Prices for most recovered paper grades in France unchanged in March

Very weak demand for deinking grades / Alizay starts RCP purchases


Despite weak domestic demand, the French recovered paper market was once again fairly balanced in March, so prices of many grades remained stable compared with February. Thanks to exports and low collection volumes, suppliers were able to maintain prices for the ordinary grades. Among the higher grades, only coloured letters became slightly less expensive. There was also downward price pressure on sorted graphic paper for deinking, but this only led to slight price reductions for exports to other European countries.

French prices for mixed paper (1.02), supermarket paper and board (1.04) and old corrugated containers (OCC; 1.05) were unchanged in March. Demand for these grades has still not recovered. Although recently there have been a few more inquiries from German paper mills, who had been very reticent lately, overall demand from France and neighbouring countries is still described as weak. French paper mills, particularly in the corrugated case material segment, have insufficient orders and are still occasionally idling production.

On the other hand, several  OCC volumes were flowing to Asia again in March. As a result, waste management companies in France had low inventory levels and did not see any need to make price concessions. Some of the suppliers surveyed by EUWID also had the impression that the decline in collection volumes is becoming more noticeable, especially from commercial collections. Buyers take a somewhat different view, saying there is sufficient material on the market and no problem with the supply of recovered paper. Their stocks of recovered paper are reportedly at an average level.

A new player and recovered paper buyer entered the market in March: The new corrugated case material plant in Alizay, which is slated to start up at the beginning of Q2, has started purchasing and is now building up inventories of recovered paper. Once fully up and running, the rebuilt PM will have a production capacity of 450,000 tpy of recycled corrugated case material....

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