volumes.
Demand from China is also said to be weak. Reduced demand was attributed on one hand to increased sourcing of recovered paper in North America due to favourable exchange rate effects and on the other to slower economic growth and falling paper prices in China. A third factor is also the significantly increased freight rates deterring Chinese buyers from procuring recovered paper in Europe.
⇒ This article in an excerpt from EUWID's monthly report on the UK paper market. The EUWID Price Watch UK for May will be published in EUWID Pulp and Paper no. 26 on 27 June.
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