Following the upcycling of our website, we are excited to announce the launch of our newsletter aptly named IMpress. On a monthly basis, we will be providing you with news and updates in the field of paper recycling and we hope that our content will be beneficial to you and your business.
Ordinary and kraft grades
Holland and Belgium remain exporters
Although the Asian market saw a decline in demand and price, Belgium and The Netherlands still focus on exports. Compared to the first 2 month of the year, it will be harder for Dutch and Belgium traders to trans-ship material from the European mainland as the difference between local and export prices have shrunk. These grades are, typically, transshipped through the ports of Rotterdam and Antwerp. The declined difference between export and local prices will result in lower volumes for Asia.
Northern Europe: worsened order position papermills, low collection
On one hand, order position of the German and Polish paper industry is still weak. Most of the board and liner mills are only producing at reduced capacity. Consequently, demand for recycled fiber is weak.
On the other hand, overall collection in these markets is relatively low. One could speak of a new years dip. This low collection and exports resulted in a relatively stable market in February for mixed paper and OCC qualities.
Export of bulk grades through Hamburg and other northern European ports have picked up the last months. Prices recorded were, for example, around 100-110 FOB Hamburg, and 70-80 FOB Gdansk for EOCC.
For March prices are expected to be stable to slightly lower, as prices for export to Asia and Benelux fall back.
Southern-Europe aligned with export markets
In southern Europe, it appears that export to Indonesia, Vietnam, Thailand, and Malaysia remain relatively consistent. Consequently, the domestic market is anticipated to pay a price comparable to that of the exports.
Asian market in decline: rebound?
After a strong start of the year, the Asian market saw a decline in demand for OCC therefore putting pressure on prices. In March the overall price level has dropped around USD 20 per mt. Some orders have been concluded but suppliers are reluctant to sell bigger volumes at these rates. Low sales volumes could lead to a rebound?
India had been hoping for continuous Chinese demand for pulp rolls after Lunar New Year. Unfortunately, a lack of orders from China resulted in lower demand for OCC. Similar price drops as the rest of Asia were registered. Two weeks ago, European OCC was priced between 165 and 170 in India, and now prices have decreased to between 140 and 150. The price decrease in Asia may influence the European market as well, as the export market is less attractive. This is merely speculative.
Medium and High Grades
Lacking local and export demand for SOP puts a lot of pressure on the market. Generally selling SOP has become tougher than beginning of the year. SOP is expected to be traded at lower prices in March.
At the same time, woodfree grades like multidruck/multigrade, printers waste and white ledger are scarce. Even though prices for multi and printers waste softened slightly in February, it seems that printers have weak orders positions. Prinovis Germany announced the closure of their last printing house by the end of 2023, emphasizing the difficult situation of the graphic industry. Could this lack of volumes lead to increased market prices for March?
Demand for unprinted qualities like hard white and soft white remains strong. Traded volumes are low, and prices are relatively high compared to other years. The liner and board mills will be looking for alternatives to fulfil their appetite.