A course reversal may be underway on the German recovered paper market. At least for the ordinary grades (mixed paper and supermarket paper and board), the price erosion of the previous months stopped in January. Thanks to attractive export opportunities, there were even reports of slight price increases. In the new year, the only segment for which the downward price trend continued was sorted graphic paper for deinking.
At the beginning of the new year, respondents say the market appears to be turning, especially for supermarket paper and board. The price erosion that started in summer has come to an end. Quotes for grade 1.04 are at least stable, while price increases were reported in the West and North of Germany. Prices in those regions have risen by as much as €10 – or even more if the starting level was low – whereas the quotes for supermarket paper and board in the eastern part of Germany are consistently unchanged.
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The upward price trend was primarily driven by the good conditions on the Far East export market. Buyers from a number of Asian countries have recently raised their prices, respondents say. The considerable strengthening of the US dollar and continued very low freight rates are also making exports from Europe attractive.
At the end of 2024, however, prices across the market were still declining, as had been predicted by market participants in the preceding month, with the largest drops report for bales of mixed paper.
