The UK recovered paper market is "extremely difficult”, say several players surveyed by EUWID at the end of August. It is now much tougher to move material than is typical at this time of year, they say. Demand from all markets – in the UK, Europe and Asia – is weak and there is little optimism that the situation will improve soon, all players agree.
Paper producers in Southeast Asia also have little need for British recovered paper, as the markets for finished paper are similarly sluggish in that region.
Even the decline in shipping rates did not provide much of a bump in the export business, especially since the strengthening of the US dollar against the British pound whittled away at this effect.
Demand for deinking grades for use in the production of printing papers was also weaker than expected in August. Interest from Asian buyers was "practically non-existent", according to one market insider. At the same time, the closure of UPM’s Hürth mill near Cologne in Germany has stirred up a lot of uncertainty for many recovered paper merchants.
In August, British market participants once again reported the sharpest price decrease for old corrugated containers (OCC).
Read the full monthly report on the recovered paper market in the UK and access price charts and graphing tools here:
