Experts believe the upswing in demand and prices on the UK domestic market to be rather short-lived.
Business on the British recovered paper market has not altered significantly in October. Demand on the export market strengthened a little at the start of the month. A few Chinese paper mills slightly boosted prices for old corrugated containers (1.05) through their buyers, however, EUWID contacts held rather mixed views about whether this trend might continue. While some reported a brief boost to demand that should evaporate by the end of the month, other market experts anticipate that prices might edge higher again in November.
A minor upswing on the export market paved the way for somewhat higher prices for OCC on the domestic market in October. On the whole, however, the British market is being influenced by relatively ample recovered paper inventories. A few EUWID contacts remarked that this state of affairs can only mean that the upswing in prices will be short-lived. Collection companies expect recovered paper arisings to jump as soon as retailers step up their Christmas business. In addition, Chinese paper mills will have to renew their import licences this winter. This procedure results in a dip in demand in the UK every year.
Tissue mills have attempted to depress prices for coloured letters (2.06) and multigrade in recent weeks, a few of them with success. A few market players voiced concerns about the trend in prices for tissue grades: Since April, prices for these grades have plunged sharply, even though printing and writing paper consumption has been falling consistently in the UK and collection volumes are thus on the decline.
⇒ This article is an excerpt from EUWID's monthly report on the UK paper market. The EUWID Price Watch UK for October will be published in EUWID Pulp and Paper no. 43 on 24 October.
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