Although the export business gained some momentum, recovered paper prices have fallen again in Italy in July, especially those for ordinary grades. Demand from domestic paper mills is limited and supplies are high.
The forecasts made by companies active on Italy's recovered paper market have proven accurate. After a temporary scarcity during the lockdown in the country and subsequent price explosion lasting until around mid-May, recovered paper prices fell just as quickly as they had risen. Prices for ordinary grades plummeted in June and July, verging on where they stood prior to the cataclysmic events that began in March.
Sources said that more abundant supply, which is coinciding with slow demand at the moment, was spurring the downward trend for ordinary grades.
The export business was one ray of hope in July, having rebounded a little after a few very quiet months. Merchants reported brisker demand and more orders. This might save the summer for several merchants. A couple of suppliers said that they were focusing on serving the export business and had already landed orders for August. They did not have high hopes for demand within Italy.
This article is an excerpt from EUWID's monthly report on the paper markets in Italy.
Find the EUWID Price Watch Italy for July in EUWID Pulp and Paper issue no 32/2020, which will be available to our e-paper and print subscribers as of 5 August.