IMpress August 2023

Cardboard Prices Soar in Europe, Asian Paper Market Thrives, and Transport Prospects Flourish.

Europe: Quiet Weeks and Rising Cardboard Prices: A July Overview

The past weeks have been quiet. The birds could be heard from our office, while normally, the traders would be loudly exchanging all kinds of terms within the IMTrade premises. What’s going on?

In the Benelux region, sales remained a real issue in July. Smurfit Roermond’s inventory is relatively full, and other factories are taking only what they need, with no additional orders being placed. Most of the cardboard from the Netherlands and Belgium was exported in July. Due to increasing interest from Asia, we expect this trend to continue into August.

In July, cardboard in the Netherlands was traded at prices ranging from 90 to 100 euros per ton FAS. The price of cardboard is slightly increasing, and this has already been evident in the last weeks of July, with prices exceeding 100 euros FAS being recorded.

Asia: Resurgance in India, Pakistan’s Growing Demand and China’s Market Shifts

After the Biparjoy cyclone, it seems that the Indians have come alive again. While in Europe, we complain about a small storm, we can’t fathom what comes ashore from the Indian Ocean in Pakistan and India.

Slowly, we see the demand picking up. Mainly, grades such as OCC and Kraft are in higher demand again. After a long period of quiet, the Indian market appears to be becoming more active. Overall, the situation in the paper industry in India is not optimistic, with many factory closures, especially in the Morbi area, expected. However, the market seems to show some flexibility. Indian sellers were prominently present at the major paper fair “Sinopaper” in Shanghai in July.

Prices have slightly risen in India over the past weeks. For 90/10 OCC, we started the month at USD 125 CNF, and now we have reached USD 135 CNF. Due to a stronger Euro and relatively stable freight rates, there hasn’t been much impact on the European market.

A slight increase is expected for August. Additionally, there’s an anticipated increase in demand for BBC and mixed paper as consumer products are being sought more. These types are necessary for making GD2 packaging.

Pakistan seems to be establishing itself as a regular buyer in the old paper market for certain grades. KCB, CKB, 100% OCC, and other grades are of interest to Pakistani factories. A calmer monetary market also contributes to better and smoother off-take.

Indonesia still appears to be on a gradual trajectory. It remains to be seen whether this market, like India, will show more activity in August.

In Thailand, Chinese “re-pulp” installations are gradually becoming less utilized. It simply hasn’t been economical. The withdrawal of the Chinese from these markets could mean opportunities for other markets. China remains a highly interesting and strong market, and will continue to influence Asia.

Pulp Prices Stabilize Amid Hopes of Recovery, Yet Impact on Premium Waste Paper Persists in Asian Market’

Higher grades: Pulp prices seem to have stabilized in recent weeks and are, from what we hear, showing some sings of recovery here and there. However, cheap pulp still exerts significant influence on the market for higher grades of waste paper in the Asian market. The prices of woodfree white grades of waste paper, such as SOP, Multigrade, and Polycups, have taken considerable hits in the past months. Export from Europe at these prices is challenging, yet contracts are still being made. There simply is no alternative.

Other news

We noticed that there were currently many trucks available in the market. Due to the quietness in terms of cargo loads, there was sufficient capacity to cover the shipments. With paper flows undergoing significant shifts, the abundance of available trucks allowed Imtrade to ensure reliable deliveries. We also observed that major transportation companies approached us to explore potential collaborations. During months like those, we laid the groundwork to find transport partners so that we could guarantee deliveries even when the transport market became more and more challenging. Imtrade is always open to new partners in the transportation sector so that’s why we went to the Truckstar Festival.

Truckstar 29.07

This past weekend (29.07), the Truckstar Festival took place in Assen. Our transportation department was also there, seeking out other transport companies. Perhaps, some great collaborations will emerge from this event, who knows. Valuable partnerships often start during informal moments like these.

Last but not least, our Charlotte had her birthday on the first of August. Hopefully, the typical rainy Dutch summer held off and gave us the chance for some outdoor celebration opportunities.