The German recovered paper market is facing significant logistics bottlenecks, with freight capacity scarcer than it has ever been, according to some market participants. Even though there is enough recovered paper available to meet demand from paper mills, it is often proving impossible to transport the material. The resulting shortfalls and increased transport costs are thus leading to some slightly higher prices for recovered paper, in what is otherwise still a relatively balanced market.
Most respondents believe the recovered paper market would have ticked along smoothly in May had it not been for the intensifying logistics problems. While tighter freight capacity was not at all unusual during periods with several statutory holidays falling on weekdays, things have never been as difficult as they are right now, many players say.
The logistics snarls are attributed to an increasing number of insolvencies in the haulage sector as well as a growing shortage of drivers. Moreover, recovered paper tends to lose out when hauliers have to prioritise scarce transport capacity, EUWID was told.
Subscribers can read the full market report and access the overview of the price changes in April for the individual recovered paper grades here:
