Prices for recovered paper are still pointing down in the UK. In August, another price reduction has been registered on the domestic and export recovered paper markets and there seems to be no end in sight to the negative price trend.
Exports to China remained subdued in August due to slow demand from Chinese paper mills, experts explained. In addition, several Chinese customers, who were placing higher quality demands on recovered paper deliveries from the UK as of recently, were putting pressure on British suppliers to lower their prices in order to compensate for what they considered low-quality volumes. Moreover, downward pressure on UK export prices in August was exacerbated by falling prices on the recovered paper market in the US.
Domestic prices for recovered paper headed down on weak demand and good supply. Recovered paper warehouses and yards at many recycled tissue and packaging paper mill were full to the brim in August, market observers reported. Against the background of high stocks and abundant recovered paper supply, recycled paper manufacturers were rather cautious in ordering new volumes, it is learned.
British recovered paper prices are expected to become cheaper again in September. Despite lower recovered paper arisings due to the holiday season, excess supply will persist for some time continuing to put pressure on prices, EUWID respondents believe.
⇒ This article in an excerpt from EUWID's monthly report on the UK paper market. The EUWID Price Watch UK for August will be published in EUWID Pulp and Paper no. 35 on 29 August.
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