Recycled containerboard prices in Germany have been eroding again in June. Several factors such as the downward trend in recovered paper prices and high inventory levels contributed to this development.
The latest drop in recovered paper prices triggered continuing price cuts for recycled corrugated case material in Germany during the course of June after prices had stayed relatively stable in the first few days of the month.
Next to falling recovered paper prices, paper mills' elevated inventories were putting more pressure on prices. In addition, more recycled corrugated case material made in southern European countries was surfacing on the German market. The combination of these factors and upcoming holidays are making it difficult to firm up prices at present, market players said.
The German market was still busy both for domestic and export orders considering recent economic developments. The corrugated board market was finding that orders were being placed at shorter notice and that competition was tougher. On the whole, however, demand remains quite high despite buckling slightly.
⇒ 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. 21 on 23 May.
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