Revival of export business sends prices for ordinary RCP grades rising in Italy

29 Nov 2017 − 

Chinese recovered paper (RCP) buyers have returned to the Italian market just as quickly as they vanished in the first place. Their reappearance has paved the way for an increase in prices for ordinary RCP grades not only on the export market, but also within Italy.

Buyers and suppliers on the Italian market feel that mixed paper and old corrugated container (OCC) prices are almost back at the level where they were before Chinese buyers retreated. Recovery in recovered paper prices came reportedly too late for GD board producers to push once again the argument of rising costs and convince their customers that they needed to charge more. However, many a recycled board producer considers the early autumn's failed price hike attempt as postponed rather than doomed.

Newsprint and magazine paper manufacturers pushing for price hikes

Woodfree coated paper suppliers demonstrated a little more persuasiveness between October and November when it comes to implementing higher prices. However, it was not enough for more than a partial mark-up this autumn. Publication paper manufacturers feel that they have good chances of raising prices effective January 2018. Paper is reportedly becoming scarcer day by day and paper producers are trying to spread the message to their customers that anybody wanting to safeguard amounts should spare no trouble and expenses to do so.

Recycled containerboard and brown kraftliner suppliers are also playing the scarcity card among good demand. Against this background, they are considering new mark-ups for deliveries in the first quarter of next year.

This article is an excerpt from EUWID's monthly report on the paper markets in Italy. The EUWID Price Watch Italy for November is published in EUWID Pulp and Paper no. 48.2017.

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