The French recovered paper market was generally balanced in June. Following the logistical bottlenecks seen in May, transport conditions eased, and recovered paper supply became easier to manage. Prices across all grades held steady at the previous month’s level.
The market for ordinary grades was uneventful in June. Demand from the paper industry was stable and followed normal seasonal patterns. Corrugated case material manufacturers contacted by EUWID said that they had not taken downtime and continued to purchase the usual amounts of recovered paper, a view echoed by waste management companies.
Market players were also able to breathe a little easier when it came to sourcing and delivering recovered paper. In May, France’s four public holidays had led to widespread disruption. The logistics situation, typically stretched at this time of year, had been particularly strained this year, insiders told EUWID. High fuel costs meant fewer lorries on the road, and the driver shortage was felt more acutely, resulting in delivery problems and delays in May. However, the situation has reportedly eased noticeably in June. Although some buyers continued to report occasional bottlenecks, particularly in eastern France, overall, supply was now largely running smoothly again.
Paper mills described the availability of ordinary recovered paper grades as good as a result. For their part, waste management companies reported that collection volumes remained low, with one business reporting a 5 per cent drop in volumes received at its own collection centres since the start of the year. Nonetheless, they confirmed that paper mills were adequately supplied, a situation some linked to the currently muted export business with Asia.
Overall, supply and demand on the French market were broadly balanced, leaving prices for mixed paper and board (1.02), supermarket paper and board (1.04) and old corrugated containers (OCC; 1.05) unchanged in June. The higher spot prices observed in April and, in some cases, in May – especially in deals with German buyers – have now disappeared, sources said. Several contacts told EUWID that the market situation had largely settled down again.
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