Developments on the British market for old corrugated containers (OCC) proved hard for insiders to anticipate in November. This was due to many different factors and market expectations, say EUWID respondents. Rarely has the timing of recovered paper purchasing had such a strong effect on prices. The Asian export market was once again driving developments on the OCC market in Britain, while the European business was fairly flat and British paper mills mostly showed little interest.
Experts suspect that the fluctuations in the OCC price reflect the nervousness that some players had about deliveries in December and early January. In addition to the usual holiday logistics bottlenecks, drivers at DS Smith had been on strike for one week in November, which also affected recovered paper collections. The strike could continue into December as well, trade union Unite announced at the start of November.
In contrast to the volatility seen for OCC, the market for mixed paper and board (1.02) was more stable. Demand for the graphic grades used to produce printing paper was limited in November amid tight supply. Both availability and demand were also low for multigrade and sorted office paper.
Read the full monthly market report and access the price table and graphing tools here: