Price erosion slows on German recovered paper market

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18.03.2020 − 

Recovered paper prices in Germany remained under pressure in February, although price reductions were much smaller than in previous months. The majority of EUWID sources expected prices to stay the same in March, although the spread of the novel coronavirus is a source of growing concern for the recovered paper business, too.

The steep decline in recovered paper prices slowed in February. Insiders think that this was mainly connected to resurgent export activity, coupled with stronger demand than in January on the German market. "February was an amazing month! We experienced indescribably good demand at good prices, especially from India and Thailand,” one EUWID source remarked. German domestic prices, especially those for supermarket paper and board, had also profited. However, price cuts for all other recovered paper grades were also much smaller than in January.

The industry is also concerned about the spread of Covid-19. The ramifications of the pandemic were hard to gauge. However, it was clear that arisings of supermarket paper and board have risen sharply once again in the wake of panic buying at supermarkets. Last year’s surplus could finally be drawn down somewhat in February, but now inventories were slowly beginning to fill back up again.

The full report on the recovered paper market in Germany will appear in the next issue of EUWID Recycling & Waste Management (6/2020). Premium subscribers will have access to the E-Paper from the afternoon of 18 March.

Online subscribers can access the report immediately here: Recovered Paper Germany

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