IMpress August 2024

Olympic Feats and Paper Sheets: A Summer of Falling Prices and Rising Fun! 

As Europe enjoys the summer holidays and the spectacular Olympic Games in Paris, we witness a blend of modern sports and historic settings that is truly enchanting. For August, we present a brief update and will return with a comprehensive report in September. 

Europe
Bulk Grades: 

The European market for lower grades continues its downward trend for the second month. Due to pressure from export regions, German buyers have managed to implement a significant price reduction, particularly in the western regions. 

Cardboard spot prices in Germany were between EUR 160-175 per ton in May, EUR 175-195 in June, EUR 170-185 in July, and are expected to range from EUR 155-175 per ton delivered to the factory in August. This decline persists, but the question remains whether this downward trend will sustain throughout the month. European prices are approaching export prices, with scarcity potentially around the corner. 

Mixed paper seems to remain relatively stable. In some cases, it commands higher prices than cardboard. Could this be a sign of things to come? 

Deinking grades appeared to have initiated a slight decline post-June, but there seems to be a minor resurgence. However, uncertainty prevails regarding the future as significant graphic paper capacity exits the market. 

Higher Grades: 

Weak demand characterizes the market for woodfree white paper. Despite the significantly increased pulp prices, which initially opened the door for potential price improvements, this trend has not continued. Consequently, we anticipate a stable market for now, with a potential risk of price reductions in September.   

Multidruck and SOP (Sorted Office Paper) are relatively well-demanded, with prices showing a slight upward trend. 

Export
Lower Grades: 

  The export market continues to experience a lull in demand. Buyers are clear about their requirements, and prices have remained within the same range for months. For example, the price of 90/10 cardboard in India has been between USD 180-190 per ton for months. While sporadic purchases occur, larger tonnage offers seem to disappear like the sun setting on the horizon. However, we expect a slight increase in demand for cardboard grades in the coming months. If European prices continue to fall, larger volumes may become tradeable once again. 

 For now, we wish everyone a pleasant summer and enjoy the holidays! See you in September.