Negative prices on Italy's recovered paper market

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Mixed paper prices have slipped into negative territory in Italy. Recovered paper suppliers are complaining about a lack of sales markets and fear that prices might continue to slide in the new year.

Italy's recovered paper market has crossed the threshold into negative prices. Market players noted that several mixed paper (1.02) prices fell below €0. Supply is too plentiful and paper mills already had too much on stock.

The lack of sales outlets was causing even greater headaches for merchants than prices. Mixed paper, in particular, was extremely hard to sell, experts stated. The supply overhang is also clearly reflected in the outcome of the last recovered paper auction held on 4 December by Comieco, which regularly auctions off volumes from municipalities. Out of the 182,000 t of mixed paper up for auction, some 110,000 t and therefore 60 per cent of the total have not found a buyer. No bids were made for this material, even though it could have even been purchased at negative prices.

This article is an excerpt from EUWID's monthly report on the paper markets in Italy.

Find the EUWID Price Watch Italy for December in EUWID Pulp and Paper issue no 51_52/2019, which will be available to our e-paper and print subscribers as of 18 December.

Want to find out more? Check our subscriptions or test EUWID free of charge.

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