Steep mark-ups for ordinary and deinking grades in France

Purchasing by German mills drove prices higher in March.
31.03.2021 − 

Many market participants had expected that recovered paper prices in France would rise in March, but no one had anticipated such the dramatic spike which materialised. The first signs of supply-side pressure were felt in February, but prices had remained stable at that time. In March, however, the cost of mixed paper and board (1.02), supermarket paper and board (1.04), and old corrugated containers (OCC, 1.05) leapt. Initial attempts to limit the mark-up were unsuccessful, market participants told EUWID.

Many of the market players surveyed attribute this sudden spike primarily to the purchasing behaviour of companies in neighbouring Germany. German buyers reportedly swarmed onto the French market with a voracious appetite for recovered paper – especially for packaging and deinking grades – and were willing to pay a lot of money to secure their supplies. Collection volumes were low in Germany, where some lockdown measures have been extended until the middle of April, so German buyers were looking abroad to make purchases, according to respondents.

By contrast, market participants in France were fairly satisfied with the volumes of recovered paper collected in March. The extremely tight supplies, especially in the first half of the month, were caused by the strong demand from Germany, many said. However, one merchant pointed out that collections in France were very weak in February and now, after a lag, reduced collections were having an effect on the customers’ inventory levels and on prices in March.

The full report on the French recovered paper market appears in the print and e-paper issues of EUWID Recycling & Waste Management (07/2021) out on 8 April. Online subscribers can access the report immediately here:

Recovered paper France

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