Prices for lower grades of recovered paper plunged again in September on the British market. The renewed decline was caused by a lack of demand from the European continent, especially Germany, where many paper producers have been idling production, sometimes dramatically, in response to high energy prices. Even contracted volumes are often being reduced or postponed, say market insiders. Most UK buyers are also holding back, since mills or machines are being idled here as well (not always necessarily due to cost and market factors) and they are sufficiently supplied via their depot systems, particularly since collection volumes are expected to pick up from October.
There are mixed reports about demand from Asia. Many experts say that demand is still not rebounding, despite the low prices, because China continues to have high inventories of finished paper. Others believe demand is picking up, but note this does not come close to compensating for the absence of European customers. Moreover, Asian buyers are especially price conscious when it comes to deal-making....
