Prices for ordinary recovered paper grades continue to rise on the German market. Following the very considerable upticks in January and February, prices in March are said to be rising even more sharply. There has been little change to the situation on the market: Collection volumes are relatively low and demand remains very high – especially from the packaging paper sector. Consequently, the mark-ups in March are reported to be as hefty as €40/t or even higher.
At the same time, paper mills are apparently trying to secure sufficiently large volumes to carry them through the Easter holidays. A few players therefore suspect that psychological effects are also driving the price surge. However, since production in all segments is running at full tilt, the shortage of material is nevertheless very substantial. Fierce battles are currently being fought over volumes, EUWID was told.
High prices for deinking grades intensify pressure in graphic sector
The availability of deinking grades is especially problematic at the moment, the market survey found. Volumes are now almost non-existent, so mills are under extreme pressure when it comes to procurement, say several market participants. Prices here, too, are rising accordingly.
While players in the packaging segment have been relatively successful at passing on the rising recovered paper procurement costs to their customers in the form of higher new paper prices, producers in the graphic sector are facing growing margin pressure. Further price increases for deinking grades were therefore unlikely and reactions by the mills as well as idling of certain plants would be unavoidable, respondents predicted.
This article is an excerpt from EUWID's report on the recovered paper market in Germany.
Find the EUWID Price Watch Recovered Paper Germany for February in EUWID Pulp and Paper issue no 11/2021, which will be available to our e-paper and print subscribers as of 17 March 2021.